Kalyan Jewellers Shares: Rs 30,000 Crore Wiped Out in 11 Days – Check Details
Kalyan Jewellers
Kalyan Jewellers Shares: ₹30,000 Crore Wiped Out in 11 Days – When Will the Decline Stop?
Kalyan Jewellers, one of India’s largest jewelry retailers, has been facing a dramatic plunge in its stock price over the past 11 days, with a jaw-dropping ₹30,000 crore wiped off its market value.
The company’s shares, which had soared to new heights at the start of the year, have now been caught in a downward spiral, leaving investors wondering: when will this decline end?
The stock’s performance has raised serious concerns among traders and market watchers, with some questioning whether this drop signals the end of the rally, or if it is just a temporary correction.
Kalyan Jewellers in the Oversold Zone
One of the key technical indicators suggesting that the stock is in an oversold zone is its Relative Strength Index (RSI).
The RSI, which measures the speed and change of price movements, currently stands at a low 21. In technical analysis, an RSI below 30 is generally considered to indicate that a stock is oversold, meaning that it may be due for a rebound.
While this suggests that the stock has been excessively punished in the short term, it also raises the question: will this be a quick recovery or is the stock set for more volatility?
The RSI level of 21 indicates that Kalyan Jewellers’ shares are in deep oversold territory, and market participants are increasingly concerned about the ongoing price correction.
Investors who are watching these indicators closely may be asking whether now is the time to step in and capitalize on a potential rebound, or if there is more pain ahead.
Continuous Selling Pressure: What’s Behind the Decline?
The sell-off in Kalyan Jewellers shares has been relentless, with the stock breaking down for three consecutive trading days.
Despite hitting a record high just days earlier, the stock has seen a steady erosion in its value. On January 2, 2025, Kalyan Jewellers hit an all-time high of ₹794.60, a peak that many investors had hoped would continue to rise.
However, after reaching that level, the stock has been on a downward trajectory, breaking crucial support levels and sending shockwaves through the investor community.
The primary reason behind this sharp fall appears to be profit booking. The stock had an extraordinary rally in 2024, rising by more than 116% during the year.
It went from being below ₹70 just three years ago to soaring close to ₹800 at the beginning of 2025. This meteoric rise led many investors to take profits off the table, which could explain the accelerated selling pressure.
In addition to profit booking, broader macroeconomic factors and market-wide corrections may also be contributing to the decline.
Rising inflation, global economic uncertainty, and volatility in other sectors could have created a more cautious investment environment. As investors seek safer assets, high-growth stocks like Kalyan Jewellers may be seeing significant outflows.
As of the latest trading session, Kalyan Jewellers closed at ₹501.65 on the Bombay Stock Exchange (BSE), marking a decline of 6.93% on the day.
The stock reached an intraday low of ₹498.85, down 7.45%. This drop is part of a larger trend that has seen the company’s market capitalization shrink from ₹82,000 crore on January 2, 2025, to below ₹52,000 crore in less than two weeks. In a little over a week, investors have lost ₹30,000 crore in market value.
What Do Brokerages Say About Kalyan Jewellers?
Despite the ongoing decline, some brokerages remain optimistic about Kalyan Jewellers in the longer term. However, the current bearish trend has many analysts recalibrating their outlook.
Chandan Taparia, an expert from Motilal Oswal Financial Services, noted that Kalyan Jewellers is showing lower tops and lower bottoms on its price chart, signaling a continuation of the downward trend.
The stock has repeatedly failed to breach the ₹780–₹795 resistance zone, and after multiple attempts, it has begun to move downward.
Taparia suggests that further profit booking could push the stock lower, with possible support at ₹530. If the stock falls below that level, Taparia warns that it could head towards ₹490–₹495.
Despite the short-term concerns, some global financial institutions, such as HSBC and Citi, have maintained a positive outlook on the stock.
Both have set a target price of ₹810 for Kalyan Jewellers, indicating that they believe the company’s long-term prospects remain strong.
This suggests that while the stock is facing turbulence now, it could experience a recovery in the future, provided the broader market conditions improve and investor sentiment stabilizes.
The 1-Year Price Movement: A Rollercoaster Ride
Looking back over the past year, Kalyan Jewellers has been on a rollercoaster ride in terms of its stock performance.
On February 1, 2024, the stock was trading at ₹322.05, marking a one-year low. However, over the course of 2024, the stock surged by nearly 147%, reaching its peak of ₹794.60 on January 2, 2025.
This extraordinary growth caught the attention of investors, but the recent correction has been just as dramatic, with the stock now down by more than 36% from its January high.
This volatility underscores the risk involved in high-growth stocks, especially in sectors like jewelry, which can be highly sensitive to economic cycles.
While Kalyan Jewellers posted impressive returns last year, it also demonstrates the potential for steep declines, especially when profit-taking becomes widespread.
What’s Next for Kalyan Jewellers?
The question now on many investors’ minds is: where does Kalyan Jewellers go from here? The stock’s RSI suggests that it may be due for a bounce, but technical indicators also show that the stock may have further to fall in the short term.
If the selling pressure continues, we could see further losses, with potential downside targets around ₹490–₹495 as suggested by some analysts.
On the other hand, if Kalyan Jewellers can weather the storm and stabilize around current levels or higher, the long-term outlook could be favorable, particularly if the broader market sentiment improves.
Brokerages like HSBC and Citi see potential in the company and have set a target price of ₹810, which could indicate confidence in its future growth prospects.
In the short term, investors should keep an eye on key support levels and watch for signs of stabilization. A further breakdown below ₹500 could signal deeper losses, while a recovery above ₹530 could signal that the worst is over.
The coming days will be crucial in determining whether Kalyan Jewellers can break free from its current downward spiral or if the stock will continue its decline.
Final Remarks
Kalyan Jewellers has experienced a dramatic shift in its fortunes over the last 11 days, with a significant loss in market value.
The stock remains in an oversold condition, but the ongoing selling pressure raises concerns about further declines.
Investors must carefully assess the broader market environment, the company’s financial health, and technical indicators before making any decisions.
While short-term pain seems inevitable, the long-term outlook for Kalyan Jewellers may still hold promise, provided it can stabilize and attract renewed investor confidence.
