Tue Jan 21 17:24:46 IST 2025: ## Kalyan Jewellers Shares Plunge Amidst Allegations and Budget Concerns

**MUMBAI, INDIA –** Kalyan Jewellers’ share price continued its downward spiral on Tuesday, dropping as much as 5.67% to ₹501.00 on the BSE. The decline follows a month of heavy losses, exceeding 34%, fueled by a confluence of factors.

The sell-off began earlier this month after social media allegations surfaced regarding potential misconduct by fund managers at Motilal Oswal Asset Management Company (AMC) concerning Kalyan Jewellers’ shares. Both Kalyan Jewellers and Motilal Oswal AMC have vehemently denied these allegations, which include claims of bribery.

Adding to investor concerns is the upcoming Union Budget 2025. Speculation of a potential increase in the essential customs duty on gold has fueled further selling. Analysts predict that such a hike would increase gold prices, impacting jewellery makers’ costs. While this could ultimately benefit established brands like Kalyan Jewellers due to existing inventory, the immediate market reaction has been negative.

Adding to the pressure, promoters Seetharam Trikkur Kalyanaraman and Ramesh Trikkur Kalyanaraman have pledged significant portions of their shares to secure loans from various financial institutions. This has further unsettled investors.

Despite a brief rebound on Monday, analysts remain cautious, with some suggesting the stock needs to sustain above ₹480 to avoid further decline. Others believe a closing price above ₹580 would signal a bottoming out.

Despite the recent slump, Kalyan Jewellers shares are still up 43% year-on-year, having reached a high of ₹794.60 on January 2, 2025. However, the current volatility underscores the risks associated with the stock. Investors are advised to exercise caution and consult with financial advisors before making investment decisions.

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