Jewellery Stock Crash: Modi's Statement Sparks Sharp Decline in Shares The jewellery sector faced a significant downturn following Prime Minister Narendra Modi's appeal to citizens to avoid non-essential gold purchases and international travel. The announcement, made during railway festivals in Hyderabad and Secunderabad, triggered a sharp sell-off in shares of major jewellery companies, with RBZ Jewellers in Ahmedabad and Radhika Jeweltech in Rajkot suffering the most. Modi's call to curb gold demand and reduce forex outflows created immediate uncertainty in the market. On May 11, 2026, shares of leading jewellery firms like Titan (part of the Tata Group) and Kalyan Jewellers plummeted by 6-10%, while Senco Gold saw a similar drop. RBZ Jewellers and Radhika Jeweltech experienced the steepest declines, with their shares falling by over 15% in a single day. Sky Gold also saw a sharp correction, reflecting widespread investor anxiety. The market reaction contrasted with data from the World Gold Council, which reported a 10% rise in gold demand in India for the first quarter of 2026. Total demand reached 151 tonnes, valued at Rs 2.27 lakh crore, driven largely by investment in gold ETFs and digital gold. Despite soaring prices, demand remained robust, particularly for investment purposes. Analysts noted the mixed signals: while Modi's statement targeted discretionary spending, the underlying demand for gold as an asset remained strong. Experts suggested the decline was temporary, citing the sector's resilience and the cultural significance of gold in Indian weddings and festivals. However, the shift toward digital gold and leasing models could reshape long-term investment patterns.#prime_minister_narendra_modi #world_gold_council #tata_group #rbz_jewellers #radhika_jeweltech
