While welcoming measures supporting MSMEs and lab-grown diamond (LGD), stakeholders from gems and jewelery sector said some of their requests for a cut in import duty on gold and GST rationalization did not materialize in the Union Budget 2026-27.

Kirit Bhansali, Chairman, Gem and Jewelery Export Promotion Council (GJEPC), said: “We thank the government for a positive, growth-focused Budget that addresses key bottlenecks and gives fresh momentum to India’s gems and jewelery sector. It improves liquidity, supports manufacturing and strengthens exports across the value chain.”

The removal of the ₹10 lakh cap on courier exports is a big boost for e-commerce, enabling MSMEs, artisans and small jewelery brands to reach global buyers directly, with smoother handling of returns and quicker turnaround.

NID initiative

Extending duty-free import of LGD seeds and sawn diamonds till March 2028 is a timely and practical step. It keeps input costs low, supports production and exports, and safeguards a fast-growing segment where India already leads globally, helping secure the future of our industry.

Setting up a new National Institute of Design (NID) will strengthen design talent and innovation in the country. For the gems and jewelery sector, this means better product development, contemporary styling and stronger branding, helping Indian manufacturers move up the value chain and compete more effectively in global markets.

“Overall, this budget gives the right push for growth towards Viksit Bharat and moves us closer to our goal of scaling exports to $100 billion by 2047,” Bhansali said.

Export sops missing

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewelers Association Ltd, said the bullion industry had expected a cut in import duty on gold, GST rationalization, export incentives and extended credit support. The Budget announced capital gains tax exemption on RBI Sovereign Gold Bonds, applicable only to original subscribers, not to secondary market buyers, while there were no announcements of any meaningful reduction in gold import duty or GST reforms.

Colin Shah, MD, Kama Jewelry, said the proposal to slash reciprocal tariffs to 18 per cent comes as a great relief to the Indian gems & jewelery sector and is well-received. The US has been a prominent consumer market of Indian Gems & Jewellery, and the sentiment had taken a hit due to the tariff implications. This partial relaxation will reinstate confidence in Indian jewelery manufacturers and exporters as well as the buyers in the American market.

The government has struck a fine balance and the industry looks forward to further relaxation in tariff, in the best interest of India’s economic growth., he said.

Shruti Jain, Chief Strategy officer, Arihant Capital Markets, said the precious metals markets reacted sharply after the budget, with gold prices falling to around ₹1.36 lakh per 10 grams and silver plunging as much as 19 per cent on MCX, reflecting heightened volatility and cautious sentiment around fiscal policy outcomes. This sharp sell-off in gold and silver shows how Budget day expectations can impact commodities trading, especially in a market already jittery about policy direction and macro uncertainty.

Tapan Patel, Fund Manager, Commodities, Tata Asset Management, said commodity prices may follow broad global geo-economic factors focusing more on US FOMC stance, upcoming economic data and shift in geopolitical factors. Investors may re-assess asset allocation and look for relative stability and consolidation in commodities to invest after recent volatile move and sharp selloff in gold, silver and copper prices.

Strong signal for manufacturing

Ricky Vasandani, CEO & Co-Founder, Solitario, said Budget 2026 sends a strong signal for sectors driven by advanced manufacturing, ethical sourcing and consumer-led growth. Measures such as the continued focus on retail-led demand, the ₹1.4 lakh crore allocation towards growth-oriented priorities and the ₹10,000 crore SME Growth Fund under the ‘Champion SMEs’ initiative are expected to improve access to capital for innovation-driven businesses.

Equally impactful are the export-focused reforms, including faster and low-intervention customs processes, duty rationalization and exemptions on capital goods linked to critical mineral processing. Besides the sustained emphasis on research and development and responsible adoption of advanced technologies, these steps create a more enabling environment for lab-grown diamond and ethical luxury manufacturers to scale responsibly, strengthen global competitiveness and contribute meaningfully to India’s vision of Viksit Bharat.

Chetan Thadeshwar, Chairman and MD, Shringar House of Mangalsutra Ltd (Gold & Jewellery), said the Union Budget 2026 reinforces the importance of macro-economic stability and disciplined fiscal management at a time when domestic consumption remains the primary growth driver for the jewelery industry. The Government’s emphasis on realistic budgeting, tighter monitoring of expenditure and improved execution efficiency provides a more predictable operating environment for consumer-facing sectors that are sensitive to inflation and income security.

“As economic stability supports household confidence and formal employment generation, discretionary demand for jewelery is likely to strengthen across both wedding-led and daily-wear categories. For the industry, this predictability enables better long-term planning across manufacturing, retail and exports, while at a broader level it supports consumption-led growth, employment generation and India’s position as a trusted global jewelery manufacturing hub,” he said.

Decisive shift for women’s livelihoods

Arthi Ramalingam, Founder and CEO, Eternz, said the Union Budget 2026 marks a decisive shift from enabling women’s livelihoods to enabling women’s ownership. Initiatives like She MARTS and the continued success of the Lakhpati Didi program recognize that true economic empowerment comes when women are given market access, brand visibility and the ability to scale, not just credit. For sectors like jewelery and design-led consumer brands, this is a powerful signal. “At Eternz, we work closely with small, independent and women-led jewelery brands, and policies that strengthen community-owned retail, skilling and innovative financing directly accelerate their growth journeys,” she said.

Namita Kothari, Founder, Akoirah by Augmont, said the Union Budget 2026-27 reinforces productivity-led growth and stable fiscal management, which supports long-term confidence in discretionary categories like jewellery. While there are no direct consumption incentives for the sector, the broader focus on trade facilitation, process simplification and competitiveness is constructive for organized, compliance-driven players.

For emerging categories like lab-grown diamonds, a more sustainable, innovation-led segment, long-term competitiveness will be shaped by stronger manufacturing capabilities, skilling depth and export readiness, along with building deeper consumer trust through transparency, clear quality standards and consistent value communication.

No easing of cost pressures

Renisha Chainani, Head of Research, Augmont, said the bullion industry expected support to ease cost pressures from high gold and silver prices, including import duty reductions on gold, cut and polished diamonds, colored gemstones, and GST rationalization. It also sought simplified customs procedures, duty-drawback reform and policy steps to help position India as a global diamond trading hub and boost exports and competitiveness. “In the actual budget announced, there were no major sector-specific tax cuts or import duty reductions announced specifically for the gems and jewelery sector,” Chainani said.

Mangesh Chauhan, Managing Director of Sky Gold & Diamonds, said the Union Budget reinforces economic stability and long term growth, creating a positive environment for the jewelery industry that is driven by consumer trust and aspirations. Its focus on fiscal discipline, employment generation and ease of doing business will strengthen domestic demand and support the organized sector. For manufacturers like Sky Gold and Diamonds, this direction encourages innovation, expansion and technology adoption, enabling India to further strengthen its position as a global jewelery hub. “We remain committed to delivering superior craftsmanship, transparency and value while contributing to the growth of the industry and the nation,” Chauhan said.

Published on February 2, 2026

Brokerages broadly highlighted strong disbursement momentum and margin improvement, while flagging elevated credit costs as a key monitorable. | Photo Credit: iStockphoto

Shares of Cholamandalam Investment and Finance Company rallied 9 per cent in early trade after the lender reported a steady set of December-quarter numbers and announced an interim dividend.

The stock jumped as much as 9 per cent to ₹1,740 on the NSE before paring gains. At 10 am, it was trading 5.5 per cent higher at ₹1,681.10.

The company posted a standalone net profit of ₹1,287.66 crore for the quarter ended December 2025, up 18 per cent year on year from ₹1,086.53 crore. Revenue from operations rose 17 per cent to ₹7,874.94 crore compared with ₹6,709.21 crore in the corresponding period last year.

The board also approved an interim dividend of ₹1.30 per share, with February 5 set as the record date.

Brokerages broadly highlighted strong disbursement momentum and margin improvement, while flagging elevated credit costs as a key monitorable.

Motilal Oswal said Cholamandalam Investment delivered a mixed operating performance, noting that a healthy pickup in disbursements during the festive season and following GST cuts drove assets under management growth of 21 per cent year on year. The brokerage pointed out that credit costs remained high because of write-offs and slippages, though an improvement in Stage-2 assets could translate into better Stage-3 trends in the March quarter. It added that margins expanded around 10 basis points quarter on quarter on better yields and a decline in cost of funds.

Motilal Oswal reiterated its buy rating with a target price of ₹2,000, saying the stock trades at 3.7 times FY27 estimated book value and needs sustained AUM growth and improving asset quality to justify the premium valuation.

PL Capital upgraded the stock to buy from accumulate, citing improved growth visibility and a better credit-cost outlook into Q4FY26 and FY27. The brokerage highlighted 16 per cent year-on-year growth in Q3 disbursements across segments and retained its AUM growth estimates of 22 per cent and 21 per cent for FY26 and FY27 respectively. While credit cost stayed elevated at 1.8 per cent, PL Capital said management expects moderation ahead and kept its target price unchanged at ₹1,850, noting the stock had corrected 12 per cent over the past month.

JM Financial described the quarter as broadly in line, with AUM rising 21 per cent year on year and net interest income up 24 per cent, helped by a modest expansion in margins. It noted operating profit was impacted by a one-off labour-code related expense, while credit cost improved marginally to 1.78 per cent.

Although it trimmed its FY27 and FY28 earnings estimates by around 3 per cent due to potential pressure on margins from yield hardening, JM Financial upgraded the stock to add from reduce, saying downside looked limited at current valuations. It revised its target price to ₹1,720.

HDFC Securities also pointed to the strong business momentum and reflation in margins but persistently high credit costs. The brokerage said disbursement growth of 16 per cent year on year and 23 per cent quarter on quarter is likely to strengthen further in Q4 on the back of GST cuts and a better macro environment. However, it cautioned that valuations at around 3.8 times September-27 adjusted book value offer limited margin of safety and maintained an add rating with a revised target price of ₹1,730.

Nuvama Institutional Equities struck a more cautious tone, acknowledging strong growth in disbursals led by a revival in commercial vehicles and healthy pre-provision operating profit growth, but flagged sticky non-performing loans and rising credit costs. The brokerage said improvement in asset quality remains a key monitorable and maintained a hold call at ₹1,650 target price.

Published on February 3, 2026

Gift Nifty at 25,935 signals a gain of nearly 1000 points for Nifty at open, following the announcement of the historic India-US deal. Nifty futures on Monday closed at 25,142.

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, said while the imposition of a 50 per cent US The tariff disrupted a wide swathe of Indian exports, its direct impact on the earnings of India’s listed corporates was limited. India’s tariff-impacted goods export exposure to the US is skewed toward privately held MSMEs and low-margin manufacturing rather than large, listed firms. Consequently, the subsequent rollback in tariff rates is, by itself, unlikely to materially alter the earnings trajectory of Indian equities.

“Yet, the macroeconomic and strategic consequences of the episode have been far more significant. The tariff shock acted as a catalyst for reforms that may ultimately prove far more valuable than the relief from tariffs themselves. It accelerated rationalization of GST rates to protect domestic demand, pushed long-pending labor and compliance reforms to the forefront, and encouraged a deliberate diversification of India’s foreign-exchange reserves away from excessive dollar concentration. Most importantly, it forced India to seek deeper market access and geopolitical hedging through a landmark trade agreement with the European Union — opening a far larger, richer and more stable export market for Indian manufacturing and services,” he added.

Meanwhile, global stocks are also showing a strong rebound. Nikkei jumped over 3 per cent, Kospi nearly 5 per cent.

With the India–US treaty in place, that overhang is beginning to lift. The key shift is not incremental tariff relief, but the restoration of geopolitical and trade stability. As risk premia normalize, India once again looks investable to global capital — a high-growth, politically aligned, strategically important economy with deep domestic demand and improving external linkages to both the US and Europe, he further said.

Garima Kapoor, Deputy Head of Research and Economist at Elara Capital said: as per POTUS’s Truth Social post, the US and India have reached a trade deal, with the US lowering Reciprocal Tariff on India to 18%. “Our estimates indicate the policy implies the effective tariff rate on India post-deal is at 14.1%, if Russia-related tariffs are removed.” The 18% tariff brings the rate in line with India’s peers that have ~20% rates. Removal of Russian oil related penalty is likely to generate a positive tariff differential for India.”

“Indian equities, in that sense, have been priced in a geopolitical discount, that is now fading. The case for a catch-up rally lies less in near-term earnings upgrades and more in the reversal of capital-market pessimism that the tariff shock and diplomatic friction had previously created,” she said.

Analysts said post-Budget, this would trigger unwinding of short positions and boost India stocks.

Ponmudi R, CEO of Enrich Money, said: “This positive external trigger is helping markets look past the recent post-Budget volatility triggered by the Union Budget 2026–27, where the unexpected hike in STT on derivatives led to a sharp knee-jerk sell-off, increased trading costs, and pressure on F&O heavy and brokerage stocks. “As markets gradually absorb the Budget impact, yesterday’s rebound highlighted selective value buying in infrastructure, defense, and large-cap stocks. Overall, the trade deal offers a strong near-term sentiment boost, particularly for the export-oriented and manufacturing sectors, while continued government focus on capex provides steady underlying support for the broader market,” he said.

Published on February 3, 2026