Muthoot Finance, Manappuram Finance shares decline up to 3.5% as gold prices hit multi-month lows

Shares of gold loan NBFCs Muthoot Finance and Manappuram Finance declined up to 3.5% on Thursday after gold prices slipped to multi-month lows amid rising expectations of a US Federal Reserve rate hike. Muthoot Finance fell 3.5% to around ₹3,027 while Manappuram Finance dropped 3% to ₹309, with analysts warning that sustained gold price weakness could raise NPAs and dampen lending prospects for the sector. MCX gold futures fell ₹5,529 per 10 grams to ₹1,40,928 on Wednesday, their lowest since March, pressured by a hawkish new Fed Chair and a stronger US dollar.