Muthoot Finance dropped 4.43%, while Manappuram Finance fell 2.15%.

The weakness in gold prices, which dipped toward the $4,000-an-ounce mark globally, typically pressures gold financiers as collateral values shrink, affecting lending margins.

The steep decline in gold prices is driven by profit-taking, a stronger U.S. dollar, easing geopolitical tensions, and optimism around U.S.-China trade talks. Despite the recent pullback, gold remains up about 55% so far this year.