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Shares of gold finance companies such as Muthoot Finance and Manappuram Finance hit multi-years low on BSE after prices of the yellow metal slid to thirty-three month low in international market.
The gold price — currently at $1,283 an ounce — has fallen 7.9% over the past one month and 24 per cent in past six months.
Muthoot Finance is trading lower by 5.3% at Rs 107, hits a record low of Rs 105.65 in intra-day trades on BSE. Manappuram Finance has dipped 9.4% to Rs 12.05, its lowest level since June 2009.
Both these stocks have fallen more than 25% each since June 5, after the government increased a hike in gold import duty to 8% from current 6% in order to curb extremely high demand for the yellow metal.
Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices.
The gold price — currently at $1,283 an ounce — has fallen 7.9% over the past one month and 24 per cent in past six months.
Muthoot Finance is trading lower by 5.3% at Rs 107, hits a record low of Rs 105.65 in intra-day trades on BSE. Manappuram Finance has dipped 9.4% to Rs 12.05, its lowest level since June 2009.
Both these stocks have fallen more than 25% each since June 5, after the government increased a hike in gold import duty to 8% from current 6% in order to curb extremely high demand for the yellow metal.
Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices.
