Shares of India’s listed jewellery companies extended their decline for a second consecutive session on May 12, with Titan Company, Kalyan Jewellers, Senco Gold, and peers continuing to bleed as the market digested the full implications of Prime Minister Narendra Modi’s appeal to avoid gold purchases for weddings for one year. The two-day sell-off has collectively wiped out nearly ₹35,000 crore in cumulative market capitalisation across the sector.
Titan shares were down 1% on Tuesday after falling 7% on Monday. Kalyan Jewellers declined another 3% following Monday’s 9% crash. Senco Gold, which had fallen 8% on Monday, was down a further 1.5% on Tuesday.
The trigger: What PM Modi said
Speaking at a public event in Hyderabad over the weekend, PM Modi appealed to citizens to avoid purchasing gold for weddings for a period of one year. The appeal was part of a broader austerity message that also included re-introducing work from home culture and avoiding unnecessary domestic and international travel — all framed as measures to conserve foreign exchange at a time when crude oil at $105 per barrel is severely straining India’s import bill.
Two days of damage — Monday’s sell-off in numbers
Monday’s session was severe across the sector. Titan ended 7% lower. Kalyan Jewellers fell over 9%. Thangamayil and PN Gadgil each declined 6% and 8% respectively. Senco Gold ended with losses of 8%. The cumulative ₹35,000 crore market cap erosion in a single session was one of the sharpest single-day sector-level wealth destructions seen in Indian markets in recent memory, driven entirely by a single voluntary appeal with no accompanying policy action.
Gold imports: A crisis already underway
The sell-off comes against a backdrop where India’s gold import pipeline is already under stress. India’s gold imports in April may fall to their lowest level in three decades, according to a Reuters report citing government sources, after banks were hit by an unexpected tax demand. Indian customs began demanding a 3% integrated GST on gold imports, prompting banks to halt shipments. India is the world’s second largest gold consumer and had imported an average of 60 tonnes per month during FY26 at a monthly cost of approximately $6 billion. Jewellers had begun sourcing imported gold from the India International Bullion Exchange, though volumes remained small.
The combination of the customs GST demand halting bank-led imports and PM Modi’s voluntary appeal creates a dual demand-side and supply-side squeeze on the gold jewellery ecosystem simultaneously — a far more challenging environment for jewellery retailers than either development alone would create.
What do the Q4 results say?
The irony of the sector sell-off is that both Titan and Kalyan Jewellers reported strong Q4 FY26 results just days before the sell-off. Titan’s fourth quarter revenue came in above expectations, though margins declined year-on-year and gross margins narrowed — a combination that left the stock below street expectations on profitability even as revenues beat. The company flagged awareness of macro volatility and the fragile geopolitical situation in its results commentary. Kalyan Jewellers delivered stronger numbers — revenue grew 66% year-on-year in Q4 with margin expansion — yet the stock has now erased all its post-results gains and more.
The disconnect between strong reported results and sharply falling stock prices reflects the market’s forward-looking fear — that FY27 demand, particularly in the critical wedding season, could be materially disrupted by a combination of voluntary behavioural change, potential import duty hikes, and elevated gold prices that are already making purchases expensive.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a registered financial advisor before making any investment decisions. Business Upturn does not hold any position in the securities mentioned.