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Indian Jewelry Stocks Slide After Modi Urges Citizens to Delay Gold Purchases
Indian jewelry retail stocks fell sharply on Monday after Prime Minister Narendra Modi urged citizens to avoid buying gold for the next year in an effort to help protect the country’s foreign exchange reserves.
Major jewelry companies, including Titan, Senco Gold, and Kalyan Jewellers, saw their shares decline between 6% and 8% following the announcement, reflecting investor concerns over potential weakening demand in India’s gold market.
Modi delivered the statement on Sunday as part of a broader set of economic conservation measures aimed at reducing pressure on the nation’s economy. The initiatives included fuel-saving efforts, expanding remote work arrangements, and limiting travel and imports to preserve financial stability.
The appeal comes amid rising geopolitical tensions linked to the Iran conflict, which has pushed global oil prices higher and increased pressure on India’s balance of payments and the Indian rupee.
India remains one of the world’s largest gold consumers, making any policy signals or public appeals related to gold demand highly influential for the country’s jewelry sector and financial markets.