Jewelry and tourism-related stocks experienced significant selling pressure on Monday following Prime Minister Narendra Modi’s call for citizens to limit discretionary spending on gold purchases, overseas travel, and fuel consumption. This initiative aims to alleviate the strain on India’s foreign exchange reserves amid escalating geopolitical tensions in West Asia.
Conversely, electric vehicle (EV) and green mobility stocks surged on expectations of accelerated EV adoption aligned with the government’s emphasis on fuel conservation. Modi encouraged citizens to reduce reliance on petrol and diesel by utilizing metro and public transportation, avoid unnecessary international travel, and postpone non-essential gold purchases for a year.
The jewelry sector faced heightened selling activity due to concerns over decreased near-term demand. Shares of Titan Company fell 6.73 percent, closing at ₹4,205.60 after reaching a low of ₹4,150.10. Kalyan Jewellers India saw its shares drop over 9 percent to close at ₹385.20 after hitting a low of ₹382.10. Other jewelry firms such as P N Gadgil, Senco Gold, Thangamayil Jewellery, BlueStone Jewellery, and Sky Gold and Diamonds witnessed declines of around 9 percent.
Abhinav Tiwari, Research Analyst at Bonanza, noted that the government’s appeal to decrease gold purchases is geared towards alleviating pressure on India’s foreign exchange reserves in light of rising crude oil prices and a weakening rupee. India’s gold import bill escalated to a record $72 billion in fiscal year 2026, up from $58 billion in fiscal year 2025, despite lower import volumes. The conflict in West Asia has further aggravated the trade deficit and affected the rupee.
Khushi Mistry, also a Research Analyst at Bonanza, observed that while the jewelry sector may experience immediate demand pressure ahead of the upcoming festive and wedding season, India’s traditional gold demand is unlikely to be permanently affected without policy measures like increased import duties.
In the tourism and aviation sector, InterGlobe Aviation, the parent company of IndiGo, experienced a 5 percent decline to ₹4,299.40 on the NSE, with concerns that reduced leisure and international travel could hinder passenger traffic growth. Hospitality stocks, including ITC Hotels, Mahindra Holidays & Resorts India, Indian Hotels Company, Leela Palaces, and Chalet Hotels, fell between 1-3 percent.
Online travel booking stocks also faced pressure, as Le Travenues Technology dropped 3 percent to ₹163.10, and Yatra Online fell over 5 percent, closing at ₹102.31. Mistry noted that the outbound tourism and aviation segment is more susceptible due to the discretionary nature of overseas vacations and destination weddings, which consumers may easily postpone. However, domestic tourism, hospitality, and resort operators could benefit if travelers increasingly pivot toward local vacations.
Meanwhile, electric vehicle and green mobility stocks gained traction, led by Ather Energy, which rose 6 percent to ₹969.45. JBM Auto shares increased by 5 percent to close at ₹681.65, and Ola Electric Mobility shares also gained over 2 percent, settling at ₹36.97. Market experts indicated that the government’s renewed focus on fuel conservation and reduced reliance on imported crude oil may accelerate electric vehicle adoption over the medium term.
Published on May 11, 2026.
