How Jewelry Stocks Fared in Stock Market Following PM Modi's Appeal to Not Buy Gold? What Gem and Jewellery Council said?
On Sunday, Prime Minister Narendra Modi appealed to the public to refrain from purchasing gold in order to conserve foreign exchange reserves.
Subsequently, on Monday, shares of jewelry companies witnessed a sharp decline.
By the close of trading on Monday, Titan's shares had fallen by 6.75%. Kalyan Jewellers' shares dropped by approximately 9.25%, while PC Jeweller's shares declined by about 5%.
During Monday's trading session, TBZ shares fell by 7.15%, and Rajesh Exports' shares recorded a decline of approximately 4.75%.
Speaking at an event held in Secunderabad, Telangana, on Sunday, PM Modi appealed to the public to save foreign currency. He also outlined several measures to achieve this objective.
During his address, PM Modi urged people to refrain from buying gold for a period of one year and to reduce their consumption of edible oils.
Following this, the Congress party slammed PM Modi's statement, while Arvind Kejriwal questioned, "Is this some form of economic emergency?"
'Over 1 crore people employed in this industry would be impacted'
Meanwhile, speaking to the media in Nagpur, Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, stated, "From the perspective of national interest, PM's point is valid. Gold has become an integral part of our culture. Perhaps PM Modi is referring to those who purchase gold primarily for investment purposes."
Rokde said, "This could potentially impact the more than 1 crore people employed in this industry. We have submitted a proposal to the government regarding a Gold Monetization Scheme. Indians collectively hold approximately 40,000 to 50,000 tonnes of gold. If even 10 to 20 percent of this were to be monetized, there would be no need to import gold for the next 10 years."