Shares of two gold loan companies fell by 9.59% to 15.87% at 11:00 IST on BSE as gold in futures trading dipped below Rs 28000 on the Multi Commodity Exchange of India on Saturday, 13 April 2013.
Muthoot Finance (down 15.87%) and Manappuram Finance (down 9.59%), edged lower.
The BSE Sensex was down 30.75 points, or 0.17% at 18,211.81.
Gold prices fell below the Rs 28,000 per 10 gram level to close at Rs 27680 per 10 gram on Saturday, 13 April 2013, in the Indian market.
Gold's biggest ever fall to hit a one-year low has been attributed to investors quitting the safe-haven investment after disappointing US retail sales data and moves by central banks to sell their holding of the yellow metal.
Meanwhile, gold prices on Multi Commodity Exchange of India (MCX) declined in early trade today, 15 April 2013. At 11:00 IST, MCX Gold June contract was trading at Rs 27,173, down Rs 752, or 2.69%.
A sharp decline in gold prices will potentially reduce the value of the collateral held by gold loan companies.
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