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Real estate, jewelry shares fall for 2nd day: Here's why
12 May 2026

Real estate and jewelry stocks have been hit by a wave of selling pressure for the second consecutive day.

The downturn follows Prime Minister Narendra Modi's appeal to Indians to cut down on gold purchases for the next year and work from home amid the West Asia conflict.

Brigade Enterprises, Prestige Estates, and Puravankara saw their shares fall up to 3%, while Titan, Kalyan Jewellers and Senco Gold witnessed declines of up to 5% today.

Brokerage views on potential government measures
Response

JM Financial has said that PM Modi's speech should be viewed as a market signal ahead of potential fiscal and monetary measures.

The brokerage firm expects these measures to protect the Indian currency from further depreciation if the West Asia conflict continues.

They also anticipate a gradual approach from the government, which could include fuel price hikes in phases, temporary reductions in Liberalized Remittance Scheme (LRS) limits, and increased duties on gold imports.

Importance of managing imports
Import management

Jateen Trivedi from LKP Securities has said that Modi's call to delay gold purchases should be seen in the light of India's macroeconomic stability and import management.

He explained that India is one of the largest importers of gold in the world, and high imports during periods of high crude oil prices and global uncertainty can worsen trade deficit pressures on the rupee.

Short-term impact on jewelry demand and discretionary purchases
Market impact

Trivedi also noted that while the PM's appeal is unlikely to change long-term Indian demand for gold, it could slow discretionary purchases in the short term.

This is especially true for jewelry demand and could create a cautious sentiment across bullion and jewelry-related businesses.

The jewelry sector is already facing a near-term demand overhang due to the PM's call ahead of the wedding and festive season.