Jewellery Retail - India: Gold consumption in focus; Share gain potential amid near-term sentiment drag?

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Jewellery Retail - India: Gold consumption in focus; Share gain potential amid near-term sentiment drag?

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Jewellery Retail - India

Gold consumption in focus; Share gain

potential amid near-term sentiment drag?

Industry Overview

Recent commentary weighs on jewellery stocks 12 May 2026

Comments by Prime Minister Modi encouraging moderation in gold consumption for a Equity

year (alongside suggestions to curb fuel consumption, foreign travel, etc.) has refocused India

market attention on India’s gold import intensity and the near-term jewellery business Consumer

outlook. As Indian jewellery stocks corrected following the remarks, investor incomings Aditya Mathur >>

seem focused on assessing whether the commentary remains advisory in nature or could Research Analyst

precede policy action. Presently, there is no specific update on any change to import BofAS+91 22India6632 8958

duty (which was lowered to 6% from 15% in the Jul-24 Budget), GST on jewellery, cess aditya.mathur@bofa.com

or other restrictions; nevertheless, investor sentiment seems to have been impacted. Pritesh Sonar >>

Research Analyst

BofAS India

+91 22 6632 3067Demand and supply implications?

pritesh.sonar@bofa.com

Jewellery consumption in India remains culturally entrenched, with majority of demand

coming from weddings (~50%+) and occasion-led purchases, which may be difficult for

consumers to curtail. However, we need to see if there’s any change to consumer Related research:

sentiment and the strong demand trajectory near-term – any signs of postponement or

even preponement (in anticipation of potential policy action), ticket-size moderation or a Titan Company: Underlying earnings

higher share of exchange-led buying will bear close watching.