Shares of several Bengaluru-linked real estate companies and jewellery retailers extended their decline for a second consecutive session on May 12, as investors reacted cautiously to Prime Minister Narendra Modi’s recent remarks emphasising austerity and national preparedness during a period of heightened geopolitical tension. The weakness was particularly visible in premium consumption and urban discretionary sectors, where market participants fear that softer consumer sentiment and delayed spending decisions could emerge if the situation escalates further.

According to a report, domestic brokerage JM Financial said the Prime Minister’s speech should be viewed as an early market signal ahead of potential economic or administrative measures that could be introduced in the coming weeks if the conflict environment continues.

The market reaction indicates that investors are beginning to reassess sectors linked to aspirational spending, particularly those dependent on affluent urban demand. Bengaluru-based real estate developers were among the most affected as traders anticipated possible delays in residential buying decisions, especially in premium and luxury housing categories. Jewellery stocks also remained under pressure amid concerns that discretionary purchases could weaken if households adopt a more cautious spending approach.

The decline is notable because both sectors had previously emerged as key beneficiaries of India’s post-pandemic urban consumption revival. Bengaluru’s property market, in particular, has seen strong momentum over the last two years, driven by technology-sector hiring, startup wealth creation, and premium housing demand. Similarly, organised jewellery retailers had benefited from formalisation trends, wedding demand, and rising consumer preference for branded offerings.

However, the latest policy messaging appears to have temporarily shifted investor focus from growth optimism to capital preservation and demand sustainability.

JM Financial’s interpretation of the Prime Minister’s remarks is significant because markets often respond not only to concrete policy actions but also to political signalling. Historically, periods of geopolitical stress or national-security mobilisation in India have led to increased caution in sectors tied to discretionary consumption, travel, luxury products, and premium housing.