Shares of jewellery companies fell sharply on Monday after Prime Minister Narendra Modi urged citizens to reduce gold purchases amid rising crude oil prices, global uncertainty and pressure on foreign exchange reserves.
During his recent public address, Modi appealed to people to avoid unnecessary imports, reduce fuel consumption and limit foreign travel. He also advised citizens to cut down on gold purchases for at least a year to help conserve foreign exchange reserves.
The remarks triggered heavy selling in jewellery sector stocks on Dalal Street. Shares of Titan Company declined nearly 7 percent, while Kalyan Jewellers fell more than 9 percent during Monday’s trading session.
Other jewellery firms, including Senco Gold and Sky Gold, also witnessed losses ranging between 10 and 12 percent.
Investors fear slowdown in gold demand
Market analysts said investors fear that demand for gold jewellery could weaken during the upcoming wedding and festival season if consumers respond to the Prime Minister’s appeal.
However, traders in Hyderabad’s bullion market said there has been no major decline in customer demand so far. They noted that gold purchases for weddings and traditional occasions continue despite market volatility.
Meanwhile, domestic gold prices also declined on Monday amid growing geopolitical tensions between the United States and Iran in West Asia.
According to the All India Sarafa Association, the price of pure gold in Delhi dropped by more than Rs 600 to Rs 1,51,920 per 10 grams.
In Hyderabad, the price of 24 carat gold fell by Rs 220 to Rs 1,53,550 per 10 grams. The price of 22 carat gold, commonly used for jewellery, declined by Rs 200 to Rs 1,40,650 per 10 grams.
Silver prices remained stable at around Rs 2.85 lakh per kilogram in the Hyderabad market.
Global uncertainty impacts bullion market
Experts said rising crude oil prices and uncertainty in global financial markets are influencing bullion prices and investor sentiment. They added that any further escalation in geopolitical tensions could increase volatility in gold and silver markets in the coming weeks.
Investors are also closely monitoring government policy signals and global economic developments before making fresh investments in precious metals.
Now you can get the latest stories from Indtoday on Telegram every day. Click the link to subscribe. Click to follow Indtoday’s Facebook page, Twitter, and Instagram. For all the latest Hyderabad News updates and Follow us on GoogleNews
