Kalyan Jewellers, Vaibhav Global, Thangamayil, Senco, PN Gadgil & Goldiam jump up to 15%; here's why

Shares of several gems and jewellery companies jumped sharply in Monday’s session, climbing up to 15 per cent, after an interim trade agreement between India and the US boosted investor sentiment.

Stocks such as Vaibhav Global Ltd, Goldiam International Ltd, Kalyan Jewellers India Ltd, Thangamayil Jewellery Ltd, PN Gadgil Jewellers Ltd and Senco Gold Ltd witnessed strong buying interest during the session.

At last check, shares of Vaibhav Global, Goldiam International and Kalyan Jewellers were up 14.90 per cent, 13.51 per cent and 12.02 per cent, respectively. Thangamayil Jewellery gained 6.08 per cent, while P N Gadgil Jewellers and Senco Gold advanced 5.38 per cent and 4.40 per cent, respectively.

Some market analysts attributed the strong uptick to a combination of improving sentiment following the India–US interim trade deal and a recent correction in gold prices from record highs.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said some buying interest is emerging in physical gold jewellers as the precious metal has corrected from its peak. He added that the India–US trade deal has also lifted sentiment, which is reflected in the rise in jewellery stocks.

G Chokkalingam, Managing Director – Research at Equinomics, said high precious metal prices are expected to reduce jewellery demand, leading to a negative short-term outlook. He added that jewellers with substantial inventories of gold bought at lower prices a few months ago could use those stocks to deliver better performance in the near term.

Meanwhile, domestic equity benchmarks were trading higher, gaining around 0.5 per cent, supported by positive global cues. The broader market outperformed the frontline indices, with the Nifty Midcap index rising 1.29 per cent and the Nifty Smallcap index surging 2.08 per cent.