Why Titan, Kalyan Jewellers, Senco Gold Shares Fall Up to 10% on Monday

Jewellery stocks were hit by heavy selling on Monday, May 11, following remarks made by Prime Minister Narendra Modi, urging citizens not to buy gold for marriages for the next one year. Speaking at an event held in Hyderabad over the weekend, Modi made these comments, which resulted in significant falls in the prices of listed jewellers' shares.

Titan Company and Kalyan Jewellers were down between 6% and 10% on Monday, whereas Senco Gold saw its prices fall further by 10%. Thangamayil Jewellery was down by 6%, and PN Gadgil Jewellers was down by 8%.

PM Modi’s Remarks Trigger Sharp Reaction

While addressing the audience in Hyderabad, Prime Minister Narendra Modi requested Indians not to purchase gold for weddings for the next one year. The request was made in an attempt to lower India’s expenditure on imports and preserve its foreign exchange reserves.

Additionally, the Prime Minister requested individuals to minimize unnecessary travel, which includes foreign journeys, and recommended that businesses consider resuming work-from-home policies to lower fuel use and imports.

However, the remarks raised fears among investors regarding more government regulations to limit gold imports, such as raising import taxes.

Concerns Rise Over Gold Demand And Import Duty

India continues to be the second-biggest importer of gold worldwide. In the financial year 2026, India imported an average of 60 tonnes of gold each month, with the cost of importation reaching almost six billion dollars per month.

In a news report on April 30, gold imports in April may drop to their lowest in nearly three decades. This is after banks were subjected to unexpected taxes on gold imports.

Indian customs officers have allegedly been charging a 3% Integrated Goods and Services Tax on gold imports, which compelled banks to stop gold shipments for the time being.

The report also noted that jewellers have increasingly started sourcing imported gold through the India International Bullion Exchange, although transaction volumes remain limited.

Senco Gold Warns Of Volume Impact

From the statements made by the Prime Minister, there seems to be an expectation of a rise in the import duties of gold.

In case the import duties are raised, the sale of gold will fall by 10-12 percent.

About half the sales of gold in India happen due to the gold exchange process. The government and the jewellery industry need to collaborate to convert 20,000 tonnes of idle gold into money.

Though there is some uncertainty at present, Senco Gold is still going ahead with its plan of opening 20 to 25 new stores this fiscal year.

There is also a plan for the jewellery trade groups to meet representatives of the office of the Prime Minister on Tuesday.

Titan’s Q4 Margins Disappoint Street

Even as Titan saw revenues beat forecasts for the fourth quarter, it experienced deteriorating margins on an annual basis.

The company’s gross margins contracted, while profit margins fell short of consensus expectations. However, the share price had climbed following the earnings release.

The company pointed out the prevailing economic and geopolitical instability in its earnings commentary.

Kalyan Jewellers Reports Strong Revenue Growth

According to Kalyan Jewellers, there were good results in the fourth quarter, which saw revenues increase by 66% from the fourth quarter of the previous year.

There was also growth in the company's margins year over year, an indication of good performance amidst the fluctuating price levels of gold.

Nevertheless, fears about a potential decrease in demand and possible government interference dampened these good results, causing a stock correction on Monday.

Jewellery Stocks Extend Losses

By the end of Monday morning’s trading session, Kalyan Jewellers’ share price had fallen by 10%, Titan’s by 7%, and Senco Gold by 10% due to investor negativity towards the possibility of lower demand from consumers, increased import duties, and more stringent measures for buying gold in India.