The NSE saw a roughly 4% increase in Kalyan Jewellers shares as the US brokerage firm Citi confirmed its buy position on the counter, with a price objective of Rs 770, up from the previous goal of Rs 650. This marked the company's 52-week high of Rs 715.

Senco Gold and Goldiam International, two other jewelry companies, also reached their 52-week highs of Rs. 1,292.45 and Rs. 374, respectively. In the same sequence, the stocks had gains of 4% and 6%.

Citi's confidence in Kalyan Jewellers was based on improved demand patterns and a reduction in customs duties. Titan, a Tata Group stock, was likewise assigned a "Neutral" rating by the brokerage.

Finance Minister Nirmala Sithraman announced reductions in custom duties on gold and silver in the Union Budget 2024, with the aim of promoting domestic value addition in gold and precious metal jewelry within the nation. Customs charges on platinum were reduced to 6.4% and on gold and silver to 6%.

The decrease in customs duties on gold and silver prices has restrained the increase in the local gold price relative to global prices.

Palladium has gained 15% so far this week, while gold prices surged to an all-time high on Friday as the dollar declined amid expectations of a US interest rate decrease next week. For holders of foreign currencies, gold became less costly as the dollar dropped to a one-week low.