India becomes second-largest diamond jewellery market with 12% global share, overtakes China and Japan

The Indian gems and jewellery sector is experiencing a significant demand surge, particularly in diamond jewellery, driven by demographic shifts and evolving consumer preferences. This growth is further supported by the increasing acceptance of lab-grown diamonds, offering a wider price point for consumers.

Maintain a bullish bias on Indian jewellery stocks, focusing on companies with strong retail presence and manufacturing capabilities, with a stop-loss below recent support levels.

For Indian markets, this story mainly matters for PCJEWELLER and the Gems and Jewellery, Retail pocket. The current signal is bullish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Prominent jewellery retailer, stands to gain from the expanding diamond jewellery market. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •India is now the world’s second-largest diamond jewellery market with a 12% global share.
• •Growth is driven by rising incomes and strong demand from Gen Z and millennials.
• •Natural diamonds remain dominant, but lab-grown diamonds are gaining traction as a lower-cost alternative.
• •Daily wear and self-purchase trends are reshaping consumption patterns.
• •Risk flag: Volatility in diamond prices (natural and lab-grown)