The gold jewellery industry entered FY27 facing a four-pronged challenge. Soaring oil prices, rising inflation concerns and renewed expectations of higher interest rates amid the West Asia crisis coincided with the once-in-three-years Adhik Maas period, which typically dampens wedding-related jewellery demand. At the same time, Prime Minister Narendra Modi urged citizens to curb gold purchases to help arrest the freefall in the Indian rupee, while customs duty on gold was raised to 15% from 6%.
Despite these headwinds, India's listed jewellery stocks have moved in the opposite direction. Backed by stronger-than-expected June quarter business updates, the sector has rallied as much as 40% in just one month.
