Titan, Kalyan shares fall after PM Modi renews call to avoid non-essential gold buying
Titan fell 1.12% to ₹5,045.50 and Kalyan Jewellers dropped 4.50% to ₹587 after PM Modi reiterated an appeal to curb unnecessary gold purchases. India’s gold-import value rose 24% to a record $71.98 billion in FY26, despite a 4.76% decline in import volumes.
What happened
Titan Company · PM Modi again urged Indians to avoid unnecessary gold purchases, citing self-reliance and forex pressures. Jewellery shares fell, with Titan
Key facts
- Titan Company fell 1.12% to ₹5,045.50
- Kalyan Jewellers declined 4.50% to ₹587
- Gold imports rose 24% to an all-time high of USD 71.98 billion in 2025-26
- Gold-import volume fell 4.76% to 721.03 tonnes in 2025-26 from 757.09 tonnes in 2024-25
- Gold imports were USD 58 billion in 2024-25
Why this matters
The import-driven policy backdrop increases regulatory and demand uncertainty, making partnerships or expansion plans in gold-heavy categories more risk-sensitive.
What to watch
- Any Finance Ministry or RBI action on gold import duty, import restrictions, bullion financing, gold-loan rules or gold-linked savings products.
- Monthly gold-import values and volumes, especially whether high value growth continues while volumes decline.
- Festive and wedding-season sales updates, advance bookings, same-store growth and management commentary from Titan and Kalyan.
- Domestic gold-price moves versus international prices and the rupee, which determine affordability and inventory gains or losses.
- Growth in old-gold exchange, recycled-gold availability and studded-jewellery contribution to retailer margins.
- Consumer shift toward gold ETFs, sovereign-style savings alternatives or digital gold if physical-buying restraint is reinforced.
- Expect Titan and Kalyan to emphasise old-gold exchange, recycling, lower-carat or lighter-weight collections, instalment plans and studded-jewellery mix to protect affordability.
- Monitor whether organised chains accelerate share capture as smaller jewellers face greater inventory-financing and compliance pressure.
- Expect possible government focus on reducing bullion-import dependence through recycling incentives, domestic sourcing initiatives or measures that discourage speculative physical-gold purchases.
- Near-term equity performance is likely to remain more sensitive to gold-price direction, demand commentary and policy headlines than to a single appeal from the Prime Minister.