Shares of major jewellery companies witnessed sharp declines on Monday after Prime Minister Narendra Modi urged citizens to postpone gold purchases and avoid non-essential foreign travel for one year to help conserve foreign exchange amid the ongoing West Asia crisis.
The appeal triggered heavy selling across jewellery and bullion-related stocks, with investors fearing a potential slowdown in discretionary spending and gold demand.
Sky Gold And Diamonds Ltd plunged 12.24 per cent, while Senco Gold Ltd dropped 11 per cent on the BSE. Kalyan Jewellers fell 9.99 per cent, Thangamayil Jewellery declined 9.79 per cent and Titan Company slipped 8 per cent. Shares of Tribhovandas Bhimji Zaveri Ltd and PC Jeweller Ltd also dropped 6.83 per cent and 5.67 per cent, respectively.
The broader market also came under pressure, with the BSE Sensex falling 1,082.40 points to 76,243.56 in morning trade, while the Nifty 50 declined 309.45 points to 23,865.10.
Addressing a BJP rally in Hyderabad on Sunday, Modi appealed to citizens to use fuel judiciously and reduce foreign exchange outflows amid the escalating geopolitical tensions in West Asia.
The prime minister suggested measures such as reducing petrol and diesel consumption, using metro rail services, opting for carpooling, increasing the use of electric vehicles, relying more on railways for parcel movement and adopting work-from-home practices wherever possible.
He also stressed the need to postpone gold purchases and non-essential foreign travel for a year to reduce pressure on India’s import bill and conserve foreign exchange reserves.
V K Vijayakumar said the appeal was part of a broader crisis-management strategy to tackle the current account deficit caused by soaring crude oil prices.
“This austerity call may have a mildly negative impact on economic growth in FY27. Sectors linked to petroleum, fertilisers, gold, air travel and hospitality are likely to face sentiment-driven pressure,” he said.
Jateen Trivedi said the appeal should be viewed in the context of India’s macroeconomic stability and import management.
“India is one of the world’s largest gold importers, and high gold imports during periods of elevated crude prices and geopolitical uncertainty increase pressure on the trade deficit and the rupee,” he said.
He added that while gold remains deeply embedded in India’s cultural and investment landscape, the prime minister’s remarks could temporarily affect discretionary jewellery purchases and weigh on sentiment in the bullion sector.
