jewellery sectorgold purchasesPM ModiIndian economyforeign exchange reserves
Jewellery Shares Plummet Up to 9% After PM Modi's Call to Cut Gold Purchases
Published: May 11, 2026
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Prime Minister Narendra Modi's call to reduce gold purchases has led to a sharp decline in jewellery sector shares, with Senco Gold and Kalyan Jewellers shares falling over 8% on Monday. The appeal, made during a rally on Sunday, was part of a broader effort to conserve foreign exchange reserves and reduce pressure on the Indian economy.
The share prices of Titan, Senco Gold, and Kalyan Jewellers were among the hardest hit, with Titan losing 6.45% and Senco Gold tumbling 8.69%. The decline in share prices was attributed to the potential impact on demand for gold jewellery.
Experts such as Ajay Bagga and Sujan Hajra weighed in on the matter, citing concerns over foreign exchange conservation, geopolitical uncertainty, and rising oil prices. Bagga noted that the Indian economy is facing energy supply and price challenges, while Hajra warned that elevated oil prices and logistical disruptions are keeping inflation concerns in focus.
The broader market also declined, with the BSE Sensex and Nifty 50 shedding 1.20% and 1.07% respectively. The decline was attributed to a mix of geopolitical uncertainty, climbing oil prices, and renewed worries over foreign exchange conservation.
Looking ahead, the market is expected to remain volatile, with experts warning of potential risks and challenges. The government's efforts to conserve foreign exchange reserves and reduce pressure on the economy are likely to continue, with further developments expected in the coming days. The court will not be involved in this matter, however, the BSE and NSE will continue to monitor the market trends and announce the next trading sessions.