Why Are Jewellery Stocks Falling Today? Titan, Kalyan Jewellers Shares Tank Up To 10% After PM Modi’s Call To Pause Gold Purchases

Markets reacted sharply to PM Modi’s appeal to pause buying gold for a year with heavy selling pressure seen in Titan, Kalyan Jewellers and Senco Gold. In times of uncertainty, gold is considered the safest investment option in India; however, jewellery stocks emerged as one of the biggest casualties on Dalal Street on Monday. Shareholders divested gold counters after Prime Minister Narendra Modi appealed to Indians to stay away from purchasing gold for one year, a broader austerity measure to safeguard the country’s foreign exchange reserves against mounting global uncertainty.

The market reaction was quick and savage. Stocks of jewellery companies like Titan Company Limited, Kalyan Jewellers India Limited, and Senco Gold Limited saw heavy selling pressure with several counters falling 4-10% in intraday trade. Suddenly, investors were thinking about something the market had not really discounted until now – what if India moves towards tighter gold import measures or higher import duties as global pressures mount?

Jewellery Stocks Bleed With Investors Rushing To Exit

It was a broad-based selloff in listed jewellery companies.

Shares of Kalyan Jewellers India Limited fell ₹35.05 or 8.26 per cent to ₹389.50 by 11:51 am after touching an intraday low of ₹382.10. The stock opened way lower at ₹411 against its previous close of ₹424.55, indicating heavy selling pressure from word go.

Senco Gold Ltd too was a sharp loser, down ₹30.20 or 8.26 per cent to ₹335.20. The stock fell to an intra-day low of ₹325.05, as investors continued to cut their exposure to jewellery counters.

Tata Group-backed Titan Company Limited declined 6.42% or ₹289.60 to ₹4,219.40. However, during the session, the stock touched a low of ₹4,150.10 amid broad-based weakness in consumption-linked counters.

Smaller jewellery names also felt the heat to sell. SKY GOLD AND DIAMONDS LIMITED declined by 6.78% to Rs 504.55. PC Jeweller Limited is down 3.79% at Rs 9.14.

Meanwhile, Thangamayil Jewellery Limited traded lower by over 4% at ₹4,065 after hitting an intraday low of ₹3,832.10.

So, What Exactly Frightened Investors?

The trigger was Prime Minister Narendra Modi’s remarks over the weekend in Hyderabad, where he asked Indians to take to austerity measures in the face of the worsening geopolitical crisis in West Asia.

The Prime Minister has appealed to the people to cut down on fuel consumption, avoid unnecessary foreign travel and defer gold purchases for a year, including buying gold for weddings and festivals for one year.

The comments were part of a wider effort to protect India’s foreign exchange reserves as crude oil prices remain elevated and global supply disruptions continue to pressure the economy.

India imported a record $72 billion worth of gold during FY26, and the government appears increasingly concerned about the country’s heavy dependence on gold imports at a time when the rupee remains weak and oil prices are soaring.

Is The Market Worried About Higher Gold Import Duty?

That is where the real nervousness began.

Investors are now speculating whether the government could consider increasing gold import duties to curb demand and reduce pressure on India’s forex reserves.

At present, India’s gold import duty stands at 6%. However, any potential increase could significantly raise jewellery prices, weaken consumer demand and impact sales volumes for organised jewellery players.

Markets are essentially trying to assess whether PM Modi’s appeal was merely a call for temporary restraint or an early signal of possible policy action ahead.

Why Gold Matters So Much To India’s Economy

India consumes nearly 800 tonnes of gold annually but produces less than 2 tonnes domestically, making the country heavily dependent on imports.

When crude oil prices rise and the rupee weakens simultaneously, India’s import bill expands sharply. And on top of that, large-scale imports of gold exacerbate the pressure on foreign exchange reserves.

Geopolitical tensions in West Asia are shaking up global energy markets, and crude prices are still high, but policymakers seem to be focusing on stemming unnecessary outflows of imports.

The government’s bigger economic message is now about saving fuel, spending less at home and being less dependent on commodities from abroad.

Market Mood Remains Fragile

Monday’s selloff in jewellery stocks also came alongside broader market weakness, with the Sensex and Nifty trading sharply lower amid global uncertainty and rising crude oil prices.

Analysts believe volatility could remain elevated in jewellery counters in the near term as investors closely watch for any policy commentary around gold imports, duties or consumption curbs.

For now, one thing is clear: a single policy signal regarding gold demand was enough to wipe out billions in market value across India’s jewellery sector within hours.

Gold Prices Today In India: 24K, 22K And 18K Rates For 1 Gram

(Data Source: Good Returns | The above gold rates are indicative and do not include GST, TCS and other levies. For the exact rates contact your local jeweller.)

Gold Rates Across Major Indian Cities Today: Check 24K, 22K And 18K Prices Per Gram

(Data Source: Good Returns | The above gold rates are indicative and do not include GST, TCS and other levies. For the exact rates contact your local jeweller.)

Also Read: Gold Rates Today, 11 May 2026: Should Your Buy Gold Today? Check Yellow Metal Prices In Your City Now!

(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.)