Budget 2025 Impact: Can Kalyan Jewellers Bounce Back?

Kalyan Jewellers’ share price recently hit an all-time high of ₹795.40 but has since fallen by 37%. Experts believe the upcoming Union Budget 2025 could be a game-changer for the stock. The Indian government plans to increase customs duty on gold. This could drive gold prices up, benefiting Kalyan Jewellers due to its buffer stock. Consequently, the stock price might rise.

Investors should hold the stock with a strict stop loss at ₹480 and wait for a trend reversal. If the trend reverses, the stock could reach ₹595 per share. The stock is currently oversold and has support at the ₹500 mark, suggesting a possible recovery.

The government’s decision to tweak customs duties aims to shield citizens from inflation, ensure sufficient supplies of essential commodities, and encourage domestic manufacturing. The recent reduction in customs duty on gold led to a surge in imports but a decline in exports of finished goods.

The Budget 2025 holds significant potential to positively impact Kalyan Jewellers’ share price, making it a stock to watch closely.