Jewellery and tourism-related stocks witnessed sharp selling pressure on Monday after Prime Minister Narendra Modi urged citizens to curb discretionary spending on gold purchases, overseas travel and fuel consumption to help reduce pressure on India’s foreign exchange reserves amid rising geopolitical tensions in West Asia.

In contrast, electric vehicle and green mobility stocks rallied on expectations of faster EV adoption following the government’s push towards fuel conservation.

Modi asked people to reduce petrol and diesel usage by relying more on metros and public transport, avoid unnecessary overseas travel, and defer non-essential gold purchases for one year.

Jewellery stocks bore the brunt of the selling pressure amid concerns over weaker near-term demand. Titan Company shares settled 6.73 per cent lower at ₹4,205.60 after tumbling to a low of ₹4,150.10.. Kalyan Jewellers India shares tanked over 9 per cent to close at ₹385.20 after hitting a low of ₹382.10.

Shares of P N Gadgil, Senco Gold, Thangamayil Jewellery, BlueStone Jewellery and Sky Gold and Diamonds tumbled around 9 per cent.

Forex reserves impact

Abhinav Tiwari, Research Analyst of Bonanza, said the government’s appeal to reduce gold purchases is aimed at easing pressure on India’s forex reserves amid elevated crude oil prices and rupee weakness. He noted that India’s gold import bill surged to a record $72 billion in FY26 from $58 billion in FY25 despite lower import volumes, while higher crude prices due to the West Asia conflict have widened the trade deficit and pressured the rupee.

Khushi Mistry, Research Analyst, Bonanza, said the jewellery sector may see near-term demand pressure ahead of the festive and wedding season, although India’s culturally entrenched gold demand is unlikely to witness a lasting impact without policy measures such as higher import duties.

Tourism, aviation stocks fall

Among travel and tourism-linked stocks, InterGlobe Aviation, the parent company of IndiGo, plunged 5 per cent to ₹4,299.40 on the NSE amid concerns that moderation in leisure and international travel demand could impact passenger traffic growth.

Hospitality stocks such as ITC Hotels, Mahindra Holidays & Resorts India, Indian Hotels Company, Leela Palaces and Chalet Hotels were also down 1-3 per cent.

Online travel booking-related stocks also saw selling pressure, with Le Travenues Technology falling 3 per cent to ₹163.10 and Yatra Online tanking over 5 per cent to ₹102.31.

Mistry of Bonanza said the outbound tourism and aviation segment appears more vulnerable because overseas vacations and destination weddings are discretionary expenses that consumers can postpone easily.

However, the analyst said domestic tourism, hospitality and resort operators could benefit if travellers increasingly shift towards local vacations instead of overseas travel.

EV stocks soar

Meanwhile, electric vehicle and green mobility stocks gained sharply led by Ather Energy that gained 6 per cent higher at ₹969.45.

JBM Auto shares closed 5 per cent higher at ₹681.65. Ola Electric Mobility shares also gained over 2 per cent to settle at ₹36.97.

Market experts said the government’s renewed push towards fuel conservation and reduced dependence on imported crude oil could accelerate electric vehicle adoption over the medium term.

Published on May 11, 2026