Jewellery stocks experienced significant declines on Tuesday, with most falling up to 7% in intraday trading as investors engaged in profit booking following strong recent gains. According to Business Standard, Kalyan Jewellers emerged as the biggest loser, declining as much as 6.7% to ₹572.75 per share, while Titan Company fell 1.95% to ₹5,015.75 on the BSE. Other jewellery stocks including Shanti Gold International, BlueStone Jewellery, Goldiam International, Thangamayil Jewellery and Motisons Jewellers declined between 0.6% to 3.7% during the session. However, some stocks bucked the trend with Lalitha Jewellery, Tribhovandas Bhimji Zaveri (TBZ) and Senco Gold gaining up to 20%, with TBZ's rally attributed to GRT Jewellers India's share purchase agreement to acquire a 74.12% stake in the company.
Prime Minister Narendra Modi on Tuesday celebrated India's 7.8% GDP growth in the April-June quarter, calling it an impressive feat despite global turmoil and supply chain disruptions. Speaking in a video message from Bishkek, the capital of Kyrgyzstan, Modi said the growth rate was particularly significant as it was achieved against the backdrop of geopolitical conflicts, wars, and economic uncertainty. The Prime Minister emphasized that "We must maintain this momentum. We must keep moving forward, and for that, becoming Atmanirbhar Bharat is essential." He noted that since the 2020 COVID pandemic, there has been no stability anywhere, yet India progressed well, stating "But people mired in despair are busy spreading 'jhooth ki goonj' and pessimism all around." Modi described his government's policies as good with clear intentions, saying "doomsayers were doomed and India bloomed yet again."
This marks the second such appeal by the Prime Minister in quick succession, as reported by The Economic Times. In May, speaking at an event in Hyderabad, PM Modi had appealed to citizens to avoid buying gold for weddings for the next one year. The current appeal, made through a social media video message from Bishkek on Tuesday morning, is part of a wider initiative aimed at conserving fuel and foreign exchange reserves, with the Prime Minister also advocating the return of work-from-home practices and urging people to reduce non-essential travel, including international trips. The appeal comes as gold has historically been viewed as one of the safest long-term stores of value for Indian families, particularly during periods of uncertainty, making the comments particularly impactful in the current market environment. In his latest appeal, Modi urged people to "prioritise domestic products and consumption" and said, "The mantra of Swadeshi, Vocal for Local: foreign trips, if you go for sightseeing, should not be done. If you do weddings abroad, it should not be done. One should live by the mantra of 'Wed in India'".
According to Business Standard, analysts attribute the decline in most jewellery stocks to profit booking by investors after strong gains seen in these stocks recently on the back of robust Q1 performance. Seema Srivastava, senior research analyst at SMC Global Securities, explained that "In the first quarter, Titan and Kalyan reported more than 20% growth. Same-store sales also normalised during the quarter. Because of this, the stocks hit all-time highs. Gold prices were also running high at that time. As a result, these stocks moved up significantly. Now, investors are booking profits." She further noted that "This is the second time the government has made a similar statement, and with the stocks already trading at elevated levels, investors find it a good time to book gains." Additionally, analysts expect some pressure on the margins of these companies during the second quarter as it coincides with the 'shradh' period, during which some Indians traditionally refrain from making auspicious purchases.
India remains the world's second-largest consumer of gold and imported an average of 60 tonnes of the precious metal every month during FY26, translating into a monthly import bill of nearly $6 billion, according to The Economic Times. This substantial import dependency underscores the potential impact of reduced domestic gold demand on India's foreign exchange reserves and overall trade balance. The Prime Minister's appeal appears rooted in larger macroeconomic concerns regarding protecting India's foreign exchange reserves at a time of elevated global uncertainty, rising crude oil prices and pressure on the rupee. India typically imports 700 to 800 tonnes annually to meet over 90% of its domestic demand, with gold imports surging 24% to a record high of $71.98 billion in FY26. Despite the higher import tariffs from 6% to 15% in May 2026, gold imports reached $15.17 billion between April and July, an increase of 32.4% from the corresponding period last year.
Despite the government's appeal, Kalyan Jewellers delivered exceptional Q1 FY27 results, demonstrating the resilience of organized retail players. The company reported consolidated net profit of ₹349 crore for Q1 FY27, representing a 32% YoY growth from ₹264 crore in Q1 FY26. Kalyan's consolidated revenue from operations stood at ₹10,589 crore, marking a 46% YoY increase from ₹7,268 crore in the corresponding quarter of the previous year. The company's India operations witnessed a same-store sales growth of approximately 28% during Q1 FY27, even with the unfavorable 28-day Adhik Maas period. Kalyan Jewellers expanded its retail footprint by opening 12 new showrooms in India during Q1 FY27, compared with 10 showrooms opened in Q1 FY26. Notably, the share of recycled gold as a percentage of revenue rose to over 46% during Q1 FY27, compared to lower historic ratios, under its active gold recirculation push, helping cushion against higher import duties.
