Kalyan Jewellers Shares Sink Over 9% After PM Modi’s ‘Don’t Buy Gold’ Appeal

PM Modi’s call to temporarily avoid gold purchases rattled jewellery stocks, triggering sharp selling at Kalyan Jewellers amid fears of weaker consumer demand. Shares of Kalyan Jewellers faced heavy selling pressure in early trade on Monday, tanking over 9% as investors reacted sharply to Prime Minister Narendra Modi’s appeal over the weekend to citizens to not buy gold for the next year.

The steep correction was also seen in a weak trend across the jewellery counters and in a fresh reaction to the latest March quarter earnings released by companies in the sector.

Kalyan Jewellers shares fell ₹39.25, or 9.25%, to ₹385.30 around 9:58 am, making the stock one of the biggest losers in the consumer and retail space.

The stock, which had closed at ₹424.55 in the previous session, opened sharply lower at ₹411 as selling intensified right from the opening bell. In the session, the counter hit an intraday low of ₹382.10, and the day’s high was capped at ₹411. The stock was also trading below its VWAP of ₹389.91, indicating sustained bearish momentum and aggressive profit booking.

Why Gold Demand Matters For India

India is the second largest consumer of gold in the world and relies heavily on imports to satisfy the domestic demand.

In FY26 India imported close to 60 tonnes of gold on a monthly average, which works out to an estimated import bill of about $6 billion per month.

A sharp rise in crude oil prices and heightened geopolitical tensions in West Asia have renewed concerns about India’s import bill, forex reserves and rupee stability.

Now, market players are worried that a continued slowdown in discretionary gold buying could affect jewellery demand trends, especially ahead of the upcoming wedding and festive seasons.

Also Read: ABB India Shares Crash Over 7% Despite Strong Order Growth; Why Are Brokerages Turning Cautious?

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)