Jewellery Stocks Slip Up To 5% After PM Modi Again Urges To Avoid Non-Essential Gold Purchases
Major jewellery stocks came under pressure on Tuesday after Prime Minister Narendra Modi appealed to citizens to avoid purchasing gold unless it was essential. The statement led to selling pressure across several listed jewellery companies during early trading. During the early trade, Titan Company shares declined almost 2% to Rs 5,015 compared to the previous close. Kalyan Jewellers India…
Jewellery stocks saw a significant drop of up to 5% on Tuesday following Prime Minister Narendra Modi's appeal for citizens to refrain from non-essential gold purchases. The statement prompted selling pressure across several listed jewellery companies during early trading. Titan Company shares fell almost 2% to Rs 5,015, while Kalyan Jewellers India and Thangamayil Jewellery experienced declines of up to 5.8% and 1.6% respectively, with their shares falling to Rs 578 and Rs 5,322.
BlueStone Jewellery and Lifestyle also traded lower, dropping up to 2.2% to Rs 796. Only Senco Gold showed positive movement, gaining up to 3.4% during the early trade. The decline in jewellery stocks came after Modi's message on Instagram, where he advocated for the principles of "Swadeshi" and "Vocal for Local", urging citizens to prioritize domestic choices and avoid unnecessary spending on gold.
Modi's appeal was part of a broader campaign to promote self-reliance and local consumption, with the aim of supporting India's journey towards becoming a developed nation by its 100th year of independence. Despite gold's significant role in Indian consumer behavior, particularly in wedding, festival, and family-related purchases, the market reacted with investor concerns over potential changes in gold consumption patterns and its impact on jewellery companies' demand.
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