Kalyan Jewellers shares tumbled nearly 6% to trade at Rs 415.25 apiece, while Titan shares dropped nearly 3% to trade at Rs 4,330 apiece. MMTC shares, meanwhile, skyrocketed around 16% to Rs 71.64 apiece on Friday.
Tons of the precious metals are now stuck at customs because a formal government order has not yet been issued authorising the bullion imports, trade sources cited by Reuters said. Without fresh imports, Indian jewellers could face supply shortages as the country relies on imports to meet nearly all its demand.
Also read: Indian banks halt gold, silver imports amid delay in government clearance, sources say
Meanwhile, market rumours suggested that MMTC was allowed to import gold, while all other applications were rejected. This led to the massive 16% rally in the share price of the PSU company, which is involved in trading a range of minerals, precious metals, gems and jewellery.
Weak demand from the Indian market due to import restrictions can also weigh on global gold and silver prices, while narrowing India’s trade deficit and supporting the rupee, Reuters further reported. This comes as the rupee continues to rebound after a sharp decline against the US dollar in March, crossing the historic milestone of 95.
DGFT’s order awaited
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, normally issues an order authorising bullion imports at the beginning of the financial year and lists banks authorised by the RBI to import gold and silver. The previous order, issued in April 2025, has now expired, and banks are still awaiting a fresh directive from DGFT.Also read: Gujarat Gas rises 7% after Nomura upgrade. Is the Iran war a buying opportunity?
With no fresh DGFT order issued for banks, more than five tons of gold are stuck without customs clearance, a Mumbai-based bullion dealer at a private bank told Reuters. Uncertainty over the timing of the DGFT order has led banks to halt new import orders from overseas suppliers, the dealer said. Around 8 tons of imported silver are also stuck without customs clearance, the report added.
“There is a need to bring clarity and ensure imports resume,” Surendra Mehta, Secretary at the India Bullion and Jewellers Association, was quoted as saying by Reuters. Notably, this comes just before markets expect heightened demand on Akshaya Tritiya.
The Economic Times couldn’t independently verify the report.
(With inputs from agencies)
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