Led by Manappuram Finance, shares of non-banking finance companies providing loan-for-gold fell sharply on the bourses, on Thursday, amid a slump in the price of the precious metal.
Manappuram Finance tumbled 9.9 per cent to close the day at Rs 46.40 on the Bombay Stock Exchange (BSE), while Muthoot Finance plummeted by seven per cent to settle at Rs 156.60. Similarly, Mahindra & Mahindra Finance settled 0.47 per cent lower, at Rs 640.
Gold recorded its steepest fall in over two months and lost Rs 800 to Rs 28,140 per 10g, on frantic selling by stockists ona weak global trend and sluggish domestic demand.
Traders said selling pressure gathered momentum as the metal in markets abroad dipped below $1,600 an ounce, on deepening euro-zone debt crisis and boosting the dollar. In the broader market, heavy volatility pulled down the Sensex by 44.67 points.