Highlights
- Sky Gold and Diamonds shares declined over 8% amid concerns around higher gold import duties.
- Jewellery stocks witnessed pressure after reports of a 15% hike in gold and silver import duty.
- Stock slipped despite earlier momentum and continued elevated volatility in precious metal counters.
Overview
Sky Gold and Diamonds Limited (NSE: SKYGOLD) came under significant selling pressure during Wednesday’s session, falling nearly 8.44% to around INR 435.65. The sharp decline followed broader weakness across jewellery and precious metal-related stocks after reports indicated a 15% increase in import duty on gold and silver.
The stock remained volatile during the session as investors reassessed the possible impact of higher import costs on margins, demand trends, and sector profitability. Rising raw material costs and uncertainty around consumer demand sentiment appeared to weigh on the counter.
Fundamental View
Sky Gold and Diamonds operates within the jewellery manufacturing and trading segment, making the company sensitive to fluctuations in gold prices and import-related policy changes. The proposed increase in import duty on gold and silver may raise procurement costs across the sector, potentially affecting operating margins and pricing dynamics.
For the quarter ended December 2025, the company reported consolidated total income of INR 1,77,512.44 lakh. Profit before tax stood at INR 10,613.21 lakh, while net profit came in at INR 8,053.54 lakh. Earnings per share for the quarter were reported at INR 5.20.
Despite healthy profitability in the latest reported quarter, investors appeared cautious due to the near-term uncertainty surrounding input costs and jewellery demand trends.
Technical View
Sky Gold and Diamonds shares are still trading above the 50-day SMA near INR 387.63, indicating that the broader trend structure remains positive despite the sharp correction. However, the stock witnessed aggressive intraday selling after recently touching higher levels.
The 14-day RSI dropped toward 50.13 after previously remaining in elevated territory, reflecting fading short-term momentum. Price action suggests volatility may remain elevated as traders react to sector-specific developments linked to gold pricing and import policy changes.
Key Technical Levels
- Immediate Support: INR 400.00–375.00
- Immediate Resistance: INR 460.00–490.00
Risks to Watch
- Higher gold import costs impacting margins
- Weak jewellery demand due to rising prices
- Elevated volatility in precious metal markets
- Policy-related uncertainty affecting sector sentiment
Summary
Sky Gold and Diamonds (NSE: SKYGOLD) declined sharply after concerns emerged around a reported 15% hike in gold and silver import duties. The development triggered selling pressure across jewellery stocks as investors evaluated the possible impact on costs and demand conditions. Although the company’s recent financial performance remained profitable, near-term sentiment may continue depending on policy clarity, gold price movement, and broader consumer demand trends.
FAQs
Why did Sky Gold and Diamonds shares fall today?
The stock declined after reports of higher gold and silver import duties impacted jewellery sector sentiment.
What were Sky Gold and Diamonds’ latest earnings figures?
The company reported net profit of INR 8,053.54 lakh with EPS of INR 5.20.
What are the important levels to watch in SKYGOLD stock?
Support is placed near INR 400.00–375.00 while resistance is seen around INR 460.00–490.00.