Shares of travel, hospitality, and jewellery companies witnessed sharp declines for the second consecutive trading session after Prime Minister Narendra Modi urged citizens to reduce non essential imports, including foreign travel, fuel consumption and gold purchases.
Travel and hospitality stocks came under pressure amid concerns over a potential slowdown in outbound tourism and discretionary spending. InterGlobe Aviation, which operates IndiGo, declined nearly 5%, while Indian Hotels Company (IHCL), SpiceJet, Easy Trip Planners and Yatra Online also registered losses during trading sessions following the Prime Minister’s remarks. Reports indicated that travel companies have already started witnessing a 10% to 15% decline in overseas travel inquiries.
Market sentiment was additionally impacted by elevated crude oil prices and geopolitical tensions in West Asia, which have increased concerns around aviation fuel costs and international travel demand.
The broader selloff also extended to jewellery companies after the Centre increased customs duty on gold and silver imports to 15% from the earlier 6%, effective May 13. The revised import structure includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess.
Following the announcement, shares of Titan, Kalyan Jewellers, Senco Gold and Thangamayil Jewellery came under pressure as investors reacted to concerns over higher gold prices and weaker consumer demand. According to reports, the higher customs duty is aimed at reducing gold imports, easing pressure on foreign exchange reserves and supporting the Indian rupee amid rising global uncertainty and elevated commodity prices.
Industry observers said the move could increase domestic gold prices ahead of the festive and wedding season, potentially affecting jewellery demand across organised retail markets. Reports also highlighted concerns that higher import duties could encourage an increase in unofficial gold imports and smuggling activities.
The developments come as the government intensifies efforts to manage India’s import bill and strengthen domestic economic stability amid volatility in global energy and commodity markets.
