PM Modi's call against gold jewellery triggers first hit to jewellery stocks

The article links Modi's appeal to macro concerns including India's rising import bill, forex reserve pressures, rupee weakness, elevated crude prices, and geopolitical tensions.

The piece emphasizes that while gold demand in India is emotionally and culturally resilient, markets trade on perception first; on Monday, perception won and jewellery stocks lost their shine.

Gaglani noted domestic MCX gold has strong support near Rs 1,48,000 with possible corrections toward Rs 1,50,000 presenting buying opportunities for long-term investors; he suggested a 10 percent portfolio allocation to gold as a hedge.

Deveya Gaglani, Senior Research Analyst - Commodities at Axis Direct, said gold itself is not in a breakout phase and prices are under pressure from inflation and high crude prices; Modi's statement is aimed at conserving forex reserves, not moving international prices.

Vikram Subburaj, CEO of Giottus.com, noted Modi's remarks reflect macro concerns with Brent crude above $105 per barrel and a weakened rupee, alongside a record gold import bill in FY26; he added that gold demand in 2025 remained robust at about 711 tonnes, and younger investors are diversifying to digital assets.

Bhavin Patel, Co-Founder & CEO of LenDenClub, said reactions across sectors indicate consumer sentiment and investment behaviour may gradually shift toward more cautious spending patterns.

Investors dumped jewellery stocks on fears that demand could slow, particularly during weddings and festive purchases, signaling a negative immediate reaction on Dalal Street.

Prime Minister Narendra Modi urged Indians to refrain from buying gold jewellery for a year, linking the appeal to India's rising import bill, pressure on foreign-exchange reserves, and a weakening rupee amid elevated crude prices and geopolitical tensions.