Following Prime Minister Narendra Modi’s recent “Nation First” appeal, the Indian stock market witnessed a sudden and significant impact. His seven appeals including refraining from purchasing gold, curtailing foreign travel, opting for public transport, and promoting Swadeshi products specifically affected shares in the jewelry and import-dependent sectors. In this blog, we will explore the impact of PM Modi’s appeals on the stock market, identify the sectors most heavily affected, examine which companies’ shares declined, and analyze what this entire sequence of events signifies for investors.
What Exactly Did PM Modi Appeal To Citizens?
| PM Modi’s Appeal | Main Economic Objective | Possible Impact on the Stock Market |
|---|---|---|
| Avoid buying gold for 1 year | Reduce gold import bill and dollar outflow | Pressure on jewellery stocks |
| Use public transport and metro more frequently | Reduce fuel consumption | Impact on oil demand-linked sectors |
| Promote Work From Home and virtual meetings | Lower petrol and diesel usage | Positive for IT and digital service sectors |
| Reduce edible oil consumption | Cut edible oil imports | Pressure on edible oil companies |
| Reduce use of chemical fertilizers | Lower fertilizer imports and subsidy burden | Higher volatility in fertilizer sector |
| Prefer Swadeshi and Made in India products | Support domestic manufacturing | Positive for electronics, defence, and manufacturing stocks |
| Avoid foreign travel and destination weddings | Conserve foreign exchange reserves | Impact on aviation and international travel sectors |
The Real Reason Behind the Appeal: India’s Forex Pressure
The primary reasons behind PM Modi’s seven appeals are believed to be the rising import bill, the weakening rupee, and the mounting pressure on India’s forex reserves.
1. Rising Crude Oil Prices
India’s most pressing concern at present is crude oil prices. Due to escalating tensions in West Asia and the crisis in the Strait of Hormuz, Brent crude oil has once again surged above $100 per barrel.India imports approximately 85% of its crude oil requirements from abroad. Consequently, a rise in oil prices has a direct impact on the import bill, inflation, and the Rupee.
| Crude Oil Related Data | Current Situation |
|---|---|
| Brent Crude Price | Above $100/barrel |
| India’s Oil Import Dependency | 85% |
| Estimated Import Bill Impact | Up to ₹17 lakh crore |
2. Pressure on Forex Reserves
India has to spend billions of dollars annually on items such as gold, oil, edible oils, and foreign travel. When imports rise, the pressure on foreign exchange reserves increases.
| Forex Concern | Latest Situation |
|---|---|
| Gold Import Bill | $72 Billion |
| Rupee vs Dollar | Near record low |
| FII/FPI Outflows | ₹2 lakh crore+ |
3. Weakening Rupee Against the Dollar
In recent months, the Rupee has consistently weakened against the Dollar. The primary reasons for this are the rising import bill and selling by foreign investors.
4. Gold Imports Became a Major Issue
The most widely discussed aspect of PM Modi’s appeal was the call “not to buy gold for one year.” The reason behind this is India’s rising gold import bill. India purchases almost its entire requirement of gold from abroad.
| Gold Import Data | Current Situation |
|---|---|
| India’s Gold Import Dependency | 99% |
| FY26 Gold Import Bill | $72 Billion |
| Average Monthly Gold Imports | 60 tonnes |
5. Rising Foreign Travel Spending
Over the past few years, the trend of traveling abroad and hosting destination weddings has surged rapidly. Consequently, a significant amount of dollars is being spent overseas. According to reports, Indians’ overseas travel spending exceeded ₹3.5 lakh crore in 2025-26. In light of this, the government is advising against foreign travel.
6. Expensive Edible Oil Imports
India imports approximately 60-65% of its edible oil requirements from abroad. A substantial amount of foreign exchange is spent annually on commodities such as palm oil, soybean oil, and sunflower oil.
7. Fertilizer Imports and Subsidy Burden
India is heavily dependent on fertilizer imports. In particular, a significant portion of fertilizers such as DAP and potash is sourced from abroad.
If global prices rise, the subsidy burden on the government also increases.
8. Push for Domestic Manufacturing
The objective behind emphasizing “Vocal for Local” and Swadeshi products is to reduce imports and support domestic manufacturing.
9. Fear of Future Policy Changes
The market’s biggest concern isn’t just speech, but future policy actions. Investors fear that the government will:
- It may increase the gold import duty.
- It may tighten import restrictions.
- It may introduce new PLI schemes.
- It may relaunch Sovereign Gold Bonds.
Which Sectors Could Be Impacted by PM Modi Appeal?
The impact of Prime Minister Narendra Modi’s “Nation First” appeal is not believed to be limited solely to the gold market. According to market experts, its influence could be observed across various import-heavy and consumer-driven sectors. In particular, pressure may intensify on industries that rely heavily on gold, crude oil, foreign travel, or imported raw materials.
1. The Jewellery Sector May Face the Biggest Impact
Following PM Modi’s appeal to “refrain from buying gold for one year,” jewellery stocks witnessed an immediate and significant decline. Investors fear that gold demand could slow down and that the government might increase import duties in the future.
2. Oil & Energy Sector Could Remain Under Pressure
If crude oil remains above $100 per barrel for an extended period, the margins of oil marketing companies could be impacted.
3. Aviation & Travel Sector May See Weak Sentiment
Concerns within the travel industry have intensified following an appeal to avoid foreign travel. According to a Reuters report, overseas travel inquiries have witnessed a decline of 10-15%. This could exert short-term pressure on airlines, travel companies, and the hotel sector.
4. Import-Dependent Companies Could Face Pressure
The impact of a weakening rupee and rising import bills could also be felt by companies dealing in electronics, edible oils, and imported raw materials. If the government imposes import restrictions or levies higher duties, volatility in these sectors could increase.
5. IT & Pharma Exporters Could Benefit
While import-heavy sectors are under pressure, export-oriented companies could stand to benefit from a weaker rupee. IT services and pharmaceutical companies generate their earnings in dollars; consequently, their revenue growth may appear stronger when the rupee depreciates.
Sectors That May Benefit From a Weak Rupee
Following PM Modi’s appeal, the most widely discussed topics in the market are the weakening rupee and the rising import bill. However, a weak rupee is not necessarily negative for every sector; there are certain export-oriented sectors that could stand to benefit directly from it.
Why Do Export-Oriented Companies Benefit ?
- Dollar earnings yield higher value when converted into rupees.
- The profitability of export companies can improve.
- A weak rupee enhances global competitiveness.
| Sector | Expected Impact |
|---|---|
| IT Services | Positive |
| Pharma Exporters | Positive |
| Specialty Chemicals | Positive |
| Textile Exporters | Positive |
Market experts believe that if the rupee remains weak for an extended period, export-focused companies could demonstrate better performance in the short term, particularly those in the IT and pharma sectors.
Conclusion
The impact of PM Modi’s “Nation First” appeal was not limited merely to sentiment; rather, its effects were directly visible in the stock market and across various sectors. A decline in jewelry stocks, a weakening rupee, and rising crude oil prices have heightened investor concerns. In the near future, the direction of the market will depend significantly on government policies, crude oil prices, and the status of foreign exchange reserves. Under these circumstances, investors should focus more on macroeconomic signals rather than succumbing to short-term panic.
Frequently Asked Questions (FAQs)
Why did jewelry stocks fall after PM Modi’s appeal?
After PM Modi’s appeal to reduce gold buying, investors feared a slowdown in demand, which is why jewelry stocks fell.
Is PM Modi’s appeal negative for gold investors?
No, according to experts, gold is still considered a long-term hedge.
Which sectors may benefit from a weak rupee?
IT, pharmaceutical, and export-oriented sectors may benefit from a weak rupee.
Why is the government worried about gold imports?
India buys most of its gold from abroad, which increases pressure on forex reserves.
Can gold import duty increase in India?
Market experts believe that gold import duty may increase in the future.
