Jewellery stocks slip as PM Modi renews call to avoid non-essential gold purchases
MUMBAI -- Shares of major Indian jewellery companies declined on Tuesday after Prime Minister Narendra Modi urged citizens to refrain from buying gold unless absolutely essential, a call that came in a social media post promoting self-reliance and domestic consumption.
The appeal, part of a message on Instagram, led to selling pressure across several listed jewellery companies during early trading, with analysts watching whether such government messaging could influence gold consumption patterns in the world's second-largest gold market.
Titan Company shares fell nearly two per cent to Rs 5,015 in early trade, while Kalyan Jewellers India dropped up to 5.8 per cent to Rs 578, according to exchange data. Thangamayil Jewellery declined 1.6 per cent to Rs 5,322, and BlueStone Jewellery and Lifestyle traded down 2.2 per cent at Rs 796.
Senco Gold was the only major jewellery stock trading higher, gaining up to 3.4 per cent in early trade.
PM's appeal for self-reliance
In his Instagram post, Modi encouraged Indians to embrace the principles of "Swadeshi" (self-rule) and "Vocal for Local," urging citizens to prioritise domestic choices and avoid unnecessary spending on gold. "We should also refrain from buying gold unless absolutely necessary," the Prime Minister said.
The message is part of a broader campaign called "Weddings in India," under which Modi also appealed to people to avoid travelling abroad for leisure and to host weddings within the country. He said greater adoption of Swadeshi and self-reliance would support India's journey towards becoming a developed nation by the time the country completes 100 years of independence.
The appeal is not the first of its kind from the Prime Minister. On May 10, amid the West Asia crisis, Modi had called upon citizens to become partners in strengthening the country and made seven appeals aimed at conserving foreign exchange. At the time, he urged citizens to reduce consumption of imported fuel, use public transport, and carpool, amid a rise in crude oil prices. He also called on people to avoid foreign travel for a year, reconsider destination weddings abroad, and limit excessive gold purchases.
Context and market reaction
Gold holds a significant place in Indian consumer behaviour, particularly for jewellery purchases linked to weddings, festivals, and family occasions. The precious metal remains one of the most preferred assets among Indian households due to its cultural importance and investment value.
The market reaction reflected investor concerns over whether such calls could influence gold consumption patterns and affect demand for jewellery companies. However, analysts note that wedding-related purchases and traditional demand continue to remain key drivers for the sector.