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Continuing their slide for the second straight session, shares of gold loan companies like Manappuram Finance and jewellery makers fell in early trade today tracking weakness in gold prices.
Muthoot Finance’s stock tanked 12 per cent to Rs 115.60, while Manappuram Finance plunged 9.77 per cent to Rs 15.70 — its lowest trading permissible limit for the day on the BSE.
Among jewellery makers, Tribhovandas Bhimji Zaveri lost 5.78 per cent, while the shares of Gitanjali Gems fell 2.64 per cent.
“The confidence in gold has been severely dented given the magnitude and the forcefulness of the recent fall. Fears of a Cyprus gold sale, liquidations in ETFs and unwinding of long positions by institutions in the international markets have contributed to the downfall,” said Kishore Narne, Head of Commodities, Motilal Oswal Securities.
Gold prices had yesterday tumbled by Rs 750 to Rs 27,600 per 10 grams to hit an over 15-month low in New Delhi due to persistent selling by stockists, triggered by a heavy sell-off in global markets.
However, the fall in gold-related stocks was in contrast with a bullish broader market where, the BSE barometer Sensex was trading at 18,579.98, up 222.69 points at 11.45 a.m.
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