Shares of jewellery companies witnessed sharp selling pressure in trade after comments by Prime Minister Narendra Modi on reducing gold consumption triggered concerns over demand sentiment in the sector.
Stocks such as Kalyan Jewellers, Thangamayil Jewellery, Titan Company, Senco Gold and RBZ Jewellers declined sharply during the session, with some counters falling as much as 10%.
Kalyan Jewellers India Ltd fell over 7%, while Thangamayil Jewellery dropped nearly 10%. Titan Company slipped over 6%, Senco Gold declined more than 4%, and RBZ Jewellers also traded lower during the session.
The weakness in jewellery counters comes after Prime Minister Narendra Modi reportedly advised citizens to refrain from buying gold for a year and instead focus on productive investments and fuel conservation measures amid the current macroeconomic environment.
According to media reports, the Prime Minister also suggested measures such as reducing unnecessary fuel consumption, promoting work-from-home practices where possible and limiting non-essential travel.
The comments sparked fears that any slowdown in gold demand could impact jewellery retailers, especially at a time when gold prices are already trading near record highs. Investors appeared concerned that elevated gold prices combined with softer discretionary demand may affect sales growth and margins for jewellery companies.
The selling pressure was broad-based across listed jewellery stocks. Titan Company, the market leader in organised jewellery retail through its Tanishq brand, emerged among the top losers on the Nifty 50 index during the session.
Kalyan Jewellers and Senco Gold, which have been aggressively expanding store networks across India, also witnessed heavy profit booking after recent rallies.
Jewellery stocks have seen strong investor interest over the past year amid rising organised market share, festive demand and wedding season sales. However, analysts believe any moderation in gold purchases or discretionary spending sentiment could temporarily weigh on sector valuations.
The sharp correction also comes amid heightened volatility in gold prices globally, with investors closely tracking geopolitical developments, inflation trends and interest rate expectations.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice.