Muthoot Finance (down 13.41%) and Manappuram Finance (down 13.39%), edged lower.
Meanwhile, the BSE Sensex was up 1.87 points, or 0.01% at 18,542.76.
Shares of Muthoot Finance had underperformed the market over the past one month till 24 June 2013, sliding 27.02% compared with the Sensex's 5.90% fall. The scrip had also underperformed the market in past one quarter, falling 39.72% as against Sensex's 1.04% fall.
Shares of Manappuram Finance had underperformed the market over the past one month till 24 June 2013, falling 29.50% compared with the Sensex's 5.90% fall. The scrip had also underperformed the market in past one quarter, falling 49.15% as against Sensex's 1.04% fall.
Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices.
Spot gold prices are under pressure on the back of depreciating rupee against the dollar and worries over early end to the stimulus by the US Federal Reserve.
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On the multi commodity exchange (MCX), Gold August contract was trading at Rs 26,605 per 10 gram, down Rs 120, or 0.45%.
Gold demand has also slowed in India following measures taken by the government to curb gold imports.
Earlier this month, the government raised the import duty on gold by 2% to 8%. The Reserve Bank of India (RBI) later clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. The RBI also prohibited credit of any kind from suppliers, or bullion banks for import of gold for domestic use.
The government and the RBI have taken several measures in the past few months to tame gold imports, which is partly blamed for the widening of the current account deficit (CAD). CAD, the difference between inflow and outflow of foreign currency, touched an all-time high of 6.7% of the gross domestic product (GDP) in the quarter ended December 2012.
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