Shares of major jewellery companies recorded sharp losses in the stock market after PM Narendra Modi urged citizens to avoid purchasing gold for one year. The appeal reportedly influenced investor sentiment, leading to a decline in the shares of leading jewellery firms.
During trading, Kalyan Jewellers shares fell by 9.27%, while Titan Company recorded a decline of 6.73%. Thangamayil Jewellery also witnessed a drop of 5.64% in the market.
Market analysts said the Prime Minister’s statement created concerns about possible changes in consumer demand for gold and jewellery products. Investors reacted quickly, resulting in heavy selling pressure in jewellery-related stocks during the trading session.
The appeal from the Prime Minister came amid discussions on reducing non-essential spending and managing economic pressures linked to global conditions. Gold purchases are considered a major part of the jewellery industry’s business activity across India.
Despite the market decline, analysts believe the jewellery sector will continue to remain an important part of India’s retail and investment economy in the long term.
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