Updates

** Indian gems and jewellery stocks fall 5.5%-11% after PM Narendra Modi urges citizens to avoid buying gold to save foreign exchange, following U.S. President Donald Trump rejection of Iran's response to a peace proposal

** Titan TITN.NS falls as much as 7.95% to 4,150.10 rupees; Kalyan Jewellers KALN.NS drops ~10% to 382.10 rupees; Senco Gold SENC.NS sheds ~11% to 325.05 rupees

** Titan, Kalyan Jewellers reported quarterly results on Friday; y/y net profit up ~35.4% and ~118%, respectively, driven by strong demand

** Brokerages say TITN's market-share gains and buyer growth recovery continue to support medium-term growth outlook despite elevated gold prices

** Expect resilient margins aided by lightweight jewellery, exchange schemes

** Analysts say KALN's rapid store expansion in newer markets continues to support growth

** Operating leverage is helping offset margin pressure from higher gold prices, franchise mix for Kalyan