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Gold loan firms face pressure as bullion prices extend decline
Gold loan stocks weakened as bullion prices fell sharply, impacting collateral values and triggering market concerns over loan-to-value stability.
Shares of gold loan companies declined after gold prices fell by nearly ₹13,500 per 10 grams over recent sessions. Lower bullion prices reduced collateral value, raising concerns around loan-to-value ratios. Stocks of Muthoot Finance and Manappuram Finance dropped up to eight percent. The correction followed global commodity weakness and cautious sentiment after the budget announcements influenced the short-term precious metal outlook.