Manappuram Finance, Muthoot Finance, other gold financier stocks drop up to 3%. Here's why

Shares of Manappuram Finance, Muthoot Finance and IIFL Finance fell up to 3 percent as gold prices declined on global cues. Falling US rate cut expectations and a stronger dollar pushed MCX gold futures down Rs 5,863 in two days to Rs 1,40,666 per 10 grams, with bullion slipping below the $4,000 per ounce mark globally. Lower gold prices reduce the value of collateral pledged for gold loans, requiring borrowers to pledge additional jewellery to access the same loan amount.