Jewelry stocks tumble after PM Modi urges skipping non-essential gold
Business
Jewelry stocks took a big hit on Monday after Prime Minister Modi asked people to skip buying non-essential gold for the next year.
At a rally, he suggested saving foreign exchange by cutting back on things like overseas trips and weddings abroad.
Investors got worried about less demand for jewelry, and shares dropped fast: Senco Gold slid 8.7%, Kalyan Jewellers fell 8.3%, and Titan lost 6.5%.
Even the Sensex and Nifty were down at the time cited.
Analysts cite oil inflation Mideast tensions
Market analysts say it wasn't just Modi's speech: rising oil prices, inflation, and global tensions (especially in the Middle East) made investors even more nervous.
All these factors together pushed jewelry stocks down on Monday.