Titan, Kalyan Jewellers, Senco Gold, PN Gadgil: Gold stocks rally up to 5% today. Here's why

Gold stocks were seen in action during the trading session on Saturday amid the expectations that the prices on the yellow metal shall be trimmed or will be kept unchanged to the least, to keep it affordable for the middle class as the yellow metal is hovering around its all-time high levels. Gold prices hit an all-time high of Rs 82,600 on Friday and were seen at Rs 82,299 on Saturday, rising about half a per cent.

The FM slashed the import duty on gold by 9 per cent in the previous budget, reducing it from 15 per cent to 6 per cent. This move helped drive gold consumption by making the prices more affordable. However, amid the geopolitical uncertainties, gold prices have been on the rise in the past few months.

Shares of Senco Gold Ltd surged more than 4.33 per cent on Saturday to Rs 490, compared to its previous close at Rs 469.65 on Friday. The total market capitalization of the company topped Rs 8,000 crore mark. The stock had traded ex-split in 2:1 ratio on Friday itself.

Kalyan Jeweller India Ltd followed Senco, as the corrected jewellery counter surged more than 4.15 per cent to Rs 523.45 during the day. The company bragged a total valuation of more than 50,000 crore. The stock has corrected nearly 38 per cent from its 52-week high at Rs 794.60 a month ago.

Recently listed PN Gadgil Jewellers inched up nearly 1.7 per cent to Rs 574.80 on Saturday, against is previous close at Rs 565.30 on Friday. The stock has corrected more than 33 per cent from its 52-week high at Rs 843.80 hit in September 2024. However, the stock is 22 per cent higher than its IPO price of Rs 480 apiece.

Smallcap jewellery player Sky Gold Ltd topped among the gainers, rising nearly 5 per cent to Rs 353.55 during the day. The stock had ended at Rs 336.75 on Friday. The total marketcap of this counter was close to Rs 5,200 crore mark. Another smallcap gold firm, Motisons Jeweller was up 5 per cent, hitting its upper circuit level at Rs 25.05. It was valued close to Rs 2,500 crore.

On the other hand, Jhunjhunwala-backed Titan Company, the largest jewellery player in the country, was the only exception which dropped more than 1.22 per cent to Rs 3,446.85 for the day. The total market capitalization stood firmly above Rs 3 lakh crore mark. Titan will announce its results for the December 2024 quarter on Tuesday, February 2.

The gold and jewellery industry expect a cut in import duties on the yellow metal from the Finance Minister Nirmala Sitharaman in the Union Budget 2025. The move will help bring Indian gold prices closer to the global benchmarks, curb smuggling and boost demand, they say.