Shares of PC Jeweller rose 6% in early trade on Wednesday, bucking a wider sell-off in Indian equities.
The rally followed the company's announcement that it had repaid all outstanding debt under a settlement agreement with two consortium banks.
The move represents a significant milestone in the firm's efforts to emerge from financial distress and operate as a debt-free entity.
The stock, which trades as a penny share below ₹10, saw buying interest return despite cautious sentiment across the broader market.
Investors appear to be rewarding the reduction in balance-sheet risk, viewing the debt clearance as a foundational step toward stabilizing operations.
The price action underscores how specific corporate developments can drive outperformance even in risk-off environments.