Gold stocks plunge up to 12% after PM Modi's appeal to cut gold purchases
Synopsis
PM Modi's public appeal to skip gold purchases for a year — made at a BJP rally in Secunderabad — triggered a sector-wide selloff, with jewellery stocks losing up to 12% in a single session. Combined with a broader market decline driven by the West Asia crisis and oil above $100, Monday's rout signals that policy signals, not just macro data, can now move India's gold-linked equities sharply.
Key Takeaways
PM Modi on 10 May urged citizens to avoid non-essential gold purchases for the next one year to conserve foreign exchange reserves.
Sky Gold and Diamonds was the worst-hit, falling 12.24% to ₹475 ; Senco Gold dropped 11% and Kalyan Jewellers fell 10% .
Titan Company shed 8.02% to ₹4,151.40 ; BlueStone Jewellery declined 5.92% and Rajesh Exports fell 4.63% .
Sensex and Nifty also traded over 1% lower as the US-Iran talks failed, keeping crude above $100 per barrel .
Modi also called for work from home , fewer overseas vacations, and reduced fuel consumption as part of broader austerity measures.
Shares of jewellery companies witnessed sharp selling pressure on Monday, 11 May, after Prime Minister Narendra Modi urged citizens to defer non-essential gold purchases for the next one year, as part of broader austerity measures aimed at conserving India's foreign exchange reserves amid the ongoing West Asia crisis. Investors rushed to trim exposure to gold-linked counters, fearing the appeal could weigh heavily on jewellery demand in the months ahead.
Key Market Moves
Titan Company shares plunged as much as 8.02% to an intraday low of ₹4,151.40 in early trade. Kalyan Jewellers India dropped 10% to ₹382.20, while PN Gadgil Jewellers tumbled 8.32% to ₹668.05. Sky Gold and Diamonds emerged as one of the worst-hit stocks in the segment, declining 12.24% to ₹475.
Recently listed BlueStone Jewellery and Lifestyle fell 5.92% to ₹474.70, Senco Gold slumped 11% to ₹325.25, and Rajesh Exports shed 4.63% to ₹116.15. The broad-based selloff underscored how sensitive jewellery counters are to any signal that could dampen consumer demand for gold.
What PM Modi Said
Speaking at a Bharatiya Janata Party (BJP) public meeting in Secunderabad on Sunday, 10 May, Modi appealed to citizens to avoid non-essential gold purchases for the next one year to help reduce pressure on India's foreign exchange reserves.
Point of View
Import duty changes, or demand-side restrictions. India's gold imports have long been a structural drag on the current account, and Modi's framing — linking personal consumption choices to national forex resilience — is a significant rhetorical shift. If the West Asia crisis deepens and crude stays above $100, the government may be forced to move beyond appeals to harder measures, which would structurally reprice the entire listed jewellery sector.
NationPress
28 Jun 2026
Frequently Asked Questions
Why did gold-linked stocks fall on 11 May?
Jewellery stocks fell sharply after PM Modi publicly urged citizens to avoid non-essential gold purchases for one year to conserve India's foreign exchange reserves. The appeal, made at a BJP rally in Secunderabad on 10 May, triggered fears of a sustained dip in jewellery demand.
Which jewellery stocks were worst affected?
Sky Gold and Diamonds fell the most at 12.24%, followed by Senco Gold at 11% and Kalyan Jewellers at 10%. Titan Company dropped 8.02%, PN Gadgil Jewellers fell 8.32%, BlueStone Jewellery declined 5.92%, and Rajesh Exports shed 4.63%.
What did PM Modi say about gold purchases?
Speaking at a BJP public meeting in Secunderabad on 10 May, Modi asked citizens to defer non-essential gold purchases for the next one year to reduce pressure on India's foreign exchange reserves amid the ongoing West Asia crisis.
Why is the West Asia crisis affecting Indian markets?
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 $100 per barrel. Higher oil prices increase India's import bill and strain foreign exchange reserves, prompting the government's austerity push.
Did PM Modi announce any other austerity measures?
Yes. Modi called for the revival of work-from-home practices, online meetings, and virtual conferences to reduce fuel consumption. He also urged citizens to avoid overseas vacations and destination weddings, promoting domestic tourism and local spending instead.
