Prime Minister Narendra Modi’s clarion call urging citizens to pause gold purchases for a year has cast a dark shadow over jewellery stocks, with Kalyan Jewellers emerging as one of the biggest casualties. Already reeling under weak market sentiment and its exclusion from the MSCI Standard Index, the stock plunged to a fresh 52-week low on Wednesday, extending its steep correction to over 40% in less than 10 months. With sentiment battered by policy headwinds and technical weakness, analysts believe the near-term outlook for the stock remains fragile despite strong underlying fundamentals.
Moreover, to discourage gold imports and mitigate the rupee fall, the government hiked import duties from 6% to 15% on Tuesday.
