Indian stock markets witnessed sharp selling pressure on Monday after PM Narendra Modi urged citizens to reduce "non-essential" gold purchases, cut fuel consumption and avoid unnecessary foreign travel amid rising economic uncertainty.

The remarks triggered a major sector-wise reaction across Dalal Street. Jewellery companies and airline stocks suffered steep losses, while electric vehicle (EV) and green mobility firms rallied strongly as investors responded to the government's economic and energy-saving signals.

Global concerns linked to rising crude oil prices, Middle East tensions and pressure on India's foreign exchange reserves also added to the nervous market sentiment.

How Did the Stock Market React to PM Modi Speech?

Investors reacted strongly to Modi's speech because several of his suggestions directly affected key sectors of the economy. His appeal to reduce gold buying immediately impacted jewellery stocks, while his push for lower fuel consumption and reduced foreign travel affected airline and travel-related companies.

At the same time, companies linked to electric mobility and green transport witnessed strong buying interest as markets viewed Modi's remarks as supportive of the EV sector.

Broader market sentiment also weakened due to concerns over rising oil prices, foreign exchange pressure and geopolitical tensions involving West Asia.

Stock Market Reaction to PM Modi Speech: Sensex, Nifty End Deep In Red

Indian benchmark indices ended the day sharply lower amid widespread selling pressure. The BSE Sensex plunged 1,313 points to close at 76,015.28, while the NSE Nifty slipped nearly 1.5% to settle at 23,815.85.

Out of the Nifty 50 stocks, most ended in negative territory as investors shifted away from sectors vulnerable to rising import costs and slowing discretionary spending.

Market experts said concerns over:

• Rising crude oil prices
• Weakness in the rupee
• Global geopolitical tensions
• Pressure on India's forex reserves
• Slowing consumer demand collectively weighed heavily on investor confidence.

Jewellery Stocks Crash After PM Modi's Gold Appeal

Jewellery stocks emerged among the worst performers after Modi appealed to people to avoid unnecessary gold purchases for the next year. Investors feared that lower gold demand, possible import restrictions or tighter government measures could hurt jewellery companies and bullion businesses.

Major losers included:

• Titan Company - down around 7%
• Kalyan Jewellers fell nearly 9%
• Senco Gold - declined about 9%
• PC Jeweller - slipped around 5%

The sharp correction came despite strong long-term demand for gold in India. Analysts said the market interpreted Modi's remarks as a sign that the government remains worried about rising gold imports and pressure on foreign exchange reserves.

EV Stocks Rally After Fuel Saving Push

While jewellery and travel shares witnessed heavy selling, electric vehicle and green mobility stocks attracted strong investor interest.

During his speech, PM Modi encouraged citizens to reduce petrol and diesel consumption, use metro services, adopt work-from-home practices and shift towards electric vehicles wherever possible.

The comments boosted optimism around India's clean mobility sector.

Major gainers included:

• Ather Energy - surged over 6%
• JBM Auto rose more than 4%
• Ola Electric Mobility - gained around 3%
• Olectra Greentech - advanced nearly 3%

Investors believe higher policy support and growing fuel-saving awareness could benefit the EV industry in the long term.

Airlines & Travel Stocks Face Heavy Selling

Airline and travel-related companies also came under strong selling pressure after Modi advised citizens to avoid unnecessary foreign travel and reduce fuel usage.

At the same time, rising crude oil prices have increased concerns about aviation fuel costs, which directly affect airline profitability.

Key losers included:

• InterGlobe Aviation (IndiGo) - down over 4%
• SpiceJet - declined more than 4%
• Thomas Cook - witnessed sharp losses
• ixigo, Yatra Online and Easy Trip Planners fell up to 7%

Travel-related companies faced additional pressure as investors worried about weaker discretionary spending and slower travel demand.

Which Stocks Have Crashed After PM Modi Speech?

Several jewellery, airline and travel-related stocks witnessed sharp losses after PM Modi's appeal and rising concerns over fuel prices and foreign exchange pressure.
Major losers included: