Mumbai: Shares of major jewellery companies came under heavy selling pressure on Monday after Prime Minister Narendra Modi appealed to citizens to avoid non-essential gold purchases for the next one year amid concerns over rising pressure on India’s foreign exchange reserves during the ongoing West Asia crisis.
The Prime Minister’s remarks triggered sharp declines in gold-linked stocks, as investors feared weaker jewellery demand in the coming months.
Shares of Titan Company plunged more than 8 per cent during early trade, touching an intraday low of Rs 4,151.40.
Kalyan Jewellers India shares dropped nearly 10 per cent to Rs 382.20, while PN Gadgil Jewellers fell over 8 per cent to Rs 668.05.
Among the biggest losers, Sky Gold and Diamonds declined more than 12 per cent to Rs 475.
Recently listed BlueStone Jewellery and Lifestyle also slipped nearly 6 per cent to Rs 474.70.
Meanwhile, Senco Gold shares tumbled around 11 per cent, while Rajesh Exports dropped over 4 per cent in morning trade.
The sell-off followed PM Modi’s address at a BJP public meeting in Secunderabad on Sunday, where he stressed the importance of conserving foreign exchange reserves in the current global situation.
“In the present circumstances, saving foreign exchange has become equally important for the nation,” the Prime Minister said.
He highlighted India’s heavy dependence on imported fuel and called for austerity measures such as reducing unnecessary expenditure, limiting fuel consumption and supporting domestic spending.
PM Modi also urged people to avoid overseas vacations and destination weddings abroad while encouraging domestic tourism and local consumption.
The weakness in jewellery stocks came amid broader market pressure, with the BSE Sensex and Nifty 50 trading more than 1 per cent lower after rising tensions between the United States and Iran kept crude oil prices above the 100-dollar-per-barrel mark.
With inputs from IANS