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Shares of Kalyan Jewellers India Ltd have continued to decline despite the company denying rumors of IT raids; Why is the stock falling?
Kalyan Jewellers Share Price
Shares of Kalyan Jewellers India Ltd have continued to decline despite the company denying rumors of IT raids and allegations of bribing fund managers. The stock had started 2025 on a high note, reaching an all-time high on January 2, but has mostly been on a downward trend since then, falling in 10 out of 13 sessions this year.
On Friday, the stock dropped 6.63%, reaching a day’s low of Rs 503.25. This marks a 36.66% decline from its record high of Rs 794.60. The stock has fallen in four out of five sessions this week, following a five-session losing streak last week.
From a technical perspective, Kalyan Jewellers remains in “oversold” territory, with its Relative Strength Index (RSI) currently at 21. An RSI below 30 indicates that the stock is oversold.
As of January 2, Kalyan Jewellers had a market capitalization exceeding Rs 82,000 crore, but it has now dropped to Rs 50,000 crore. Additionally, the stock remains under the Futures & Options (F&O) ban, meaning no new positions can be initiated.
The company recently addressed rumors of IT raids and bribery. During an earnings call, Kalyan Jewellers denied any raids and labeled the bribery allegations as “absurd.” Ramesh Kalyanaraman, executive director, emphasized that the company has always maintained a high level of integrity and transparency in its business operations. He also clarified that no raids had occurred, stating that inventory levels are audited thoroughly and the company has repaid around Rs 450 crore of debt over the last 18 months, in addition to a Rs 170 crore dividend payout. Kalyanaraman also dismissed rumors about purchasing an aircraft, clarifying that the company had no such plans and that it only owns a helicopter, which is not for sale.
Regarding the stock’s future prospects, Kalyan Jewellers is currently trading at a six-month low. Riyank Arora, a technical analyst at Mehta Equities, noted that the stock is approaching a key support level of Rs 515, which could provide an opportunity for a rebound. Arora suggested that the stock could rise towards Rs 560–570 in the near term, supported by the oversold conditions indicated by an RSI of 22. He advised a disciplined approach with a stop loss near Rs 510 to manage risk effectively, suggesting a favorable risk-reward ratio for short-term traders.
Kalyan Jewellers is a constituent of the NIFTY 500 index. Despite the recent decline, data from the BSE shows that the stock has delivered a positive return of 39% over the past year. Over the past two and three years, Kalyan Jewellers shares have provided multibagger returns of 320% and 626%, respectively.
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