Jewellery, Travel Stocks Crash 10% After PM Modi’s Appeal To Cut Gold Purchase, Foreign Travel

The rout in the benchmark indices on Monday was led by jewellery, travel, and oil stocks.

Stocks like Titan, Kalyan Jewellers, Senco Gold, IndiGo, EaseMyTrip, Indian Oil, and Hindustan Petroleum were among the biggest losers on the bourses on Monday.

The steep declines in these stocks were triggered by Prime Minister Narendra Modi’s comments on Sunday. He urged people not to buy gold for a year, cut unnecessary foreign travel, and reduce fuel usage in order to face the Gulf crisis.

The stock of Titan, the maker of Tanishq-branded jewellery, fell as much as 8 percent during early trade on Monday.

The stock had opened 3.6 percent lower at Rs 4,350 compared to the closing price of Rs 4,513.40 on Friday.

During trade on Monday, the stock further fell to Rs 4,151 apiece, which was about 8 percent lower. Titan was trading as the biggest loser among the Nifty 50 scrips.

Similarly, stocks of other gold and jewellery companies fell by over 10 percent. While the stock of Senco Gold fell up to 11 percent, shares of Kalyan Jewellers declined almost 10 percent in early trade.

Companies related to travel and leisure also faced pressure, with airline major IndiGo’s scrip declining by 5.2 percent. The stock had opened 1.6 percent lower at Rs 4,449.95 compared to the previous close of Rs 4,522.20 apiece.

It further fell to Rs 4,285.05 apiece, which was 5.2 percent lower than Friday’s closing level.

The stock of Easy Trip Planners, the parent company of EaseMyTrip, also declined up to 3.7 percent after opening lower on Monday.

Stocks of oil marketing companies also faced losses on Monday. While Indian Oil stock was trading at a discount of 2.5 percent, Hindustan Petroleum shares were down by 2.8 percent.

These stocks were also impacted by the surge in crude oil prices on Monday after United States President Donald Trump rejected Iran’s peace plan.

The Gulf war is about to complete 10 weeks, and the stalemate between the warring sides remains unresolved, raising inflation concerns across the globe.

PM Modi’s appeal to adopt Covid-like measures has sparked speculation that the government may be planning tough decisions ahead.