Shares of gold loan companies, jewellery makers fall up to 12%
Mumbai: Continuing their slide for the second straight session, shares of gold loan companies like Manappuram Finance and jewellery makers on Tuesday fell in early trade tracking weakness in gold prices.
Muthoot Finance's stock tanked 12 percent to Rs 115.6, while Manappuram Finance plunged 9.77 percent to Rs 15.70 -- its lowest trading permissible limit for the day on the BSE.
Among jewellery makers, Tribhovandas Bhimji Zaveri lost 5.78 percent, while shares of Gitanjali Gems fell by 2.64 percent.
"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 ETF's 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 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 1145 hrs.