Jewellery shares crash up to 10% after PM Modi’s appeal:Expert says gold demand may decline by 10%-12%

Shares of jewellery companies fell by up to 10% on May 11 following a statement by Prime Minister Narendra Modi. PM Modi appealed to citizens during an event in Hyderabad not to buy gold for one year. There is panic among investors after this statement. Shares of Kalyan Jewellers and Senco Gold crashed by 10-10%. Meanwhile, shares of Titan, the country’s largest jewellery company, fell by 7%. Besides this, PN Gadgil fell 8%, Thangamayil Jewellery 6%, and other small jewellery shares also witnessed weakness. Why did PM Modi make such an appeal? While addressing a public event in Hyderabad, PM Modi made this appeal to save foreign exchange reserves. He gave three suggestions at this event: 1. Do not buy gold for one year. 2. Adopt work from home culture. 3. Avoid unnecessary travel and international tours Government may increase gold import duty Suvankar Sen of Senco Gold told CNBC that after the Prime Minister’s comments, the possibility has increased that the government may raise import duty on gold. If this happens, gold demand could decline by 10% to 12%. He also mentioned that representatives of the Jewellery Association will meet with Prime Minister’s Office officials on Tuesday. Imports may reach 30-year low According to a Reuters report, India’s gold imports in April could reach their lowest level in three decades. Banks have halted shipments after suddenly being asked to pay 3% Integrated GST. India is the world’s second-largest gold consumer. In fiscal year 2026, India has imported an average of 60 tons of gold every month. This has cost approximately $6 billion, or around ₹57,000 crore, per month. Knowledge Part: Import Duty: The tax that the government levies on goods brought from other countries is called import duty. When this tax on gold increases, the prices of gold in the country rise.