MMTC Surges 16% as Gold Import Chaos Drags Kalyan, Titan
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- Kalyan Jewellers shares tumbled nearly 6% to Rs 415.25 and Titan fell about 3% to Rs 4,330, while MMTC rallied roughly 16% to Rs 71.64 on Friday as a stalled bullion import order reshuffled the sector.
- More than five tons of gold and around eight tons of silver are stuck at customs because the Directorate General of Foreign Trade (DGFT) has not issued a fresh authorisation for banks to import bullion, a Mumbai-based private bank dealer told Reuters.
- The previous DGFT order, issued in April 2025, has expired, leaving banks halting new import orders from overseas suppliers until a new directive is published; the DGFT normally lists RBI-authorised banks at the start of each financial year.
- Market rumours that MMTC was the sole entity allowed to import gold while all other applications were rejected fuelled the PSU's 16% jump; MMTC trades in minerals, precious metals, gems and jewellery.
- India Bullion and Jewellers Association Secretary Surendra Mehta said "there is a need to bring clarity and ensure imports resume," warning of supply shortages just as markets expect a demand surge on Akshaya Tritiya.
- India depends on imports to meet nearly all of its gold and silver demand, so prolonged restrictions could create jeweller shortages while also weighing on global bullion prices, narrowing India's trade deficit and supporting the rupee, which has rebounded past 95 against the dollar after a March slump.
Why it matters: Over five tons of gold and eight tons of silver are physically stranded at Indian customs with no import authorisation days before Akshaya Tritiya, a peak jewellery-buying festival, exposing jewellers like Kalyan and Titan to supply risk while handing MMTC — the only company rumoured to have received clearance — a 16% rally. The disruption ties directly to the rupee's push past 95 per dollar and to global gold and silver prices.
