Jewellery stocks witnessed sharp selling pressure on Monday after as part of measures aimed at conserving foreign exchange amid the ongoing crisis, triggering concerns over near-term demand for the sector.
Titan Company shares tumbled as much as 8 per cent to ₹4,150.10 in early trade before recovering slightly to trade at ₹4,167.90 around 10.26 am. The last week.
Kalyan Jewellers India shares tanked nearly 10 per cent to ₹382.10 from the previous close of ₹424.55. The company had also announced its March quarter results last week.
Senco Gold shares plunged around 11 per cent to ₹325.05 on the NSE from the previous close of ₹365.40. Thangamayil Jewellery fell nearly 10 per cent to ₹3,832.10 against the previous close of ₹4,246.70.
Sky Gold and Diamonds shares tumbled more than 12 per cent to ₹475 during the session. Shares of P N Gadgil Jewellers and Bluestone Jewellery also declined up to 9 per cent amid broad-based weakness across the jewellery segment.
The sharp correction in jewellery stocks reflects investor concerns that any prolonged slowdown in discretionary gold purchases could impact demand momentum, particularly at a time when gold prices remain elevated and consumer buying patterns are already showing signs of moderation.
Khushi Mistry, Research Analyst at Bonanza, said the jewellery sector could face near-term demand pressure after the Prime Minister’s appeal to defer gold purchases for a year, especially ahead of the festive and wedding season. However, Mistry noted that gold demand in India remains deeply rooted culturally and is unlikely to see a sustained impact unless accompanied by policy measures such as higher import duties.