IIFL Finance dropped 2.49%, while Muthoot Finance fell 1.94% and Manappuram Finance declined 1.65%.

Gold prices came under pressure after the US dollar strengthened and investors increased bets that the US Federal Reserve could raise interest rates later this year.

Gold futures on the MCX for August 2026 delivery have fallen by over Rs 7,000 per 10 grams over the past two sessions to Rs 1,41,205. In the international market, gold prices slipped below $4,000 an ounce for the first time since November 2025.

The fall in gold prices is seen as a negative for gold loan companies. These lenders provide loans against gold jewellery. When gold prices decline, the value of the pledged jewellery falls. As a result, borrowers may have to pledge more gold to get the same loan amount, which could affect loan demand.