Gold jewellery stocks plunge on Modi's call to reduce purchases.

Gold jewellery stocks plunge on Modi's call to reduce purchases. Kalyan Jewellers, PN Gadgil, Senco Gold, and Tribhovandas Bhimji Zaveri dropped between 7.5 and 9.2 percent Monday as Prime Minister Narendra Modi urged citizens to avoid gold purchases for one year to protect foreign exchange reserves. The broader market fell only 1.5 to 1.7 percent, highlighting sector-specific weakness. Analysts believe the impact is primarily sentiment-driven rather than demand-altering. Long-term fundamentals remain supported by wedding seasons, festivals, and India's growing organized retail segment. Gold prices showed resilience, declining just 0.3 percent to 152,136 rupees per 10 grams. Experts suggest the policy stance targets discretionary spending but expect underlying consumption trends to persist.