Jewellery Stocks Fall After PM Modi Urges Citizens To Avoid Gold Purchases

Shares of major jewellery companies fell sharply on Monday after Prime Minister Narendra Modi appealed to citizens to avoid non-essential gold buying to help conserve the country’s foreign exchange reserves.

The statement, made during a BJP event in Secunderabad on Sunday, triggered heavy selling across gold-related stocks as investors anticipated weaker consumer demand in the jewellery sector.

Titan Company shares declined more than 8 per cent during early trade to touch Rs 4,151.40.

Kalyan Jewellers India dropped 10 per cent to Rs 382.20, while PN Gadgil Jewellers slipped over 8 per cent to Rs 668.05.

Sky Gold and Diamonds emerged among the biggest losers, falling 12.24 per cent to Rs 475. Newly listed BlueStone Jewellery and Lifestyle also traded lower, declining nearly 6 per cent. Shares of Senco Gold dropped 11 per cent, while Rajesh Exports lost over 4 per cent.

During his address, PM Modi said conserving foreign exchange had become important under the current circumstances. He also stressed reducing fuel consumption, avoiding unnecessary spending and supporting domestic products and tourism.

The Prime Minister further encouraged practices such as work from home, virtual meetings and reduced travel to lower fuel usage. He also advised people to avoid overseas holidays and destination weddings.

The decline in jewellery stocks came as broader markets remained under pressure due to continued uncertainty over the US-Iran situation and rising crude oil prices, with both Sensex and Nifty trading more than 1 per cent lower in morning trade.

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