Shares of two gold loan companies fell by 8.56% to 9.77% at 12:03 IST on BSE on recent steep slide in gold prices
Muthoot Finance (down 8.56%) and Manappuram Finance (down 9.77%), edged lower.
Meanwhile, the BSE Sensex was up 221.95 points, or 1.21% at 18,579.75.
Muthoot Finance had underperformed the market over the past one month till 15 April 2013, sliding 35.31% compared with the Sensex's 5.51% fall. The scrip had also underperformed the market in past one quarter, falling 40.3% as against Sensex's 8.15% fall.
Manappuram Finance had underperformed the market over the past one month till 15 April 2013, sliding 49.05% compared with the Sensex's 5.51% fall. The scrip had also underperformed the market in past one quarter, falling 60.72% as against Sensex's 8.15% fall.
Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices. Bullion metal prices plunged on Monday, 15 April 2013, as the metal extended its dive into a second straight session. Gold for June delivery ended lower by $140.3 (9.3%) at $1,361.1 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Prices had shed 4.7% last week.
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