Gold Price Crash May Fuel Jewellery Demand: Why Kalyan Jewellers Share Price Could Shine Despite 5% Dip

Shares of Kalyan Jewellers India declined nearly 5% on Monday, tracking the broader market sell-off amid persistent concerns over the Iran-US conflict and a sharp rally in crude oil prices. However, in contrast to the weak stock market sentiment, gold prices witnessed a steep correction, falling sharply amid heightened geopolitical uncertainty and rising energy costs.

Kalyan Jewellers share price was trading 4.95% lower at Rs 363.85 per share on BSE with a market capitalisation of Rs 37,576.25 crore. The stock had dipped to its intraday low of Rs 361.60 per share and an intraday high of Rs 379 per share.

How Gold Price Crash Will Impact Kalyan Jewellers Share Price?

Gold price in India saw one of its steepest crashes on Monday, March 23. The price of 24 karat gold in India declined around Rs 1 lakh per 100 grams on Monday to Rs 13,56,500 per 100 grams, as per Goodreturns data.

While gold price crash may offer a lucrative buying opportunity for retail jewellery buyers, it has created a mixed reaction in the Indian stock market. Jewellery sector stocks like Kalyan Jewellers continued to declined during Monday's intraday trade.

"Lower gold prices can actually help demand. In India, when gold becomes cheaper, more people buy jewellery. This is especially true during wedding seasons and festivals. So from a business point of view, this can support sales. However, the stock market reacts differently. When gold prices fall quickly, it creates uncertainty around inventory value and margins. Companies holding high-cost inventory may face short-term pressure. That is why the stock may see volatility," explained Darshan Rathod, COO, Multyfi.

"In my view, the long-term outlook for Kalyan Jewellers depends more on its store expansion, brand strength, and customer demand, not just gold prices. In the short term, the stock may remain unstable. But over time, stability in gold prices can improve investor confidence again," Rathod added.

Kalyan Jewellers Share Price Recommendation

Kalyan Jewellers delivered nearly 35% revenue growth in its India business in the first nine months of the financial year 2025-26. The revenue growth was driven by SSG and store expansion. Persistent jewellery demand in India despite sharp surge in gold and silver rates in January helped the company in boosting its demand. Motilal Oswal maintained its 'Buy' recommendation for the stock with a target price of Rs 550 per share.

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