Kalyan Jewellers, PC Jeweller, Thangamayil Jewellery, Titan: Jewellery stocks suffer double whammy; here's why  

Shares of jewellery firms have suffered a double blow in the last two sessions. The weak sentiment in jewellery stocks comes after the government on September 15 imposed a 0.4% Merchant Discount Rate (MDR) on Person-to-Merchant (P2M) UPI transactions above Rs 2,000 from October 15. Payments of Rs 75,000 and above will carry a maximum charge of Rs 300 per transaction.

The gold jewellery industry logs high-value transactions, making payment-related costs particularly significant for retailers. Jewellery stores processing a large number of UPI transactions every day are likely to see the cumulative merchant discount rate (MDR) on these individual payments add up to a substantial operational expense over a month.

The Hindu Busines Line quoted S Abdul Nazar, State General Secretary of the Kerala Gold and Silver Merchants Association saying that jewellery retailers are already dealing with a range of operating and compliance-related costs, including GST, hallmarking and HUID charges, banking fees, security expenses and employee costs. According to the news report, Nazar said introducing MDR on UPI transactions could further increase the cost burden, with small and medium-sized jewellery businesses likely to feel the impact more acutely.

Another factor, which has affected sentiment in the jewellery stocks is that Bureau of Indian Standards (BIS) has raised gold hallmarking fee by 67%. The hallmarking fee has been increased from Rs 45 to Rs 75 per gold article. New rates are effective from September 14, 2026. Minimum charge for gold consignments has been fixed at Rs 200.

Shares of listed jewellery brands Titan Company Ltd , Kalyan Jewellers, PC Jeweller and Senco Gold Ltd among others have been affected by the latest developments.

In the current session, PC Jeweller shares closed 2.37% lower at Rs 12.36. Market cap of the gems, jewellery and watches firm fell to Rs 12,002 crore.

Kalyan Jewellers shares ended on a flat note at Rs 582. Market cap of the jewellery firm stood at Rs 60,106 crore.

Shares of jewellery major Titan Company ended 1.14% lower at Rs 4859. Market cap of the firm fell to Rs 4.31 lakh crore.

Shares of Thangamayil Jewellery closed 2.37% lower at Rs 4820. Market cap of the firm slipped to Rs 14,981 crore.

However, two stocks managed to buck the trend in the current session.

Goldiam International shares rose 1.20% to Rs 325.70 today. Market cap of the firm stood at Rs 4904 crore. Shares of another gold retailer Senco Gold rose 3.43% to Rs 343.50. Market cap of the firm rose to Rs 5630 crore.

On the other hand, jewellery shares such as Kalyan Jewellers, Titan Company, PC Jeweller, Senco Gold, Thangamayil Jewellery and Goldiam International slipped up to 8% in early deals on Wednesday amid the two negative developments for the jewellery sector.

PC Jeweller shares slipped 8% to Rs 11.87 in early deals. Kalyan Jewellers shares lost 1.67% to Rs 592.60. Titan Company stock was trading on a flat note at Rs 4882. Shares of another gold retailer Senco Gold declined 3% to Rs 325.85. Shares of Thangamayil Jewellery fell 2.8% to Rs 4776. Goldiam International shares too slipped up to 2.29% to Rs 316.80 in early deals.