Titan, Senco Gold Shares Decline Amid Government Advisory on Gold Purchases

Economic Crisis: Titan, Senco Gold, and Other Jewellery Stocks Plummet Up to 10% on May 11

The Indian stock market witnessed a significant decline on May 11, with Titan and other jewellery stocks falling up to 10% in response to Prime Minister Narendra Modi's call for austerity measures to strengthen the economy. The measures, announced on May 10, include postponing the purchase of gold and foreign travel for one year, in an effort to conserve foreign exchange due to the crisis caused by the West Asia conflict.

Market Reaction

At 9:50 am on May 11, Titan shares emerged as the top Nifty loser, falling 7% after touching its all-time high level on Friday following the March quarter results. Other jewellery stocks, including Kalyan Jewellers and Senco Gold, were trading 5-10% lower. The Sensex was down 1,045.91 points or 1.35% at 76,282.28, while the Nifty was down 298.35 points or 1.23% at 23,877.80.

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About 1,065 shares advanced, 2,459 shares declined, and 170 shares were unchanged. All sectoral indices were in the red, with Nifty Consumer Durables being the worst performer.

Impact on Sectors

The industries related to the austerity call, including petroleum, chemical fertilisers, gold, air travel, hotel, and related sectors, will be sentimentally impacted. Sectors like pharmaceuticals, which will not be impacted in any manner, will remain resilient. The call for austerity has slightly negative implications for economic growth in FY27.

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