Titan, Kalyan Jewellery soar up to 20% on India-US trade deal boost

Analysts believe that the gems and jewellery related sector is likely to benefit from the India-US trade deal.

Titan, Kalyan Jewellers, gold jewellery share price today

  Shares of Indian gold jewellery makers and exporters zoomed up to 20 per cent in Tuesday's intra-day trade after the US reduced reciprocal tariffs on India.  Among individual stocks, Goldiam International hit the 20 per cent upper circuit at ₹357.70 on the NSE in today's trading session. Similarly, Titan Company, Kalyan Jewellers, Thangamayil Jewellery, Rajesh Exports and PC Jeweller surged in the range of 5 - 8 per cent at the highest point of trade on Tuesday.  After months of negotiations, India and the US reached a trade agreement, wherein the latter agreed to reduce reciprocal tariffs on India to 18 per cent from 25 per cent.  The US President in hit post on Truth Social said, "Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 per cent to 18 per cent.” READ MORE  At 11:10 AM, Goldiam International was locked at the 20 per cent upper limit, backed by trades of around 2.2 million equity shares on the NSE. Among the leading gold jewellery players, Titan share price was up 3.3 per cent at ₹4,085 on volume of around 3.40 lakh shares, and Kalyan Jewellers stock rose 5.6 per cent at ₹386 amid trades of around 3.4 million shares.  READ STOCK MARKET UPDATES TODAY LIVE 

Here's why gold jewellery shares were in demand on Tuesday?

Analysts at Elara Capital reckon that the India-US trade deal may mark the start of good times for India. They expect Indian equities to outperform in the coming weeks.  "We don't rule out the Indian equities becoming the best performers in the Emerging Markets (EMs) in the upcoming weeks. MSCI India (-5.1 per cent) has underperformed EMs (+8.9 per cent) CYTD," highlights Elara Capital.  ALSO READ | Gokaldas to KPR Mill: Textile stocks soar up to 20% on India-US trade deal  Among export-related sectors, the brokerage firm sees gems/jewellery (11.5 per cent of CY24 exports to the US), textiles/apparels (3.2 per cent average) and machinery/ equipments (8.1 per cent) as the immediate beneficiaries.  Meanwhile, Gold and Silver prices have been witnessing high volatility in recent days, with prices falling by as much as 44 per cent from recent high levels in a matter of three trading sessions.  On Tuesday, thus far, MCX Gold prices were seen holding a gain of 3.5 per cent at ₹1,49,000 levels; while MCX Silver prices soared over 7 per cent to ₹2,60,700 levels. MCX Gold and Silver had registered life-time highs at ₹1,80,799 and ₹4,20,024 on January 29.  ALSO READ | Gold, silver ETFs rebound as three-day rout in precious metals ends  Back to equities, among other gold-related stocks - Rajesh Exports was locked at the 5 per cent upper circuit, and PC Jeweller was up 1 per cent. Thangamayil was down 1 per cent.

Tech analyst sees 10% upside in Titan

Technical analyst, Hitesh Tailor of Choice Broking has recommended a 'Buy' rating on Titan, with a target price of ₹4,500 per share. This translates into over 10 per cent upside in Titan from current levels.  "Titan continues to exhibit a strong bullish structure in the longer-term trend, characterized by a consistent higher high–higher low formation, reflecting sustained strength and trend continuity. Recently, the stock has delivered a decisive wider-range horizontal breakout, supported by healthy volumes, indicating strong institutional participation and confirming the validity of the breakout," says Hitesh Tailor.  Based on technical parameters, Tailor recommends that investors may consider long positions near current levels, with dips offering accumulation opportunities up to ₹3,850, targeting ₹4,500, while maintaining a stop loss at ₹3,700 to manage downside risk.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.