In her first comprehensive budget speech for the Modi 3.0 government, Finance Minister Nirmala Sitharaman announced a significant reduction in customs duties on gold and silver, leading to a notable rise in shares of jewellery companies.

Effective immediately, the customs duty on gold and silver has been slashed from 15% to 6%, while the duty on platinum has been reduced from 15.4% to 6.4%. This move aims to lower domestic prices and potentially boost demand for these precious metals.

The announcement sparked a rally in the stock market, with shares of leading jewellery companies seeing gains of up to 8%. Notable performers include:

Kalyan Jewellers: Shares surged up to 6.11%, reaching a 52-week high of ₹561.65 before closing 4.4% higher at ₹552.

Titan Ltd: Saw its stock rise by 7.2% to an intraday high of ₹3,490, eventually closing 6.5% higher at ₹3,468.

Rajesh Exports: Experienced an 8.24% increase, hitting an intraday high of ₹322.2, and closing up 6.84% at ₹318.

PC Jeweller: Reached a new 52-week high of ₹74.14, with shares locked at the upper circuit limit of 5% for the session.

Goldiam International Ltd: Rose over 8% to ₹185.8, ending the day up 8.0% at ₹184.

Thangamayil Jewellery Ltd: Closed 8.5% higher at ₹1,915 per share.

In contrast, MCX Gold futures fell by more than 5% to around ₹68,848 per 10 grams, while MCX Silver futures were down by 4.2%, trading at ₹85,412 per kg. This decline reflects the anticipated drop in domestic gold and silver prices following the customs duty reduction.

The cuts in customs duties are expected to stimulate demand in the domestic market and provide a boost to jewellery companies, reflected in the strong performance of their stocks today.