Shares of two gold finance companies hit their upper circuit limits of 5% each at 13:52 IST on BSE on market buzz that the central bank may allow them to lend 75% of the value of jewellery compared with 60% at present.
Muthoot Finance and Manappuram Finance were both locked at their respective 5% upper circuit of Rs 104.70 and Rs 15.73.
The S&P BSE Sensex was down 16.39 points, or 0.08% at 20,667.13.
Shares of Muthoot Finance had underperformed the market over the past one month till 25 October 2013, rising 2.94% compared with the Sensex's 4.17% rise. The scrip had, however, outperformed the market in past one quarter, rising 6.29% as against Sensex's 4.44% rise.
Shares of Manappuram Finance had underperformed the market over the past one month till 25 October 2013, rising 0.60% compared with the Sensex's 4.17% rise. The scrip had also underperformed the market in past one quarter, sliding 4.09% as against Sensex's 4.44% rise.
Last month, the Reserve Bank of India (RBI) had tightened rules for gold non-banking finance companies, and had kept the loan-to-value ratio at 60%.
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