Shares of jewellery companies faced significant selling pressure following Prime Minister Narendra Modi’s call for citizens to postpone non-essential gold buying to conserve foreign exchange reserves amidst the West Asia crisis. Investors reacted by reducing exposure to gold-related stocks, concerned about potential impacts on jewellery demand in the upcoming months. Titan Company saw a sharp decline of 8.02%, hitting an intraday low of Rs 4,151.40 early in the trading session.
Kalyan Jewellers India witnessed a 10% drop to Rs 382.20, while PN Gadgil Jewellers’ stock fell by 8.32% to Rs 668.05. Sky Gold and Diamonds shares were down by 12.24% at Rs 475, ranking among the most affected stocks in the sector. BlueStone Jewellery and Lifestyle, a recently listed company, also experienced a decline of 5.92% to Rs 474.70. Additionally, Senco Gold slumped by 11% to Rs 325.25, and Rajesh Exports fell by 4.63% to Rs 116.15.
The decrease in jewellery company shares followed PM Modi’s appeal during a BJP public meeting in Secunderabad, where he advised citizens to refrain from non-essential gold purchases for a year to alleviate pressure on India’s foreign exchange reserves. Stressing the importance of saving foreign exchange, PM Modi emphasized austerity measures, including conserving fuel, cutting unnecessary expenses, and prioritizing domestic consumption. He also advocated for the continuation of Covid-era practices like working from home and virtual meetings to reduce travel and fuel consumption.
Meanwhile, the stock market reflected concerns over the US-Iran situation, with equity benchmarks Sensex and Nifty trading over 1% lower on Monday morning. The failure to reach an agreement between the US and Iran heightened worries about disruptions in the Strait of Hormuz, keeping crude oil prices above $100 per barrel.
