Noida, May 11 (APAC Media): Shares of jewellery companies witnessed sharp selling pressure on Monday after Prime Minister Narendra Modi appealed to citizens to avoid unnecessary gold purchases and overseas spending in view of rising global uncertainties and pressure on India’s import bill.
The remarks triggered concerns over a possible slowdown in consumer demand for gold, leading to a broad decline in jewellery stocks on the domestic bourses.
Shares of Titan Company, Senco Gold, Kalyan Jewellers and other listed players fell between 6 per cent and 11 per cent during intraday trade.
Addressing a public gathering in Hyderabad on Sunday, Modi urged people to support the country’s economic stability by limiting discretionary imports. “At a time when the world is facing uncertainty and crude oil prices are rising, every citizen should think about the nation’s interest. If possible, avoid unnecessary gold purchases and reduce spending abroad,” the prime minister said.
Market analysts said the statement weighed heavily on investor sentiment as India remains one of the largest consumers and importers of gold globally. Any moderation in jewellery demand could directly impact sales growth and margins of organised retailers.
“At a time when global crude oil prices have surged from around $70 per barrel to nearly $126 per barrel amid escalating tensions in West Asia and disruptions around the Strait of Hormuz, it is important for citizens to act responsibly. I appeal to everyone to avoid unnecessary gold purchases and reduce non-essential spending abroad in the national interest,” PM Modi added.
Titan Company declined more than 7 per cent in early trade, while Senco Gold and Kalyan Jewellers also registered steep losses. Other jewellery counters, including PN Gadgil Jewellers and RBZ Jewellers, traded lower amid heightened selling pressure across the sector.
Analysts noted that the correction also coincided with weakness in the broader equity market due to rising crude oil prices and concerns over inflationary pressures. Higher gold prices in international markets have already affected affordability for retail buyers, especially in price-sensitive segments.
“Investors fear that government messaging combined with elevated bullion prices may delay discretionary purchases in the near term,” a Mumbai-based market expert said.
Despite Monday’s decline, jewellery stocks had rallied strongly over the past few months on expectations of robust wedding season demand and record-high gold prices boosting inventory valuations.
India imports a significant portion of its gold requirements, making the sector sensitive to currency movements, import duties and government advisories linked to trade and foreign exchange management.
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