Modi Urges Indians to Stop Buying Gold, Jewelry Stocks Fall

Prime Minister Narendra Modi has called on Indians to stop buying gold for at least a year to protect the country's foreign-exchange reserves, a move that has sent jewelry stocks tumbling.

Modi's appeal, made during a national address, targets India's massive gold demand, which is deeply rooted in cultural traditions such as weddings and festivals. The government is concerned about the strain on foreign reserves as gold imports widen the trade deficit. Jewelry retailers and gold loan companies saw their shares drop sharply in early trading, reflecting investor fears of a prolonged demand slump. For traders tracking these stocks, NowPrice's equities page offers real-time pricing on affected companies.

This policy shift could reshape India's gold market, which is one of the world's largest. Investors are now watching for any follow-up measures, such as import duty hikes or stricter gold loan regulations. The coming weeks will reveal whether Modi's moral suasion alone can curb demand, or if more forceful steps are needed to stabilize the balance of payments.