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What is the story about?
Shares of jewellery companies, Titan Company Ltd., Senco Gold Ltd., Kalyan Jewellers Ltd., and others fell up to 10% Monday, May 11, after Prime Minister Narendra Modi's speech at an event in Hyderabad over the weekend.
While shares of Titan and Kalyan Jewellers are down between 6% and 8% on Monday, Senco Gold shares have extended their losses of 10%. Shares of Thangamayil Jewellery are also down another 5% on Monday.
During his address in Hyderabad at a public event, PM Modi appealed to citizens to not purchase gold for weddings for a period of one year. He made this appeal along with other measures such as re-introducing work from home culture, avoid unnecessary travel, including international travel to conserve on fuel and foreign exchange used for importing the same.
India's gold imports in April may fall to their lowest level in three decades as banks have been hit by an unexpected tax demand, Reuters reported on April 30, citing government sources.
Banks have halted shipments as Indian customs began to demand a 3% integrated GST on the same, Reuters reported, citing India Bullion and Jewellers Association secretary Surendra Mehta.
India is the world's second-largest gold consumer, and had imported an average 60 tonnes per month of Gold during financial year 2026, averaging a monthly cost of $6 billion.
The report further stated that jewelers had begun sourcing the imported gold from the India International Bullion Exchange (IIBX) although the volumes were small.
Although Titan's fourth quarter revenue was above expectations, its margins declined from last year, and gross margins too narrowed. The numbers were below street expectations, and yet, the stock had surged after the result reaction.
The company also said that it is conscious of the macro volatility and the fragile geopolitical situation.
Kalyan Jewellers' revenue grew by 66% from last year during the fourth quarter, with margins also expanding from the same quarter last year.
In an interaction with CNBC-TV18 on Monday, Senco Gold's Suvankar Sen said that based on the Prime Minister's commentary, there is a possibility of a gold import duty hike and if that happens, there could be a 10% to 12% reduction in gold volumes.
He also said that 50% of gold sales is led by the Old Gold exchange, adding that the government and industry must come together to bring 20,000 tonnes of Gold lying in the Indian economy.
The company had also planned to launched 20-25 stores in the new financial year.
Shares of Titan had ended 5% higher on Friday after its results. The stock hit a 52-week high as well. Shares of Kalyan Jewellers also ended with gains of 3.5% on Friday after announcing their results.
Also Read: West Asia conflict bigger threat to India’s CAD than growth, PM remarks focused on economy concerns: Sources
While shares of Titan and Kalyan Jewellers are down between 6% and 8% on Monday, Senco Gold shares have extended their losses of 10%. Shares of Thangamayil Jewellery are also down another 5% on Monday.
What Did PM Modi Say?
During his address in Hyderabad at a public event, PM Modi appealed to citizens to not purchase gold for weddings for a period of one year. He made this appeal along with other measures such as re-introducing work from home culture, avoid unnecessary travel, including international travel to conserve on fuel and foreign exchange used for importing the same.
India's Gold Imports
India's gold imports in April may fall to their lowest level in three decades as banks have been hit by an unexpected tax demand, Reuters reported on April 30, citing government sources.
Banks have halted shipments as Indian customs began to demand a 3% integrated GST on the same, Reuters reported, citing India Bullion and Jewellers Association secretary Surendra Mehta.
India is the world's second-largest gold consumer, and had imported an average 60 tonnes per month of Gold during financial year 2026, averaging a monthly cost of $6 billion.
The report further stated that jewelers had begun sourcing the imported gold from the India International Bullion Exchange (IIBX) although the volumes were small.
Titan's Q4 Results
Although Titan's fourth quarter revenue was above expectations, its margins declined from last year, and gross margins too narrowed. The numbers were below street expectations, and yet, the stock had surged after the result reaction.
The company also said that it is conscious of the macro volatility and the fragile geopolitical situation.
Kalyan Jewellers In Q4
Kalyan Jewellers' revenue grew by 66% from last year during the fourth quarter, with margins also expanding from the same quarter last year.
Senco Gold To CNBC-TV18
In an interaction with CNBC-TV18 on Monday, Senco Gold's Suvankar Sen said that based on the Prime Minister's commentary, there is a possibility of a gold import duty hike and if that happens, there could be a 10% to 12% reduction in gold volumes.
He also said that 50% of gold sales is led by the Old Gold exchange, adding that the government and industry must come together to bring 20,000 tonnes of Gold lying in the Indian economy.
The company had also planned to launched 20-25 stores in the new financial year.
Shares of Titan had ended 5% higher on Friday after its results. The stock hit a 52-week high as well. Shares of Kalyan Jewellers also ended with gains of 3.5% on Friday after announcing their results.
Also Read: West Asia conflict bigger threat to India’s CAD than growth, PM remarks focused on economy concerns: Sources
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