Markets Fall; Jewellery Stocks Hit by PM Modi’s Gold Remark
New Delhi: Indian stock indices opened in the red on Monday as geopolitical tensions, rising crude oil prices and concerns over foreign exchange outflows took a toll on investor confidence.
Weak global signals from Wall Street futures and Prime Minister Narendra Modi’s call to halt foreign exchange outflows added pressure on domestic markets.
At the opening, BSE Sensex was at 76,378.03 points, down 950.16 points, or 1.23 percent. NIFTY 50 opened at 23,900.25 points, down 275.90 points or 1.14 percent.
The jewelery industry witnessed sharp selling after Prime Minister Modi appealed to citizens to preserve their foreign exchange reserves by avoiding unnecessary foreign travel, foreign holidays and non-essential gold purchases for a year.
Following the announcements, shares of Senco Gold Limited fell by 8.98 percent to Rs 332.60, while Titan Company Limited fell by 5.34 percent to Rs 4,268.10.
Kalyan Jewelers India Limited fell 7.43 percent to 393.00 rupees and PC Jeweler Limited fell 3.89 percent to 9.13 rupees.
Banking and markets expert Ajay Bagga said investors were concerned about disruptions in energy supply and the economic impact of rising oil prices.
“Indian markets indicate a weak opening. Expectations for an increase in petrol and diesel prices this week are high as OMC losses are at 30,000 crore per month,” Bagga said.
He also noted concerns about rising tensions between the US and Iran, stating that markets continue to focus on artificial intelligence and the Big Tech rally while ignoring geopolitical risks.
Bagga said that Israeli Prime Minister Benjamin Netanyahu’s statements regarding the ongoing military operations against Iran’s nuclear facilities increased uncertainty.
He added that China’s attitude towards Iran has reduced expectations for a possible Trump-Xi summit, and both sides are expected to approach the negotiations cautiously.
Meanwhile, Anand Rathi Chief Economist Sujan Hajra said Indian markets remain relatively resilient despite global uncertainty.
He noted that broader markets, particularly mid-cap and small-cap stocks, continue to perform well, supported by auto and IT stocks, while banks and metals stocks face pressure due to disappointing earnings and global risks.
Hajra said India’s macroeconomic fundamentals remain strong, with PMI activity improving and domestic demand stable.
But he warned that high crude oil prices, supply chain disruptions and tensions around the Strait of Hormuz continue to pose inflationary risks.
“Growth continues, but global risks are starting to make resilience more expensive,” Hajra said.
