Jewellery Stocks Slide Up to 10% After PM Modi Urges Delay in Gold Purchases

Shares of major jewellery companies tumbled sharply on Monday, with some dropping up to 10%, after Prime Minister Narendra Modi called on Indians to postpone gold purchases and foreign travel for a year to conserve foreign exchange reserves.

Company, o Gold, and other listed jewellery players bore the brunt of the selling pressure following the Prime Minister’s remarks delivered on Sunday at a public event at the Parade Grounds in Hyderabad. Addressing the gathering, PM Modi emphasised the need to strengthen the economy amid current challenges. “We have to save foreign exchange by any means,” he said, urging citizens to defer non-essential expenditures involving foreign currency, particularly gold buying and overseas travel. Gold has traditionally been a high-import item for India, significantly impacting the country’s current account balance. The Prime Minister’s appeal is seen as a direct call to reduce import demand for the yellow metal. Market analysts noted that the sharp decline in jewellery stocks reflects investor concerns over a potential slowdown in domestic demand. Titan, the market leader, led the fall, while smaller players like Senco Gold also witnessed heavy selling. This development comes as the government continues to monitor external sector vulnerabilities and looks for measures to support macroeconomic stability. Investors will be closely watching for any official clarification or policy follow-up in the coming days.