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Jewelry stocks fell sharply on Monday after Prime Minister Narendra Modi urged people to avoid buying gold for the next few months. The prime minister emphasized this to help conserve foreign exchange reserves amid the Middle East crisis.
Speaking at an event in Hyderabad on Sunday, Modi asked citizens to cut non-essential spending and use fuel carefully. He also advised people to postpone foreign travel as part of broader efforts to reduce pressure on foreign exchange reserves.
“We have to save foreign exchange by any means,” Modi insisted.
The remarks triggered heavy selling in jewelry stocks despite strong March-quarter earnings from major companies.
Shares of Titan Company fell as much as 6.4%, while Kalyan Jewelers India dropped 8.3% during Monday’s trade. Sky Gold and Diamonds plunged 12.2%, making it the biggest loser among listed jewelry companies.
Shares of Senco Gold declined 10.7%, while PN Gadgil Jewelers slipped 7%. PC Jeweler and Tribhovandas Bhimji Zaveri also fell by more than 5%.
Also Read: Gold Prices Slip Slightly, Silver Remains Firm Amid Global Cues
Titan reported a 35.4% year-on-year rise in consolidated net profit to Rs. 1,179 crore in the March quarter. Revenue from operations jumped 77.6% to Rs. 23,934 crore during the same period.
Its jewelry business grew 50% year-on-year to around Rs. 18,195 crore despite elevated gold prices. The company’s board also recommended a dividend of Rs 15 per share for FY26.
Kalyan Jewelers posted a 118.2% jump in net profit to Rs. 409.5 crore in Q4FY26. Revenue from operations rose 66.2% year-on-year to Rs. 10,274.9 crore. The company recommended a final dividend of Rs 2.5 per share for FY26.
Brokerage firm Motilal Oswal Financial Services maintained its ‘Buy’ rating on both Titan and Kalyan Jewelers. The brokerage said that strong brand recall, expansion into non-southern markets, and a steady demand outlook continue to support long-term growth prospects.
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