Modi's Gold Buying Appeal Triggers Sell-Off in Indian Jewellery Stocks
India's jewellery stocks suffered a decline on Tuesday, September 1, 2026, following Prime Minister Narendra Modi's appeal for citizens to reduce non-essential gold purchases. The Prime Minister urged people to adopt 'Swadeshi' and limit their gold consumption to strengthen national self-reliance and conserve foreign exchange.
The call for reduced gold buying comes as the country's trade deficit has been a concern. Despite a decline in physical gold imports to 721.03 tonnes in FY25-26, the total cost of these imports surged to $71.98 billion due to higher global prices. This has put pressure on the Indian rupee, particularly during periods of geopolitical tension and economic instability.
The government's stance is expected to have an impact on the jewellery industry, which relies heavily on festive and wedding-season demand. Shares of Titan Company retreated by 1.12% to ₹5,045.50, while Kalyan Jewellers witnessed a sharper decline of 4.50%, closing at ₹587.
Industry bodies have expressed concerns that reduced gold consumption could negatively impact the livelihoods of artisans and traders across the retail ecosystem. Policymakers have previously utilized fiscal levers such as adjustments to import duties to manage gold demand, and it is unclear what measures they will take next.