Shares of gold loan financiers came under pressure on Monday, March 23, as a sharp decline in bullion prices dampened investor sentiment across the sector. Stocks of Manappuram Finance and Muthoot Finance fell over 5 per cent during morning trade, mirroring weakness in gold prices.
Manappuram Finance Ltd. shares declined 3 per cent on the BSE at 9.59 am, trading at ₹251.35 after touching an intraday low of ₹249.50 compared to the previous close of ₹259.20.
Muthoot Finance Ltd. dropped more sharply, falling over 5 per cent to an intraday low of ₹3,138 from its previous close of ₹3,316.65. CSB Bank Ltd. also witnessed selling pressure in early deals amid the broader weakness in gold-linked counters.
Gold prices have come under strain due to changing global market dynamics that have reduced the metal’s appeal as a defensive asset. Market experts observed that despite persistent geopolitical tensions, bullion has struggled to retain its traditional safe-haven status in the current macroeconomic environment, prompting traders to trim exposure to gold-backed assets.
The weakness extended beyond lenders to jewellery retailers as well. Shares of Kalyan Jewellers, Thangamayil Jewellery, P N Gadgil Jewellers and Sky Gold and Diamonds declined by up to 5 per cent.
Analysts said investor mood remains cautious as bullion trends continue to dictate price action across gold-linked financial and retail counters, with volatility likely to persist if global cues remain uncertain.