India Jewelry Stocks Lose 12% as Modi Targets $72 Billion Gold Import Bill

India’s jewelry stocks suffered a sharp single-day selloff on Monday. Major retailers shed up to 12% after Prime Minister Narendra Modi urged a one-year pause on gold buying.

The Nifty Consumer Durables index closed 4% lower, and Titan was the single biggest drag on the Nifty 50.

Inside the India Jewelry Stocks Selloff

Senco Gold and Thangamayil Jewellery each fell about 9%. Kalyan Jewellers slipped 8%. Titan Company and Goldiam International dropped about 6%, while Sky Gold lost as much as 12% intraday.

The selling started at the open and accelerated into the afternoon session.

India's Jewellery Stocks Down. — India’s Jewellery Stocks Down.

“One statement by PM and all down,” equity researcher Dhawal Doshi highlighted.

Investors priced in weaker volumes for the upcoming wedding season, which drives roughly half of India’s annual gold purchases.

Lower retail footfalls would directly hit revenues across the gold retail segment. The move could compress same-store sales growth over the next two quarters.

Why Modi Targeted India’s Gold Demand

India is the world’s second-largest gold consumer behind China and a major import market for the metal.

1) India is a net importer of Gold (2nd largest after China). We import gold to meet our domestic demand.

2) When you convert INR to gold and (let’s say you keep it in a locker) that money technically goes out of the system.

The velocity of money reduces. Effectively, this… https://t.co/2aOwwQQ4UB

— Akshat Shrivastava (@Akshat_World) May 10, 2026

Gold imports rose 24% to $71.98 billion in fiscal 2025-26. That compares with $58 billion in the prior year, per government data.

The Prime Minister’s weekend appeal followed a sharp run-up in Brent crude tied to West Asia tensions. India imports roughly 85% of its oil, and heavy gold buying compounds dollar outflows during such shocks.

The two import categories drive most of India’s external trade pressure.

Forex reserves dropped $7.79 billion in the week ended May 1 to $690.69 billion. The rupee weakened past 95 against the dollar during the session.

USD/INR Price Performance. Source: TradingView

India VIX spiked 11.89% to 18.84, while the Sensex closed 1,004 points lower at 76,321.62.

The Reserve Bank of India is widely expected to defend the rupee. India jewelry stocks now face a critical test as the gold curb extends into the wedding season.

The gold retail sector looks like Dalal Street’s most exposed pocket today.

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