Jewellery Stocks Face Volatility After Modi's Call to Reduce Gold Purchases
What should be the trading strategy for jewellery stocks after Modi’s remarks and sharp correction?
Mint
Image: Mint
Jewellery stocks, including Titan Company and Kalyan Jewellers India, dropped by up to 10% following Prime Minister Narendra Modi's suggestion to avoid non-essential gold purchases for a year. While analysts predict short-term pressure, they remain optimistic about long-term investments in quality jewellery firms amidst shifting consumer behavior.
- 01Jewellery stocks fell up to 10% after Modi's remarks on gold purchases.
- 02Analysts suggest short-term volatility but recommend long-term investment in quality stocks.
- 03Titan Company is viewed as a strong investment due to its brand and market position.
- 04Consumer behavior regarding gold purchases may change in the upcoming quarters.
- 05Investors are advised to adopt a cautious, staggered accumulation strategy.
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Jewellery stocks, including Titan Company, Kalyan Jewellers India, and Senco Gold, experienced significant selling pressure on May 11, with declines of up to 10%. This reaction followed Prime Minister Narendra Modi's call for citizens to refrain from non-essential gold purchases for a year as part of broader austerity measures aimed at protecting India's foreign exchange reserves. Despite a 24% increase in gold imports to a record USD 71.98 billion in FY26, the volume of gold imported decreased by 4.76%. Analysts like Ajit Mishra from Religare Broking caution that while short-term volatility may persist, long-term investors should consider staying invested in fundamentally strong companies. Harshal Dasani from INVasset PMS recommends a 'buy quality on correction' strategy, emphasizing that the current market reaction is more sentiment-driven than indicative of a structural slowdown. He highlights Titan's strong brand and market position as key factors for potential growth, while advising caution with smaller jewellery stocks until market sentiment stabilizes.
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The decline in jewellery stocks could affect investor sentiment and spending behavior, particularly in the wedding and festival seasons, which are crucial for jewellery sales.
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More about Titan Company

Jewellery Stocks Plummet Following Modi's Call to Reduce Gold Purchases
Mint • May 11, 2026
Gold Stocks to Watch: Titan and Kalyan Jewellers Surge Amid PM's Appeal
The Economic Times • May 11, 2026
JP Morgan Upgrades Titan Company to 'Overweight' Amid Strong Jewellery Demand
Business Standard • May 11, 2026
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