Titan, Senco, Sky Gold, PN Gadgil, Kalyan Jewellers; Why Gold Stocks Are Buzzing After India-US Trade Deal?

Gems and jewellery stocks pulled back mildly on February 4th, but the majority of them still traded higher. These stocks witnessed a sharp rally in the previous session due to the much-awaited trade deal between the US and India. President Donald Trump has trimmed tariffs to just 18% on Indian goods, which is the lowest compared to any other neighboring Asian countries. This comes as good news for the jewellery sector because India is among the leading exporters of precious gems and metals to the US.

Gold Stocks In Focus:

After a strong rally up to 20% on February 3rd, gems and jewellery stocks corrected on February 4th. At the time of writing, the broader sentiments in gems and jewellery stocks were mixed. Stocks like Goldiam International, Kalyan Jewellers, PN Gadgil Jeweller, Senco Gold, and Thangamayil Jewellery surged by 1% to 2%.

The largest gems and jewellery company, Titan Ltd, soared nearly 2% on Wednesday. However, stocks like PC Jeweller, Bluestone Jewellery, Ethos, and Vaibhav Global were trading marginally lower to down 1%.

"Investors should stick to fairly valued largecaps. The sectors that are expected to gain from exports to US, like textiles and apparels, gems and jewellery and marine processing will witness some more price action," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

How US-India Trade Will Impact Gems & Jewellery Sector?

According to data from ICONIC Wealth, gems and jewellery accounts for 11% of the total exports to the US. This makes the sector fourth largest after electronic goods, chemical and products and others export. US accounts for 20% of the exports from India, making it the largest export destination. In FY25, India ran a merchandise trade surplus of Rs. 41 billion with the US.

From the US-India trade deal, analysts here said that labour intensive sectors (like textiles, gems & jewellery) could benefit the most, as the 50% tariff primarily targeted these sectors while electronics, pharma etc were already exempted.

Similarly, economists at UBS India said, "The US accounted for $92 billion, or 20% of India's goods exports, or about 2.2% of India's GDP as of CY2025. With the US India trade deal, we expect sectors including textiles, gems & jewellery, engineering goods, leather and chemicals could be likely to benefit. We do note that despite higher US tariffs on India coming into effect from August 2025, India's goods exports have held up (up 3%YoY during Sept-Dec) largely on export diversification."

However, these economists also pointed out that after the 50% tariffs imposed in mid-2025, India's exports to the US fell 1%YoY during September to December last year. The exports largely in categories like gems & jewellery and marine products, it gained market share in other markets including China, UAE, Vietnam and Thailand.

Accordingly, the latest deal comes as a major positive for gems and jewellery stocks.

With effect from February 2, 2026, US has reduced reciprocal tariffs from 25% to 18%. This will eventually lead to scrap the additional 25% tariffs that was imposed in August last year. By mid-2025, US tariffs on Indian exports reached 50% which was a combination of 10% baseline, 15% reciprocal making 25% plus additional 25% punitive duty imposed with effect from August 27, 2025.

Now, with the additional 25% punitive duty is removed and 25% reciprocal tariffs is reduced to 18%. Accordingly, US tariffs on Indian exports is chalked down to 18% on most of Indian goods. Not just that US is looking forward to make more cuts in tariffs till they reach to zero levels in the future.

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