Jewellery stocks lose sheen; drop for 2nd day after PM Modi's austerity appeal

New Delhi: Jewellery stocks declined for the second day on Tuesday, with Thangamayil Jewellery tumbling over 8 per cent, after Prime Minister Narendra Modi called for postponing the purchase of gold for one year to save foreign exchange amid the West Asia crisis.

Shares of Thangamayil Jewellery plummeted 8.32 per cent, Senco Gold plunged 6.39 per cent, PC Jeweller 6.19 per cent, Kalyan Jewellers 6.10 per cent, Sky Gold And Diamonds 5.94 per cent, Tribhovandas Bhimji Zaveri 5.89 per cent and Titan Company declined 3.60 per cent on the BSE.

Jewellery stocks had faced massive selling pressure on Monday also, with Kalyan Jewellers tumbling over 9 per cent.

Amid a widespread sell-off, the 30-share BSE Sensex tanked 1,456.04 points, or 1.92 per cent, to settle at 74,559.24. The 50-share NSE Nifty dropped 436.30 points, or 1.83 per cent, to end at 23,379.55.

Prime Minister Modi had on Sunday called for judicious use of fuel, postponement of gold purchases and foreign travel, among other measures, to conserve foreign exchange amid the West Asia crisis.

"Sectorally, the damage remained widespread. Consumer durables, jewellery, and travel-linked counters witnessed heavy selling pressure as markets began pricing in weaker discretionary spending and tighter household budgets in the coming quarters," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.