Jewellery Stocks Crash After PM Narendra Modi Urges Indians To Avoid Gold Purchases

Shares of jewellery companies came under intense selling pressure on Monday after Prime Minister Narendra Modi appealed to citizens to avoid non-essential gold purchases for the next one year as part of austerity measures aimed at conserving India’s foreign exchange reserves amid the ongoing West Asia crisis.

The Prime Minister’s remarks triggered fears of weaker jewellery demand, leading investors to dump gold-linked stocks across the board.

Titan Company shares plunged as much as 8.02 per cent to an intraday low of INR 4,151.40 during early trade. Kalyan Jewellers India also witnessed heavy selling, falling 10 per cent to INR 382.20. Why Is Stock Market Down Today, May 11?

Other jewellery stocks suffered steep losses as well. PN Gadgil Jewellers declined 8.32 per cent to INR 668.05, while Sky Gold and Diamonds crashed 12.24 per cent to INR 475, emerging among the worst-hit counters in the segment.

Recently listed BlueStone Jewellery and Lifestyle slipped 5.92 per cent to INR 474.70. Senco Gold tumbled 11 per cent to INR 325.25, while Rajesh Exports fell 4.63 per cent to INR 116.15. Why PM Modi Urged Citizens Not To Buy Gold for a Year: Economic Impact Explained.

The sharp decline followed PM Modi’s speech at a BJP public gathering in Secunderabad on Sunday, where he stressed the importance of saving foreign exchange as rising crude oil prices and geopolitical tensions continue to pressure India’s economy.

“In the present circumstances, saving foreign exchange has become equally important for the nation,” the Prime Minister said.

Highlighting India’s dependence on imported fuel, PM Modi called for austerity measures including reduced fuel consumption, cutting avoidable expenditure and prioritising domestic spending.

He also urged citizens to revive Covid-era practices such as Work From Home, virtual meetings and online conferences to reduce unnecessary travel and fuel usage.

Additionally, the Prime Minister advised people to avoid overseas vacations and destination weddings while encouraging domestic tourism and local consumption.

The broader stock market also remained under pressure on Monday, with Sensex and Nifty falling over 1 per cent amid concerns over elevated crude oil prices after the US and Iran failed to reach an agreement over the Strait of Hormuz crisis.

Analysts believe the jewellery sector could remain volatile in the near term as investors assess the potential impact of reduced discretionary gold purchases on company earnings and consumer demand.

(The above story first appeared on LatestLY on May 11, 2026 01:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).