Titan, Senco Gold Shares Crash Up to 12% After PM Modi’s Appeal to Delay Gold Purchases
Jewellery stocks witnessed heavy selling pressure on Monday after Prime Minister Narendra Modi urged citizens to postpone gold purchases for one year to help conserve foreign exchange amid the ongoing West Asia crisis.
The sharp comments triggered panic selling across the jewellery sector despite strong quarterly earnings reported by several companies.
Titan, Senco Gold, Kalyan Jewellers and other gold-related stocks ended among the biggest losers in the market.
Titan Falls 7% While Senco Gold and Kalyan Jewellers Slide Sharply
Titan Company emerged as the top Nifty loser during the session.
The stock dropped nearly 7% after recently hitting its all-time high following strong March quarter earnings.
Other jewellery stocks also saw sharp declines:
- Sky Gold and Diamonds fell 12.24%
- Senco Gold dropped nearly 11%
- Kalyan Jewellers declined 9.99%
- Thangamayil Jewellery slipped 9.79%
- Tribhovandas Bhimji Zaveri fell 6.83%
- PC Jeweller declined 5.67%
The selling pressure dragged the Nifty Consumer Durables index down more than 3.5%, making it the worst-performing sectoral index of the day.
Read More : Sensex Crashes 1,313 Points as Crude Oil Shock Triggers Panic Selling on Dalal Street
Major Jewellery Stocks
| Stock Name | Price Range | Change % | Profit / Growth Data |
| Titan Company | ₹4,200–4,227 | -6.8% to -7% | Q4 PAT up 35% to ₹1,179 crore |
| Kalyan Jewellers | ₹382–390 | -9% to -10% | Q4 profit more than doubled (~118%) |
| Senco Gold | ₹325–336 | -10% to -11% | Strong revenue and retail expansion |
| Thangamayil Jewellery | ₹3,850–3,900 | -9% to -10% | Strong long-term CAGR and retail growth |
| Sky Gold and Diamonds | ₹470–490 | -12% | Strong revenue growth momentum |
| P N Gadgil Jewellers | ₹660–720 | -7% to -9% | Regional expansion and strong listing momentum |
| PC Jeweller | ₹8.8–9.5 | -5% to -6% intraday | Volatile speculative movement |
| Goldiam International | ₹420–435 | -3% to -4% | Stable export-driven growth |
Why Investors Fear Lower Jewellery Demand
- Investors fear people may reduce discretionary jewellery buying, especially for weddings and festivals.
- Wedding demand is a major revenue source for jewellery companies like Titan, Kalyan Jewellers, and Senco Gold.
- Rising crude oil prices have increased concerns about India’s trade deficit and economic stability.
- India imports most of its gold, so lower gold buying could help reduce pressure on the rupee and forex reserves.
- Investors worry that consumers may delay jewellery purchases due to economic uncertainty.
- Markets also fear the government could raise gold import duties in the future.
- Jewellery stocks had already rallied strongly after good Q4 results, so investors booked profits quickly after Modi’s comments.
- Smaller jewellery companies are more vulnerable because they depend heavily on wedding-season sales.
- Traders fear reduced gold demand could hurt small jewellers, artisans, and employment across the jewellery sector.
- Analysts say the impact may be stronger in the short term because sentiment weakened suddenly.
- However, many experts believe long-term gold demand in India may remain strong because gold is deeply linked to culture, savings, and weddings.
PM Modi’s Gold Buying Appeal Triggers Investor Panic
The market reacted negatively after PM Narendra Modi called on citizens to postpone discretionary spending such as gold purchases and foreign travel.
Addressing a public gathering in Hyderabad, the Prime Minister stressed the importance of saving foreign exchange as crude oil prices continue to rise due to the West Asia conflict.
“We have to save foreign exchange by any means,” Modi said.
He also warned that rising petrol and fertiliser prices were increasing pressure on the economy.
Here’s What Happened Today and Why Traders Reacted
Investors feared the Prime Minister’s appeal could impact jewellery demand, especially ahead of the wedding and festive season.
Although no policy changes were announced, traders reacted sharply due to concerns around consumer sentiment and discretionary spending.
Here are the key reasons behind today’s sell-off:
- PM Modi urged citizens to delay gold purchases
- Rising crude oil prices increased macroeconomic concerns
- Investors feared weaker jewellery demand ahead
- Consumer durable stocks witnessed broad-based selling
- Profit booking intensified after recent rallies in jewellery stocks
Analysts Say Gold Demand May Slow Temporarily
Market experts believe the Prime Minister’s statement may impact near-term sentiment but is unlikely to change India’s long-term gold demand pattern.
Khushi Mistry, Research Analyst at Bonanza, said the jewellery sector may face temporary demand pressure if consumers delay discretionary purchases.
However, she added that Indian gold demand remains culturally strong and may not see a lasting impact unless backed by policy changes such as duty hikes.
Analysts also pointed out that India remains one of the world’s largest gold importers, making gold imports a major factor in the country’s trade deficit during periods of high crude oil prices.
Strong Q4 Results Fail to Support Jewellery Stocks
Interestingly, the sharp fall came despite strong quarterly earnings from major jewellery companies.
Titan had recently reported its highest revenue growth in 15 quarters, driven by strong jewellery demand.
Kalyan Jewellers also posted more than double growth in consolidated net profit during the March quarter.
Most brokerage firms remain positive on the long-term growth outlook for organised jewellery players.
Analysts believe stable gold prices and rising formalisation of the jewellery market continue to support growth prospects for listed companies.
Experts Link PM Modi’s Appeal to Rising Crude Prices
According to market experts, the Prime Minister’s statement should be viewed in the context of India’s rising import bill and pressure on the rupee.
Jateen Trivedi of LKP Securities said high crude oil prices and geopolitical tensions linked to the US-Iran situation are increasing stress on India’s trade balance.
“The appeal is unlikely to significantly change long-term Indian demand for gold because gold remains deeply linked to savings and cultural buying patterns,” he said.
What Impact Did This Have on Investors?
Monday’s sharp decline wiped out significant investor wealth in jewellery and consumer durable stocks.
Short-term traders faced heavy losses as momentum selling intensified across the sector.
Long-term investors, however, continue to track whether the government introduces any formal measures related to gold imports or consumption.
Market experts believe volatility in jewellery stocks could remain high in the coming sessions as investors assess the impact of rising crude prices, currency weakness and changing consumer sentiment.
