Shares of India’s largest gold loan non-banking financial companies faced renewed selling pressure on Thursday, with Muthoot Finance and Manappuram Finance declining by as much as 3.5% in trade.
The sell-off coincided with spot gold prices slipping to multi-month lows, driven by a shifting macroeconomic backdrop that has weighed heavily on precious metals.
89 per ounce, a 0.4% decline that pushed the metal near its lowest level in seven months.
Spot gold extended its losses to settle at $3,985.89 per ounce, a 0.4% decline that pushed the metal near its lowest level in seven months.
This marks a continuation of the pressure that began earlier in the week, when gold and silver futures fell sharply as selling in technology stocks—fueled by fears of higher interest rates—spilled over into the commodities market.
Gold futures had previously dropped 1.5% to settle at $4,000, signaling a broader risk-off sentiment among investors.
The decline in gold prices poses a direct headwind for gold loan NBFCs, whose business models are intrinsically linked to the value of their collateral.