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Gold Stocks Crash Up to 12% After PM Modi's Appeal to Defer Purchases

Shares of major jewellery companies like Titan, Kalyan Jewellers, and PN Gadgil plunged up to 12% after PM Modi appealed to citizens to avoid non-essential gold purchases for one year. The appeal aims to conserve foreign exchange reserves amid the ongoing West Asia crisis and high crude oil prices. PM Modi also urged austerity measures including conserving fuel, avoiding travel, and promoting domestic tourism. Equity benchmarks Sensex and Nifty fell over 1% as US-Iran tensions kept crude oil above $100 per barrel.

Key Points: Gold Stocks Plunge 12% on PM Modi's Appeal

  • PM Modi urges citizens to defer non-essential gold purchases for one year
  • Titan shares plunge 8%, Kalyan Jewellers down 10%
  • Appeal aims to conserve foreign exchange reserves amid West Asia crisis
  • Equity markets also fall over 1% on US-Iran tensions
2 min read

Titan, Kalyan Jewellers, other gold-linked stocks plunge up to 12 pc after PM Modi's appeal

Titan, Kalyan Jewellers, and other gold-linked stocks fall up to 12% after PM Modi urges citizens to defer non-essential gold purchases to conserve foreign exchange.

"In the present circumstances, saving foreign exchange has become equally important for the nation. - PM Narendra Modi"

Mumbai, May 11

Shares of jewellery companies witnessed sharp selling pressure on Monday after Prime Minister Narendra Modi urged citizens to defer non-essential gold purchases as part of broader austerity measures aimed at conserving foreign exchange reserves amid the ongoing West Asia crisis.

Investors rushed to trim exposure to gold-linked counters amid fears that the Prime Minister's appeal could weigh on jewellery demand in the coming months.

Shares of Titan Company plunged as much as 8.02 per cent to hit an intraday low of Rs 4,151.40 in early trade.

Meanwhile, Kalyan Jewellers India shares dropped 10 per cent to Rs 382.20, while PN Gadgil Jewellers stock tumbled 8.32 per cent to Rs 668.05.

Shares of Sky Gold and Diamonds were trading 12.24 per cent lower at Rs 475, emerging among the worst-hit stocks in the segment.

Recently listed BlueStone Jewellery and Lifestyle declined 5.92 per cent to Rs 474.70.

In addition, Senco Gold slumped 11 per cent to Rs 325.25, while Rajesh Exports fell 4.63 per cent to Rs 116.15.

The sharp decline in jewellery counters came after PM Modi, while addressing a BJP public meeting in Secunderabad on Sunday, appealed to citizens to avoid non-essential gold purchases for the next one year to help reduce pressure on India's foreign exchange reserves.

"In the present circumstances, saving foreign exchange has become equally important for the nation," he said.

Highlighting India's dependence on imported fuel, PM Modi stressed the need for austerity measures, including conserving fuel, reducing avoidable expenditure and prioritising domestic consumption.

He also called for the revival of Covid-era work practices such as work from home, online meetings and virtual conferences to reduce unnecessary travel and fuel consumption.

PM Modi further urged citizens to avoid overseas vacations and destination weddings while promoting domestic tourism and local spending.

Meanwhile, equity benchmarks Sensex and Nifty traded over 1 per cent lower in morning trade on Monday after the US and Iran failed to reach an agreement that could have eased concerns over disruptions in the Strait of Hormuz, keeping crude oil prices elevated above the $100-per-barrel mark.

- IANS

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Reader Comments

R
Rahul R
PM ki baat toh sahi hai, par aise sudden announcements se market mein panic ho jata hai. Mera Titan ka stock aaj 8% gira hai! Middle class investors ko bada loss hua. Agli baar koi announcement aaye toh pehle se hint de dijiye na. đŸ˜€
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James A
Interesting perspective from an Indian leader. In the US, we don't usually see government appeals directly affecting commodity stocks like this. But I understand the context—India imports a massive amount of gold, and with crude prices above $100, forex reserves need protection. The market reaction seems a bit overblown though, almost 12% fall for some stocks seems excessive.
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Ananya R
Look, I get the national interest angle, but this is a classic case of "government tells people to do something and markets overreact." Gold is deeply embedded in Indian culture—you think aunties are going to skip buying mangalsutra for their daughters' weddings because of an appeal? The demand will bounce back within a quarter. Meanwhile, good opportunity for long-term investors to buy Titan at a discount! 🏆
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Siddharth J
Respectfully, this is a flawed policy approach. Instead of appealing to citizens to stop buying gold, why not reduce import duties on crude oil or incentivize dollar inflows through other means? Gold purchases by individuals don't directly harm the economy—they're savings in another form. Also, this kind of statement creates unnecessary volatility in stock markets. A more measured approach would have been better. đŸ€”
K
Kavya N

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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