Gold Price Today Crash Hits Manappuram & Muthoot Finance Shares; Stocks Fall Up To 7%
Gold tumbled 2% to ₹1,48,860 on June 10, dragging gold loan stocks sharply lower — here's what it means for Manappuram and Muthoot investors.
Domestic gold prices fell nearly 2% to ₹1,48,860 on Wednesday, pulling Manappuram Finance down ~7% and Muthoot Finance down ~4% intraday. The selloff reflects growing investor concern that falling gold prices could slow loan growth across the gold financing sector.
The sharp correction in gold prices is now directly impacting gold-linked stocks. Shares of major gold financiers fell sharply on Wednesday, June 10, 2026, after a steep decline in domestic and global bullion prices raised concerns around future growth momentum in the sector.
How much did the stocks fall?
Manappuram Finance shares declined nearly 7% to ₹289.45 during the session. Muthoot Finance fell nearly 4% intraday, touching a nine-month low of ₹2,870.45, before closing down 3.09% at ₹2,898.80. Hindustan Zinc fell 3%, while IIFL Finance was down 2%.
| Stock | Decline | Price (approx.) |
|---|---|---|
| Manappuram Finance | ~5.8% | ₹289.45 |
| Muthoot Finance | 2.61% (close); ~4% intraday | ₹2,913 |
| Hindustan Zinc | ~3% | 548 |
| IIFL Finance | ~2% | 498 |
Why did gold prices fall?
Domestic gold prices dropped nearly 2% to around ₹1,48,860 on Wednesday, their lowest level since early May and now below the levels seen before India's recent import duty hike. Last month, India raised import duties on gold and silver from 6% to 15% to curb imports and ease pressure on foreign exchange reserves.
Globally, bullion also remained under pressure. According to Bloomberg, gold fell as much as 2% to below $4,175 per ounce after dropping 1.6% in the previous session. Silver declined 2.3%, with platinum and palladium also trading lower.
Why gold prices matter for gold loan companies
The fall is particularly significant because gold financiers like Manappuram and Muthoot have benefited heavily from rising bullion prices over the past several quarters. Higher gold prices increase the value of pledged jewellery, allowing borrowers to access larger loan amounts, which directly drives loan book growth.
With gold prices correcting sharply, markets are questioning whether that growth momentum can hold.
Muthoot Finance has now corrected nearly 31% from its 52-week high of ₹4,149, touched in January 2026. Over the past month alone, the stock is down around 17.45%.
Investor sentiment and ETF flows
Another signal contributing to cautious investor sentiment came from fund flow data. According to AMFI, gold-backed exchange-traded funds recorded their first net outflow since April 2025, indicating some cooling in investor appetite for gold exposure amid the recent decline in bullion prices.
How much cushion do gold lenders have?
Despite the sharp market reaction, companies have maintained that moderate corrections in gold prices do not materially affect asset quality. Manappuram Finance's loan-to-value (LTV) ratio currently stands at around 57%, which means the pledged gold is worth nearly twice the outstanding loan. That leaves a sizeable collateral cushion even after the recent price correction.
Still, the market's reaction on June 10 makes one thing clear: movements in gold prices continue to play a central role in shaping sentiment around gold financing stocks, and investors are watching the next move in bullion very closely.