Synopsis: Jewellery stocks including Kalyan Jewellers India, Senco Gold, and Titan Company, fell up to 12% after fears of a possible gold import duty hike emerged following PM Modi’s appeal to avoid buying gold for a year.
Jewellery stocks witnessed sharp selling pressure in Monday’s trading session, with several companies from the sector falling up to 12% intraday amid weak investor sentiment and rising concerns over a potential increase in gold import duties.
The decline came after Prime Minister Narendra Modi urged citizens to avoid gold purchases for a year to help conserve foreign exchange reserves as global uncertainties and rising import costs continue to pressure the Indian economy.
Stocks movement
With a market capitalisation of Rs. 40,194 cr, the shares of Kalyan Jewellers India Ltd were trading at Rs. 386.75 per share, decreasing 10% in today’s market session, making a low of Rs. 382.20, down from its previous close of Rs. 424.65 per share.
With a market capitalisation of Rs. 5,461 cr, the shares of Senco Gold Ltd were trading at Rs. 332.20 per share, falling 11% in today’s market session, making a low of Rs. 325.25, down from its previous close of Rs. 365.45 per share.
With a market capitalisation of Rs. 12,548 cr, the shares of Thangamayil Jewellery Ltd were trading at Rs. 4029.30 per share, slumping 10% in today’s market session, making a low of Rs. 3,831.80, down from its previous close of Rs. 4,247.70 per share.
With a market capitalisation of Rs. 7,601 cr, the shares of Sky Gold And Diamonds Ltd were trading at Rs. 490.85 per share, slumping 12% in today’s market session, making a low of Rs. 475, down from its previous close of Rs. 541.25 per share.
With a market capitalisation of Rs. 3,75,360 cr, the shares of Titan Company Ltd were trading at Rs. 4224 per share, dropping 8% in today’s market session, making a low of Rs. 4,151.40, down from its previous close of Rs. 4,513.40 per share.
What’s the News
On May 11, 2026, shares of major Indian jewellery firms, including Titan, Senco Gold, and Kalyan Jewellers, plummeted by as much as 12%. This sharp decline followed growing fears of a potential hike in gold import duties, triggered by Prime Minister Narendra Modi’s recent appeal to citizens to avoid buying gold for a year.
The Prime Minister’s request is a strategic move aimed at preserving India’s foreign exchange reserves and reducing the country’s massive gold import bill, which reached a record $72 billion in the 2025-26 financial year.
The market speculation regarding a duty hike stems from the government’s need to curb consumption as external economic pressures mount. With the Indian rupee weakening and global crude oil prices remaining high due to ongoing conflicts in West Asia, India’s forex reserves have seen a notable decline from their peak in February 2026. While the import duty currently stands at 6%, investors are concerned that any increase would lead to higher jewelry costs and a significant drop in import volumes.
Beyond curbing gold purchases, the Prime Minister suggested several other measures to stabilise the national economy, such as promoting domestic tourism and encouraging work-from-home arrangements. Given that India produces less than 2 tonnes of gold annually but consumes up to 800 tonnes, the government is prioritising a reduction in this heavy import reliance to protect long-term financial stability.
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