Shares of gold jewellery companies saw sharp selling pressure on Monday, in sync with broader market, with sectoral heavyweights Titan Company, Kalyan Jewellers India, Senco Gold, Sky Gold and Diamonds falling up to 10% in early trade.

The sentiment was dented after Prime Minister Narendra Modi urged citizens to postpone gold purchases and curb discretionary imports as part of broader measures to conserve foreign exchange amid the ongoing West Asia crisis and elevated crude oil prices.

Triggered by PM Modi’s comment, all gold jewellery opened in negative terrain on Monday. The sectoral leader Titan Company plunged as much as 8% to ₹4,151 on the BSE, making it one of the top laggards on the Sensex.

In a similar trend, Kalyan Jewellers shares declined over 9%, while Senco Gold and Sky Gold slumped nearly 10% each during the trade so far.

Among others, shares of PN Gadgil Jewellers also tumbled close to 9%, while Bluestone Jewellery and Lifestyle, Goldiam International, PC Jeweller and Thangamayil Jewellery fell between 4% and 6%.

Other stocks in the sector, including Khazanchi Jewellers, Shringar House of Mangalsutra, Shanti Gold International and Vaibhav Global, also traded lower amid broad-based selling pressure across the consumer discretionary segment.

Gold curbs aimed at protecting rupee, managing imports, says analyst

According to Jateen Trivedi, the Prime Minister’s remarks should be viewed primarily from the perspective of India’s macroeconomic stability and import management. He noted that India remains one of the world’s largest gold importers, and during periods of elevated crude oil prices and global uncertainty, high gold imports place additional pressure on the trade deficit and the rupee.

“The timing of the statement is important because India is currently facing a combination of higher crude prices, geopolitical tensions linked to the US–Iran situation, and pressure on the currency due to rising import bills. Gold imports require large outflows of foreign currency, mainly dollars, and at a time when policymakers are trying to stabilise the rupee and control external sector risks, discouraging non-essential imports becomes an important strategy,” Trivedi said.

He added that while the government’s appeal is unlikely to alter India’s long-term affinity toward gold — given its deep connection with savings, investment, and cultural buying patterns — it may temporarily slow discretionary purchases and create cautious sentiment across bullion and jewellery-related businesses.

From a commodities perspective, Trivedi said gold prices remain highly sensitive to global macroeconomic developments. According to him, the precious metal could witness a strong rally if geopolitical tensions escalate further, crude oil prices remain elevated, central banks move toward rate cuts, or the U.S. dollar weakens sharply. Conversely, gold may see meaningful corrections if the U.S. Federal Reserve maintains a higher-for-longer interest rate stance, geopolitical tensions ease sustainably, crude prices cool, and ETF or institutional inflows weaken.

“Overall, the government’s message appears more focused on encouraging temporary restraint in imports and preserving macro stability rather than indicating any structural negative stance toward gold ownership itself,” he said.

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