PM Modi’s Appeal Triggers Market Shock:Indian stock markets experienced severe selling losses on Monday, as jewellery aviation travel and oil-related stocks faced declines that reached 10% after Prime Minister Narendra Modi advised citizens to limit their gold buying. He urged to avoid unnecessary foreign travel and fuel usage during periods of elevated geopolitical tensions and increasing crude oil costs.
The sharp decline came after the Prime Minister’s remarks during a public address in Hyderabad, where he appealed to Indians to adopt “economic restraint” in light of mounting global uncertainties and pressure on India’s foreign exchange reserves.
Jewellery Stocks Lead Market Losses
Shares of leading jewellery companies came under intense selling pressure as investors feared that a prolonged slowdown in gold demand could impact revenue growth and margins across the sector.
According to market reports, shares of Titan Company fell as much as 8%, while Kalyan Jewellers and Senco Gold declined nearly 10% during intraday trade. Smaller jewellery firms such as Sky Gold also witnessed steep losses.
Senco Gold was down 8.69% or 31 points to 333 on the BSE, Titan lost 6.45% or 291 points to trade at 4,222 as of 11:11 am. Kalyan Jewellers trimmed 8.3% to 389, and PC Jeweller declined 3.26% to 9.
PM Modi’s Appeal Triggers Market Shock
Travel and aviation companies also saw heavy selling as the Prime Minister advised citizens to avoid non-essential foreign trips and revive work-from-home practices wherever possible.
Shares of InterGlobe Aviation, the parent company of IndiGo, slipped more than 5%, while travel booking platform Easy Trip Planners, which operates EaseMyTrip, also traded lower.
Market participants believe the comments could temporarily dampen demand for leisure travel and international tourism if consumers begin cutting discretionary spending.
Gold Price Today, May 11 After Modi’s Appeal: Latest 24-Carat And 22-Carat Rates Across Major Cities
Why PM Modi Made The Appeal?
The Prime Minister’s comments come at a time when global crude oil prices have surged amid escalating tensions in West Asia. Brent crude prices reportedly crossed the $100-per-barrel mark, which raised worries about how much India would spend on imports and how much it would face inflation and struggle with its current account deficit.
PM Modi delivered a speech in which he mentioned that the country needs to conserve its foreign exchange reserves through two methods which involve cutting down on unnecessary imports and reducing fuel usage. He also promoted the use of public transportation systems and electric vehicles while people should conduct their meetings through virtual platforms instead of traveling to physical locations for work.
Government officials demonstrate increasing efforts to observe how geopolitical conflicts and rising energy expenses will economically impact their nation according to analysts who study the situation.
Analysts See Sentiment Shock
The stock market experienced a steep decline but analysts believe that the market correction results from investor emotions instead of actual lasting problems within the market.
Ajay Bagga, Banking and Market expert, said, “India is a different story and the PM in a public gathering spoke of the energy supply and price challenges for the Indian economy and the need to take measures to reduce energy dependence and imports while conserving foreign exchange.
Indian markets are pointing to a weak open. Expectations of petrol and diesel price hikes this week are high as OMC losses are running at Rs 30,000 crores per month.”
India requires gold because people use it during weddings and festivals and cultural events which makes it impossible for jewelry consumption to stop completely. The market will experience short-term price fluctuations until crude oil prices drop or the government announces additional policy decisions.
