Shares of major non-banking finance companies (NBFCs) including Muthoot Finance, IIFL Finance, Manappuram Finance, and Cholamandalam Investment and Finance Company saw a significant drop on April 9. The decline came after the Reserve Bank of India (RBI) announced plans to roll out comprehensive guidelines on loans against gold.<\/p>\n
Following the RBI Governor\u2019s update, investor sentiment turned cautious, especially toward companies with a heavy focus on gold loan portfolios.<\/p>\n
\nShares of Muthoot Finance fell nearly 8%, trading at \u20b92,105.15 as of 10:55 AM. IIFL Finance dropped around 5%, while Manappuram Finance slipped 1.5%. Cholamandalam Investment and Finance also saw a 4% decline, reflecting broader pressure on the sector.<\/p>\n<\/blockquote>\n
What Triggered the Fall?<\/strong><\/h3>\n
In his post-monetary policy address, Sanjay Malhotra from the RBI confirmed that comprehensive guidelines will be released soon for loans against gold, including rules for non-fund-based entities. Moreover, the co-lending framework will now be extended to all regulated entities, creating a new compliance structure for NBFCs and related institutions.<\/p>\n
\nThis regulatory shift has sparked short-term concerns among investors about potential impacts on profitability and lending flexibility for these companies.<\/p>\n<\/blockquote>\n
RBI\u2019s Policy Stance and Market Reaction<\/strong><\/h3>\n
The RBI also cut its key repo rate for the second consecutive time, signaling its intent to support economic recovery amid growing global uncertainties, including pressure from US tariffs.<\/p>\n
While the rate cut aims to inject more liquidity and support credit growth, the sector-specific regulations\u2014especially on gold loans\u2014have temporarily spooked the markets, pulling NBFC stock prices down.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares of major non-banking finance companies (NBFCs) including Muthoot Finance, IIFL Finance, Manappuram Finance, and Cholamandalam Investment and Finance Company saw a significant drop on April 9. The decline came after the Reserve Bank of India (RBI) announced plans to roll out comprehensive guidelines on loans against gold. Gold Loan Stocks Under Pressure Following the […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1365],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-6659","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/6659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=6659"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/6659\/revisions"}],"predecessor-version":[{"id":6665,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/6659\/revisions\/6665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/6664"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=6659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=6659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=6659"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=6659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}