Stocks of gold loan companies, jewellery makers tumble

Shares of gold loan companies like Manappuram Finance and jewellery makers on Monday fell sharply by up to over 13 per cent, following weakness in gold prices which hit over 15-month low.

Muthoot Finance's scrip tanked 13.13 per cent to close the day at Rs 131.35, while Manappuram Finance dived 9.84 per cent to Rs 17.40 on the BSE.

Selling was also seen among jewellery makers with PC Jeweller falling 5.65 per cent, Thangamayil Jewellery (5.45 per cent), Titan Industries (4.37 per cent), Gitanjali Gems (2.40 per cent) and Tribhovandas Bhimji Zaveri (0.86 per cent).

"Heavy

selling in gold put pressure on stock prices of gold loan companies such as Manappuram Finance and Muthoot Finance. Titan also dipped," said Nagji K Rita, Chairman & MD, Inventure Growth and Securities.

Also, gold prices tumbled today by Rs 750 to Rs 27,600 per 10 grams to hit an over 15-month low in New Delhi due to persistent selling by stockists, triggered by a heavy sell-off in global markets.

Meanwhile, in the stock market, the BSE key index settled at 18,357.80, up 115.24 points.