Jewellery counters soared on Monday as investors reacted positively to the India–US joint statement unveiling a framework for an Interim Trade Agreement (ITA), seen as the first major step toward a broader Bilateral Trade Agreement (BTA). Shares of leading players such as Titan, Kalyan Jewellers, Senco Gold and PC Jeweller gained as much as 12% during the session.

The announcement provided long-awaited tariff certainty for sectors tied to exports, with the gems and jewellery industry emerging as one of the biggest potential winners.

Trade framework lifts sentiment

The United States continues to be one of the most significant markets for Indian jewellery exports, and analysts said clarity on reciprocal duties immediately brightened the outlook for manufacturers, exporters and organised retailers with overseas exposure.

Under the framework, Washington will impose an 18% reciprocal tariff on Indian-origin goods across categories including jewellery, textiles, apparel, leather, plastics, rubber, artisanal products, organic chemicals, home décor and select machinery. The document also outlines the possibility of phasing out reciprocal duties on a wider range of products in the future, a move that could further support export-led segments.

In return, India will reduce tariffs on certain food and agricultural imports from the US and commit to procurement worth Rs 500 billion over five years. The plan also includes the withdrawal of the 25% Russian oil-related duty on Indian imports–conditional on India ending crude imports from Russia and shifting to US energy purchases under a monitored mechanism.

Jewellery stocks rally

The market reaction was immediate, with strong buying interest across jewellery names.

Kalyan Jewellers jumped more than 11.7% to Rs 424.30, while Senco Gold advanced nearly 7% to Rs 355.75. P N Gadgil Jewellers rose around 6% to Rs 582.15, and Thangamayil Jewellery gained over 5% to Rs 3,555.30. PC Jeweller added roughly 4% to Rs 10.56, and Titan Company climbed more than 2% to Rs 4,227.80.

Traders said the proposed trade framework improved visibility around export tariffs, prompting investors to re-rate companies expected to benefit from stronger demand in the US market.

Industry welcomes tariff clarity

Sector representatives said the developments could revive export volumes that have been under pressure and restore confidence across the supply chain.

Colin Shah, Managing Director of Kama Jewelry, called the move a significant boost for the industry. “The announcement of zero tariff on gems & diamonds is a momentous one and well rejoiced by the Indian gems & jewellery sector. India being the global hub for diamond processing, was impacted severely due to the trade tariffs, where trade had dropped over 60% when it comes to cut & polished diamonds. The waiver of tariff will help revive exports and reinstate the sparkle in business,” he said.

He further noted the industry's appreciation for the government’s efforts. “The industry is grateful to the Indian government and the Ministry of Commerce for the negotiations, noting that the move would not only provide a strong boost to the sector but also contribute meaningfully to the broader goal of Aatmanirbhar Bharat by adding long-term value and supporting domestic manufacturing and exports.”