Mumbai: Shares of jewellery companies witnessed sharp selling pressure on Monday after Prime Minister Narendra Modi urged citizens to defer non-essential gold purchases as part of broader austerity measures aimed at conserving foreign exchange reserves amid the ongoing West Asia crisis.
Investors rushed to trim exposure to gold-linked counters amid fears that the Prime Minister’s appeal could weigh on jewellery demand in the coming months.
Shares of Titan Company plunged as much as 8.02 per cent to hit an intraday low of Rs 4,151.40 in early trade.
Meanwhile, Kalyan Jewellers India shares dropped 10 per cent to Rs 382.20, while PN Gadgil Jewellers stock tumbled 8.32 per cent to Rs 668.05.
Shares of Sky Gold and Diamonds were trading 12.24 per cent lower at Rs 475, emerging among the worst-hit stocks in the segment.
Recently listed BlueStone Jewellery and Lifestyle declined 5.92 per cent to Rs 474.70.
In addition, Senco Gold slumped 11 per cent to Rs 325.25, while Rajesh Exports fell 4.63 per cent to Rs 116.15.
The sharp decline in jewellery counters came after PM Modi, while addressing a BJP public meeting in Secunderabad on Sunday, appealed to citizens to avoid non-essential gold purchases for the next one year to help reduce pressure on India’s foreign exchange reserves.
“In the present circumstances, saving foreign exchange has become equally important for the nation,” he said.
Highlighting India’s dependence on imported fuel, PM Modi stressed the need for austerity measures, including conserving fuel, reducing avoidable expenditure and prioritising domestic consumption.
He also called for the revival of Covid-era work practices such as work from home, online meetings and virtual conferences to reduce unnecessary travel and fuel consumption.
PM Modi further urged citizens to avoid overseas vacations and destination weddings while promoting domestic tourism and local spending.
Meanwhile, equity benchmarks Sensex and Nifty traded over 1 per cent lower in morning trade on Monday after the US and Iran failed to reach an agreement that could have eased concerns over disruptions in the Strait of Hormuz, keeping crude oil prices elevated above the $100-per-barrel mark.
(IANS)
