Here’s why titan and kalyan jewellers fell over 8% today

Shares of Titan Company and Kalyan Jewellers India Ltd came under sharp selling pressure on amid growing concerns that softer gold buying sentiment could impact jewellery demand and sales growth across the organised retail sector.

Titan shares fell nearly 6% during the session to around ₹4,224, while Kalyan Jewellers declined over 7% and hit an intraday low of ₹389 on the NSE.

The weakness in jewellery stocks comes after Prime Minister Narendra Modi reportedly urged citizens to avoid buying gold for a year and instead focus on productive investments and conserving fuel. The comments triggered concerns that discretionary gold purchases could slow down in the near term, particularly at a time when gold prices are already hovering near record highs.

Investors appear worried that any sustained moderation in gold buying could directly impact sales growth for organised jewellery retailers, especially companies that derive a majority of their revenue from jewellery businesses.

For Titan Company, jewellery remains the core business driver. According to company disclosures and brokerage reports, the jewellery segment contributes around 85-90% of Titan’s overall revenue, led primarily by its flagship brands Tanishq, Mia, Zoya and CaratLane.

Titan’s jewellery business has been witnessing strong momentum in recent quarters despite elevated gold prices. The company recently reported that jewellery sales grew sharply in Q4 FY26, helping total annual revenue cross the ₹75,000 crore mark for the first time. However, analysts believe the sector remains highly sensitive to consumer sentiment and gold affordability.

Market participants fear that if gold purchases slow meaningfully, jewellery retailers may face pressure on showroom footfalls, wedding demand and overall revenue growth. Companies could also find it difficult to sustain aggressive expansion plans and ambitious growth targets if consumer demand weakens over the coming quarters.

Kalyan Jewellers, which has rapidly expanded its retail footprint across India and overseas markets, has also been one of the strongest-performing jewellery stocks over the past year. However, the stock witnessed heavy profit booking amid concerns that lower discretionary spending on jewellery may impact future sales momentum.

The sharp correction across jewellery counters also reflects concerns around already elevated valuations in the sector. Stocks such as Titan and Kalyan Jewellers had rallied significantly over the past year on expectations of strong wedding demand, increasing organised market share and premiumisation trends.

Analysts said rising gold prices were already impacting affordability for middle-income consumers, and any further decline in buying sentiment could affect volume growth across the industry.

Apart from Titan and Kalyan Jewellers, other jewellery stocks including Senco Gold, Thangamayil Jewellery and RBZ Jewellers also traded sharply lower during the session.