Titan, Kalyan Jewellers, Senco Gold and Sky Gold Witness Sharp Sell-Off Amid Concerns Over Demand Slowdown

The remarks sparked concerns among investors about a potential slowdown in jewellery demand, leading to sharp declines across listed jewellery stocks despite the sector’s strong growth momentum over the past few quarters.

The sell-off was broad-based, with investors rushing to book profits in jewellery counters that had significantly outperformed the broader market in recent months.

Sky Gold, Senco and Kalyan Jewellers Lead Decline

Among the biggest losers was Sky Gold & Diamonds, which plunged nearly 12 per cent during intraday trade amid heavy selling pressure.

Shares of Thangamayil Jewellery and Senco Gold dropped around 9 per cent each, while Kalyan Jewellers declined nearly 8 per cent.

Meanwhile, jewellery heavyweight Titan Company slipped around 6 per cent, dragging consumer discretionary stocks lower.

Goldiam International also witnessed significant selling pressure as investors turned cautious on the sector’s near-term outlook.

Despite Monday’s sharp correction, most jewellery stocks have delivered strong gains over the last six months, significantly outperforming benchmark indices during the same period.

PM Modi Calls for Economic Discipline Amid Global Uncertainty

Prime Minister Narendra Modi made the appeal during a public address focused on reducing India’s dependence on imports and strengthening economic resilience amid rising global uncertainties.

The Prime Minister urged citizens to adopt measures aimed at reducing foreign exchange outflows, including limiting unnecessary foreign travel, choosing domestic wedding destinations and avoiding gold purchases temporarily.

The comments come at a time when global geopolitical tensions, elevated crude oil prices and supply-chain disruptions have increased pressure on India’s trade deficit and current account balance.

Market participants interpreted the statement as a policy-level signal encouraging restrained consumption of imported luxury and non-essential items.

Record Gold Imports Raise Economic Concerns

India’s gold imports surged sharply during FY26, reaching record levels despite elevated gold prices in global markets.

According to government data, the country’s gold imports rose nearly 24 per cent year-on-year, pushing the overall trade deficit significantly higher.

As India is one of the world’s largest consumers of gold, rising imports of the precious metal directly impact the country’s current account deficit (CAD) and foreign exchange reserves.

Economists have repeatedly highlighted that elevated gold imports create pressure on the rupee and increase external vulnerability during periods of global uncertainty.

Analysts believe the government’s focus on curbing non-essential imports is aimed at improving macroeconomic stability at a time when crude oil prices are also rising sharply.

Titan’s Strong Q4 Results Highlight Sector Resilience

Interestingly, the sharp correction in jewellery stocks came despite strong operational performance reported by several companies during the March quarter.

Titan Company recently reported robust growth in its jewellery business, with jewellery revenues rising nearly 50 per cent year-on-year during the quarter.

The company said strong wedding demand, festive purchases and higher gold prices contributed to healthy revenue growth despite elevated bullion prices.

Titan’s international jewellery business also delivered double-digit retail growth across GCC markets and North America, reflecting sustained consumer demand globally.

Management noted that consumers have increasingly been preponing purchases in anticipation of further increases in gold prices.

Analysts Remain Positive on Long-Term Industry Outlook

Despite near-term concerns, several brokerages remain optimistic about the long-term outlook for organised jewellery retailers.

Market experts believe the Indian jewellery industry continues to benefit from rising formalisation, increasing preference for branded jewellery and strong wedding-related demand.

Brokerages also highlighted that organised players are steadily gaining market share from unorganised jewellers due to stronger trust, hallmarking regulations and expanding retail networks.

Analysts expect companies with strong brands, efficient inventory management and robust balance sheets to continue outperforming over the long term.

Margin Pressures Could Increase if Gold Prices Rise Further

While higher gold prices often support revenue growth due to value-based sales, analysts warned that continued volatility in bullion prices may create pressure on operating margins.

Jewellery companies may face challenges related to inventory costs, hedging losses and fluctuations in consumer demand if gold prices remain elevated for an extended period.

Brokerages believe stable gold prices would help sustain profitability, while any sharp spike in bullion rates could temporarily impact discretionary jewellery purchases.

What Investors Should Watch Ahead

Going forward, investors are expected to closely monitor gold price trends, festive demand, wedding season sales and government policy commentary related to imports and consumption.

Market participants will also track the impact of geopolitical tensions, rupee movement and global commodity prices on India’s macroeconomic environment.

Although the sector may witness short-term volatility following the Prime Minister’s remarks, analysts believe organised jewellery retailers remain structurally well-positioned due to India’s strong cultural affinity toward gold and growing demand for branded jewellery products.