Bearish Risk: Gold Demand Weakens in March; TITAN, PCJEWELLER Under

Indian gold demand, after a strong start to 2026, experienced a notable weakening in March. This decline is attributed to increased price volatility, which made consumers wary of making purchases. Despite earlier positive trends like strong retail sales and ETF inflows, the recent shift indicates a cautious consumer outlook.

This development is significant for the Indian market as gold is a major cultural and investment asset. Weakening demand directly impacts the revenue and profitability of jewellery retailers and gold loan companies. It also signals potential shifts in discretionary spending patterns, which could have broader implications for consumer-facing sectors.

Jewellery retailers like Titan Company (TITAN), PC Jeweller (PCJEWELLER), and Rajesh Exports (RAJESHEXPO) are likely to face negative pressure due to reduced sales volumes. Gold loan NBFCs such as Muthoot Finance (MUTHOOTFIN) and Manappuram Finance (MANAPPURAM) could also see an impact on their asset quality and loan growth if gold prices remain volatile or decline, affecting collateral values.

Traders should monitor upcoming quarterly results from jewellery companies for confirmation of demand trends. Watch for gold price stability or further volatility, as this will dictate consumer confidence. Also, keep an eye on broader economic indicators and festival season forecasts for any signs of demand revival.

• •Indian gold demand showed strength in early 2026.
• •Retailers saw significant revenue growth, boosted by weddings and festivals.
• •Gold ETFs experienced substantial inflows, extending a positive trend.
• •Despite some profit-taking, investor interest in gold remained robust.
• •Expansion plans by jewellers indicate confidence in the market.