Muthoot, Manappuram shares plunge as gold prices melt

Updated: Tuesday, April 16, 2013, 9:57 [IST]

Shares in gold finance companies dropped sharply for a second day in a row with Muthoot Finance falling 8 per cent per cent, while Manappuram Finance was down another 9 per cent.

The drops comes largely as a result of a fall in gold prices and worries that the fall in gold prices would mean that there is lesser hedge against the jewllery collateral that gold loan companies have.

Shares of Gold and gold ornament retailers also fell with PC Jeweller dropping 1 per cent, while Tribhoovandas Bhimji Zaveri dropped another 2 per cent and Thangamayil fell 4.5 per cent.

International gold prices have now fallen by as much as 20 per cent, ever since they peaked in 2011. Also read