Jewellery stocks in focus: Prime Minister Narendra Modi has urged people to limit non-essential gold purchases for a year, mainly to help India conserve foreign exchange reserves amid the ongoing West Asia crisis.

Titan Company share price: Shares of gold jewellery companies such as Titan Company, Senco Gold, Kalyan Jewellers, Goldiam International, and Thangamayil Jewellery, among others, were trading with notable losses on Monday, May 11.

The stocks came under selling pressure as Prime Minister Narendra Modi has urged the citizens to avoid non-essential gold purchases for one year in order to reduce pressure on foreign exchange outflows and encouraged them to prioritise Made-in-India and locally manufactured products, including daily-use items such as shoes, bags, and accessories.

Why did PM Modi make this appeal?
Prime Minister Narendra Modi has urged people to limit non-essential gold purchases for a year, mainly to help India conserve foreign exchange reserves amid the ongoing West Asia crisis.

India imports most of its gold and crude oil, both of which are bought using US dollars.

With geopolitical tensions pushing up oil and gold prices globally, India’s import bill could rise sharply, putting pressure on the rupee and the economy.

Since gold jewellery demand in India is very high, especially during weddings and festivals, reducing purchases temporarily can help lower dollar outflows and ease pressure on the country’s trade deficit and forex reserves.

Near-term impact
In India, gold buying is deeply linked to culture and weddings. According to reports, analysts believe demand may be postponed rather than disappear completely. However, the appeal could affect short-term sentiment among jewellery retailers if consumers become more cautious.

What has Titan said about short-term gold supply issues?
Leading branded jeweller Titan Company is unconcerned about short-term gold supply issues stemming from the West Asian conflict, as its gold exchange programme and contingency sourcing plans are helping to mitigate risks.

Titan, whose FY26 topline crossed ₹75,000 crore, said the company's gold exchange programme has been running successfully since the third quarter, and it has further strengthened sourcing flexibility for its jewellery businesses.

"Our gold exchange programme has been very, very successfully run from the last quarter three onwards. We always used to run this, but now we have another level," CFO Ashok Sonthalia said while responding to a query around gold supply.

How individual stocks are performing
At the time of writing this article, Titan shares were trading 7.95% lower at ₹4,150.10 apiece on the NSE, while Senco Gold was down 10.55% at ₹326.85. P N Gadgil Jewellers was trading 6.48% lower at ₹680.70. Thangamayil Jewellery was down 5.64% at ₹4,007.00. Kalyan Jewellers India was trading over 9% lower at ₹385.10.

Courtesy: Upstox