Jewellery stocks witnessed a sharp fall after the Prime Minister’s appeal to avoid gold purchases for a year triggered investor concerns. The unexpected statement led to heavy selling pressure across major listed jewellery companies in trading sessions.
Jewellery-related stocks witnessed a steep decline in trading after Prime Minister Narendra Modi urged citizens to avoid purchasing gold for weddings for one year. The statement triggered immediate concern among investors about a possible slowdown in consumer demand, leading to heavy selling pressure across the sector. Shares of leading companies fell sharply within hours of the announcement.
Major stocks hit hard in sell-off
Among the worst affected was Titan, which saw its stock drop by over 6% during the session before recovering slightly. Other jewellery players also came under pressure, with Kalyan Jewellers slipping around 8% and Senco Gold declining by nearly 9–10%. The broad-based fall reflected fears that discretionary demand in the jewellery segment could weaken in the near term.
Economic reasoning behind the appeal
The Prime Minister’s message was linked to wider macroeconomic concerns, including rising crude oil prices, global uncertainty, and pressure on India’s foreign exchange reserves. Since both gold and oil are major import items paid for in US dollars, higher demand increases pressure on the rupee. The appeal aimed at encouraging reduced non-essential consumption to help stabilise external economic conditions.
Strong earnings overshadowed by future uncertainty
Interestingly, the sell-off came at a time when jewellery companies had reported strong quarterly earnings. Titan posted a profit of ₹1,179 crore, while Kalyan Jewellers nearly doubled its profit to ₹409.5 crore in the March quarter. Despite robust financial performance, investors remain cautious about whether the proposed slowdown in gold buying could impact demand during the upcoming festive and wedding season.
