Home / Business and Economy / Modi's Plea: Gold, Travel, Fuel Spending Curtailed
Modi's Plea: Gold, Travel, Fuel Spending Curtailed
11 May
Summary
- PM Modi urged citizens to cut spending on gold, travel, and fuel.
- Jewellery and tourism stocks saw sharp declines on Monday.
- Electric vehicle stocks rallied following the government's push.
Prime Minister Narendra Modi has urged Indian citizens to curb discretionary spending on gold, overseas travel, and fuel to safeguard the nation's foreign exchange reserves amidst escalating geopolitical tensions in West Asia. This directive, issued on Monday, has triggered a notable selling pressure on jewellery and tourism-related stocks.
Jewellery stocks bore the brunt, with shares of prominent companies like Titan Company and Kalyan Jewellers India witnessing sharp declines. The government's appeal aims to ease pressure on forex reserves, which have been strained by rising crude oil prices and a weakening rupee, further exacerbated by the conflict in West Asia.
In contrast, the call for fuel conservation has spurred a rally in electric vehicle and green mobility stocks. Companies such as Ather Energy and JBM Auto saw significant gains, reflecting market expectations of accelerated electric vehicle adoption as India pushes for reduced dependence on imported crude oil.
Tourism and aviation stocks also faced headwinds, with concerns over potential moderation in leisure and international travel demand impacting passenger traffic growth. However, analysts suggest domestic tourism could benefit if travellers increasingly opt for local vacations over overseas trips.
