Demand for gold jewellery is expected to remain an important driver for the sector, with the September‑quarter (Q2 FY27) business updates of several listed jewellers reinforcing optimism about demand. The festive season is already underway, with Navratri in progress, while Diwali, Dhanteras and the wedding season lie ahead. Gold and jewellery stocks are likely to remain in focus as the yellow metal holds cultural and emotional significance for Indian households, particularly during festivals and weddings.

Business updates for the September quarter (Q2 FY27) from several listed jewellers have reinforced optimism about demand, with companies also expressing confidence in the upcoming festive and wedding season. However, this year’s festive period comes with a few additional factors for investors to consider. Gold prices have corrected from their August highs and remain volatile. Rising inflation could weigh on household budgets, while Prime Minister Narendra Modi’s appeal to defer gold purchases for a year could influence consumer buying decisions.

In addition, the shift in the festive calendar has moved some demand from Q2 into Q3 compared with last year, making the October‑December quarter particularly important for jewellery companies. Gold prices in the national capital fell for the third consecutive session on Wednesday, declining by ₹1,800 to ₹1,50,800 per 10 grams for 99.9% pure gold, inclusive of taxes, according to the All India Sarafa Association. Prices stood at ₹1,52,600 per 10 grams in the previous session.

Silver prices also extended their decline, falling ₹5,000 to ₹2.21 lakh per kilogram from the previous close of ₹2.26 lakh per kilogram. The latest declines add to the correction in domestic bullion prices from their August highs. Gold has seen bouts of volatility in recent sessions, with a stronger rupee adding to the pressure on domestic prices. Traders said a stronger rupee makes dollar‑priced bullion cheaper to import, weighing on domestic prices.

Rising inflation could add to the pressure on household budgets during the festive season. India's retail inflation rose to 5.54% in September 2026 from 4.83% in August, while food inflation climbed to 7.74%, according to government data. Higher living costs could make consumers more cautious about discretionary spending, including jewellery purchases. However, wedding‑related buying and traditional demand during festivals could provide some support to the sector.

Several listed jewellery companies reported healthy year‑on‑year growth in their Q2 FY27 business updates, despite some moderation in demand towards the end of the quarter as the festive calendar shifted into Q3. Titan's jewellery business grew 21% year‑on‑year, Kalyan Jewellers' India revenue rose 27%, Senco Gold's revenue increased 31%, and PC Jeweller reported 28% growth in consolidated revenue. Jewellery companies remain optimistic about the October‑December quarter, with Diwali, Dhanteras and the wedding season expected to support demand.