Shares of gold jewellery companies in Mumbai experienced a significant decline of up to 9% on Monday after Prime Minister Narendra Modi urged citizens to avoid buying gold for the next year to help protect foreign exchange reserves. Major companies such as Kalyan Jewellers and Tribhovandas Bhimji Zaveri saw their stock prices drop between 7.5% and 9.2%, contrasting with the 1.5-1.7% decline in the Nifty and Sensex indices. Analysts, including Harsh Thakkar from Samco Securities, noted that while the government's stance may dampen near-term investor sentiment, it is unlikely to affect overall demand, which has been healthy across the sector. Gold prices remained relatively stable, closing at ₹1,52,136 per 10 grams, down 0.3%. Despite the current challenges, experts like Sunny Agrawal from SBI Securities believe that the underlying consumption trends will remain intact, especially with the upcoming wedding season. The sector outlook for FY27 remains strong, with analysts suggesting that any dips in stock prices could present good buying opportunities.