Shares of publicly traded Indian jewellery makers tumbled on Monday after Prime Minister Narendra Modi appealed to citizens to avoid purchasing gold for the next year in an effort to help safeguard the nation’s foreign exchange reserves.
Among the firms cited in market moves were Titan (NSE:TITN), Senco Gold (NSE:SENC) and Kalyan Jewellers (NSE:KALN), each of which recorded declines in the range of roughly 6% to 8%.
The prime minister delivered the appeal on Sunday as part of a set of measures framed around economic conservation. Along with the request to pause gold purchases, the measures included calls for fuel savings, wider adoption of remote work arrangements and tighter restrictions on travel and imports.
Officials framed these steps as responses to mounting external pressures. The appeal to curb gold buying was explicitly tied to a goal of protecting foreign exchange reserves. At the same time, an escalation related to the Iran war has lifted oil prices, contributing to strains on India’s balance of payments and placing pressure on the rupee, according to the statements surrounding the measures.
Market participants reacted quickly to the prime minister’s comments, with jewellery-sector equities among the more directly affected segments. The cited declines for Titan, Senco Gold and Kalyan Jewellers reflect investor concern about an abrupt drop in domestic demand for physical gold if consumers follow the government’s guidance.
How the guidance will affect consumer behaviour and jewellery industry revenues over the coming months is not detailed beyond the initial request. The government’s suite of conservation measures bundles behavioural appeals - such as reduced gold purchases and fuel savings - with policy actions like limiting travel and imports and encouraging remote work, signalling a coordinated attempt to ease external financial pressures.
For the listed companies named, the immediate market reaction translated into mid-single-digit to high-single-digit percentage declines. The commentary from authorities tied the measures to broader macroeconomic concerns, specifically attempting to bolster foreign exchange buffers amid a more expensive oil backdrop.
Contextual note: The information presented here is limited to the official appeal and the market movements reported for the named jewellery firms; no additional outcomes or longer-term effects were stated in the original remarks.