Jewellery Stocks Slip After PM Modi's Appeal to Curb Gold Purchases, While TBZ Hits 20% Upper Circuit on GRT Acquisition

Indian jewellery stocks experienced a mixed trend in Tuesday's trading session, reflecting the immediate impact of Prime Minister Narendra Modi's public appeal urging citizens to avoid purchasing gold unless strictly necessary. While major retail giants and industry stocks slipped between 1 and 2 percent under the weight of the Prime Minister's advisory aimed at conserving foreign exchange, Tribhovandas Bhimji Zaveri (TBZ) defied the broader sector downturn to lock at a 20 percent upper circuit following a massive corporate acquisition announcement.

Sector-Wide Decline Following PM Modi's Economic Appeal

The downward pressure across retail jewellery counters followed Prime Minister Modi's firm appeal to the nation regarding precious metal consumption. Warning against unnecessary bullion spending, the Prime Minister stated that citizens should avoid buying gold unless it is an absolute necessity.

This advisory echoes a similar appeal made on May 10 amid escalating West Asia crises, where leadership called upon citizens to partner in strengthening the national economy and preserving foreign exchange reserves. Consequently, leading market counters faced mild selling pressure:

• Titan Company: Traded down 1.03 percent at ₹5,050 on the NSE.

• Kalyan Jewellers India: Slipped 2.25 percent to ₹587.45.

• Thangamayil Jewellers: Declined 1.45 percent to ₹5,333.50.

• Bluestone Jewellery & Lifestyle: Dropped 1.22 percent to ₹807.40.

Tribhovandas Bhimji Zaveri (TBZ) Hits 20% Upper Circuit on GRT Deal

In sharp contrast to the broader market trend, shares of Tribhovandas Bhimji Zaveri (TBZ) surged by the maximum daily limit of 20 percent, hitting the upper circuit at ₹366.50 on the BSE. The explosive rally was triggered by the announcement that GRT Jewellers India Private Limited has entered into a definitive share purchase agreement to acquire a controlling 74.12 percent promoter stake in TBZ.

Commenting on the strategic buyout, GRT Jewellers Managing Director GR Ananthapadmanabhan noted that the acquisition aligns perfectly with the brand's aggressive pan-India expansion strategy, leveraging TBZ's established network of 37 retail stores. Furthermore, GRT Executive Director and CEO R Vijayaraghavan highlighted that the combination of GRT’s experienced leadership and TBZ's professional management team will unlock powerful growth synergies to elevate the iconic jewellery brand to new operational heights.