Shares of jewellery companies fell over 5 percent on Friday after reports of Indian banks halting gold and silver imports due to delays in government clearance. Some of the most affected stocks were Kalyan Jewellers and Titan.The stock of Kalyan Jewellers was trading almost 5 percent lower than its previous close. The stock had opened 1 percent higher at Rs 444.95 compared to its previous close of Rs 440.15. During the trade, it fell as much as 5.6 percent to reach Rs 415.15 apiece.
Similarly, the stock of Titan Company shed early gains to trade with a loss of around 0.7 percent.
The stock opened marginally higher at Rs 4,475 compared to the previous close of Rs 4,461.30 apiece. It later surged to Rs 4,507, which was about 1 percent higher than the previous close.However, the scrip fell to Rs 4,330 apiece during the trade, which was almost 4 percent lower than the day’s high. The halt in imports has created uncertainty in the bullion market, with several tonnes of gold and silver reportedly stuck at customs due to pending approvals from the Directorate General of Foreign Trade (DGFT).This development has raised concerns over supply shortages, especially ahead of the upcoming festive demand season, including occasions like Akshaya Tritiya, when gold purchases typically surge.The disruption in imports is expected to impact jewellery companies, as limited availability of raw materials could increase procurement costs and affect margins.India, being one of the largest consumers of gold globally, relies heavily on imports to meet domestic demand. Any disruption in supply chains can have a direct impact on both prices and stock performance of jewellery firms.Market participants are closely watching government action to resolve the issue, as prolonged delays could further strain the sector and keep stock prices under pressure.