In a move aimed at boosting domestic manufacturing and enhancing export competitiveness, the Indian government announced a reduction in customs duties on a range of products, including gold, silver, and critical minerals, on Tuesday. The policy shift is designed to lower input costs, cut smuggling, and stimulate value addition.

The impact on the jewellery sector was immediate and significant. Jewellery stocks continued their upward momentum for a second straight day on Wednesday as investors responded positively to the reduced customs duties. The reduction is expected to lower domestic prices and potentially increase demand.

Kalyan Jewellers India saw its stock price soar by an impressive 15%, reaching a record Rs.633.35 per share. Motisons also benefited, with its shares climbing 7% to Rs.165.75 each.

In addition, shares of RBZ Jewellers and PC Jeweller hit the 5% upper circuit limit, while Thangamayil Jewellery's stock increased by 3.5% today, following an 8% rise in the previous session. Titan’s shares also saw a 2.5% gain. 

The positive reaction underscores the market's optimism about the potential for increased demand and profitability in the jewellery sector.