Kalyan Jewellers, Senco, Titan Slip As Much As 6% As Jewellery Stocks Extend Losses on Austerity Call

Mumbai, May 12: Jewellery stocks remained under pressure for a second straight session, with Titan, Kalyan Jewellers, and Senco Gold witnessing sustained selling amid concerns over demand following Prime Minister Narendra Modi’s appeal to defer gold purchases in order to conserve foreign exchange.

The sector’s weakness came after the Prime Minister urged citizens over the weekend to postpone gold purchases for a year, along with calls to reduce fuel consumption and limit non-essential foreign travel, as part of efforts to manage macroeconomic pressures linked to the ongoing global energy disruption. Investors interpreted the remarks as a potential signal of policy focus on curbing gold imports, which typically contribute significantly to India’s trade deficit.

Swift Reaction

The reaction in the market was swift. Shares of Titan, the country’s largest listed jewellery retailer, declined sharply on Monday, extending losses on Tuesday. At the time of writing, Titan was trading over 3% lower at Rs 4,048.80.

Other counters such as Kalyan Jewellers and Senco Gold also saw notable declines, while smaller peers experienced drops as well.Kalyan was down over six percent at Rs 361.00 as of writing. The stocks had already been volatile in recent weeks, making them vulnerable once sentiment turned cautious.

Titan took a tumble for a second straight day after call to austerity by PM. Source: NSE

Sensitive Stocks

Market participants said that gold-related stocks are particularly sensitive to demand outlook signals, especially during periods of elevated global uncertainty. India is one of the world’s largest gold consumers, and any suggestion of restraint on purchases can influence near-term expectations for jewellery sales volumes. While the organised jewellery sector continues to benefit from long-term structural growth, brand expansion, and rising penetration, short-term sentiment remains closely tied to macro cues.

Kalyan is on a slide as investors focus on headwinds from austerity overlooking robust results. Source: NSE

Adding to the pressure, broader equity markets were also under strain due to rising crude oil prices and concerns around inflation and currency stability. Higher oil prices typically widen the current account deficit and can weigh on the rupee, prompting defensive positioning across rate-sensitive and consumption-linked sectors.

Despite the sell-off, many jewellery companies have recently reported robust quarterly earnings, supported by strong revenue growth and improved operational performance. However, the market appears to be focusing more on potential demand moderation and policy implications rather than backward-looking results.

Analysts note that the current weakness may remain sentiment-driven unless there is clearer guidance on how long-term demand trends will evolve or if gold prices stabilise. For now, jewellery stocks continue to trade under pressure.

Source:

• https://www.nseindia.com/get-quote/equity/TITAN/Titan-Company-Limited
• https://www.nseindia.com/get-quote/equity/KALYANKJIL/Kalyan-Jewellers-India-Limited