Shares of jewellery companies came under pressure in early trade on Monday after Prime Minister Narendra Modi urged citizens to avoid purchasing gold jewellery for one year amid concerns around foreign exchange outflows and global uncertainties.
Titan Company, Kalyan Jewellers, Senco Gold and PN Gadgil Jewellers were among the major losers in morning trade, while broader sentiment across the jewellery retail segment remained weak.
According to reports, PM Modi appealed to citizens to temporarily avoid buying gold jewellery as part of broader efforts aimed at conserving foreign exchange and reducing pressure from rising imports. The comments also came alongside calls for fuel conservation and reduced non-essential spending amid geopolitical uncertainties.
Titan Company shares fell over 3.5% in early trade to ₹4,350.40. Kalyan Jewellers declined 3.2% to ₹411, while Senco Gold dropped nearly 4.5% to ₹349. PN Gadgil Jewellers also slipped 3.7% to ₹701. Shares of RBZ Jewellers traded lower by around 1.5%.
The decline comes despite strong long-term structural demand trends for organised jewellery retailers in India. Over the past few years, listed jewellery companies have benefited from premiumisation, wedding demand and continued shift from unorganised to organised players.
However, analysts said the Prime Minister’s comments triggered immediate concerns over near-term consumer sentiment, especially at a time when gold prices are hovering near record highs globally.
Titan, which operates the Tanishq jewellery chain, remains India’s largest organised jewellery retailer, while Kalyan Jewellers and Senco Gold have been expanding aggressively through store additions across domestic and international markets.
Market participants will now closely monitor whether the comments materially affect demand trends or remain a temporary sentiment-driven trigger for jewellery stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.