Major Indian jewellery sector stocks experienced significant declines in Tuesday's afternoon trading session following an appeal from Prime Minister Narendra Modi. The Prime Minister urged the public to reduce non-essential gold purchases, avoid leisure travel abroad, and refrain from holding weddings overseas, advocating for greater self-reliance and support for domestic products.
Jewellery Shares See Sharp Drops
Several prominent companies in the gems and jewellery sector, along with gold financing firms, saw their share prices fall. Kalyan Jewellers recorded a substantial 7% drop, closing at Rs 571.95, down from its previous close of Rs 614.40. This pushed its market capitalization down to Rs 59,104 crore.
- Titan Company, a leading player, saw its shares slip 2% to Rs 5012.95, with its market cap settling at Rs 4.46 lakh crore.
- PC Jeweller shares crashed 6% to Rs 10.23, reducing its market capitalization to Rs 10,079 crore.
- Thangamayil Jewellery also fell 2.33% to Rs 5285, bringing its market cap to Rs 16,479 crore.
- Manappuram Finance, a gold-backed non-banking financial company (NBFC), registered a 2% decline, with shares trading at Rs 335.70 and a market cap of Rs 31,660 crore.
PM Modi's Call for 'Swadeshi'
Prime Minister Modi's appeal, made while attending the Shanghai Cooperation Organisation summit in Bishkek, emphasized the mantra of 'Swadeshi' and 'Vocal for Local'. He linked the call to national economic strength and self-sufficiency, coming after India reported a robust 7.8% GDP growth. The Prime Minister's remarks specifically highlighted the need to conserve foreign exchange by reducing luxury spending abroad and fostering domestic economic activity.
The sentiment around gold-related stocks was notably dampened by the Prime Minister's direct suggestion to avoid buying gold unless absolutely necessary, redirecting consumer spending towards indigenous goods and services.