Kalyan Jewellers, Titan Fall As Banks Halt Gold Imports; MMTC Rallies 10%

Shares of Kalyan Jewellers and Titan fell on Friday after reports that Indian banks have suspended fresh gold and silver import orders, with tonnes of bullion stuck at customs due to a missing government authorisation.

Kalyan Jewellers dropped as much as 3%, closing at ₹426.85 on the NSE, while Titan slid to ₹4,441 during midday settling at ₹4,525.90 at closing bell.

Metals and Minerals Trading Corporation of India (MMTC) bucked the trend, surging 10% on market rumours that the state-run trading company had received special permission to import gold while other applications were rejected.

What Caused The Halt

The Directorate General of Foreign Trade (DGFT) issues an annual notification at the start of each financial year specifying which banks are authorised by the Reserve Bank of India (RBI) to import gold and silver. The previous directive, valid until 31 March 2026, has expired. Banks are still awaiting the updated order for FY27.

With no fresh notification issued, banks have suspended new orders from international suppliers. More than five tonnes of gold and around eight tonnes of silver are currently held up at customs, according to trade sources.

Supply Fears Ahead Of Akshaya Tritiya

The timing is particularly sensitive. Akshaya Tritiya, one of India's most important gold-buying periods, is just days away. Retail availability may face disruption if supply tightens during this period. Premiums could rise as a result, despite steady consumer demand. Gold demand in India came in at 710.9 metric tonnes in 2025, a five year low.

Broader Implications

Reduced bullion imports could narrow India's trade deficit and ease pressure on the rupee, which has been under strain from elevated commodity prices and geopolitical tensions.

"There is a need to bring clarity and ensure imports resume," said Surendra Mehta, secretary at the India Bullion and Jewellers Association.

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Stock Reaction

Among other jewellery stocks, Thangamayil Jewellery fell 1.72%, Rajesh Exports dropped 1,53%, and Ethos declined 1.57% on the BSE. Goldiam International bucked the trend, rising nearly 4%.

Much now depends on how quickly the government issues the pending DGFT notification. Until then, supply uncertainty might keep jewellery stocks under pressure.

Sources:

The Economic Times

Outlook

Reuters