Jewellery stocks crash up to 12% after PM Modi urges avoiding gold purchases
Titan and Kalyan Jewellers report strong Q4 earnings despite market selloff
Investor sentiment weakens as foreign exchange conservation concerns hit gold demand
Shares of major jewellery companies plunged sharply on Monday after Prime Minister Narendra Modi urged citizens to postpone gold purchases and conserve foreign exchange amid the ongoing Middle East crisis.
Stocks of Titan Company, Kalyan Jewellers, Senco Gold and Sky Gold and Diamonds were among the biggest losers in the sector.
1 May 2026
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Titan shares fell as much as 6.4%, while Kalyan Jewellers declined 8.3%. Sky Gold and Diamonds plunged over 12%, Senco Gold dropped nearly 11%, and shares of PN Gadgil Jewellers, PC Jeweller and Tribhovandas Bhimji Zaveri also witnessed sharp selling pressure.
The sharp decline came despite strong quarterly earnings reported by some of the sector's leading players.
PM's Appeal Hits Sentiment
Speaking at an event in Hyderabad on Sunday, Prime Minister Modi urged citizens to reduce non-essential imports and conserve foreign exchange as geopolitical tensions in West Asia continue to pressure India’s economy.
"We have to save foreign exchange by any means," Modi said, while appealing to people to avoid buying gold for weddings for the next one year.
The Prime Minister also called for reduced fuel consumption and postponement of foreign travel as part of broader efforts to strengthen the economy amid rising global uncertainties.
The comments triggered concerns among investors over potential demand slowdown in India’s jewellery sector, which remains heavily dependent on consumer purchases linked to weddings and festive demand.
Titan, Kalyan Post Strong Q4 Results
Titan Company reported strong March quarter earnings, with consolidated net profit rising 35.4% year-on-year to ₹1,179 crore.
Revenue from operations surged 77.6% to ₹23,934 crore during the quarter, while its jewellery business grew 50% year-on-year to around ₹18,195 crore, excluding bullion and digi-gold sales.
The Tata Group company also announced a dividend of ₹15 per share for FY26.
Brokerage Motilal Oswal Financial Services maintained a 'Buy' rating on Titan and raised its target price to ₹5,300, citing the company’s strong brand recall, market leadership and industry formalisation trends.
The brokerage expects Titan to report a sales CAGR of 15% and profit growth of 24% between FY26 and FY28.
Meanwhile, Kalyan Jewellers reported an even stronger profit performance.
The company's Q4 net profit jumped 118.2% year-on-year to ₹409.5 crore, while revenue from operations increased 66.2% to ₹10,274.9 crore.
Its board recommended a final dividend of ₹2.5 per share for FY26.
Motilal Oswal said Kalyan Jewellers continues to strengthen its position as a leading jewellery brand, supported by rapid franchise expansion and improving traction outside southern India.
The brokerage reiterated a 'Buy' rating on the stock with a target price of ₹575 per share.
Sector Faces Fresh Uncertainty
Despite strong earnings momentum, Monday's sharp selloff highlighted investor concerns over the impact of government messaging on discretionary consumption, especially in categories closely linked to imports and foreign exchange outflows.
The jewellery sector, which had benefited from formalisation and strong wedding demand in recent years, may now face near-term uncertainty if gold purchases moderate following the government's appeal.
