Mumbai: Manappuram Finance plunged for a second day after the Indian lender that accepts gold as collateral said falling prices of the yellow metal may trigger an increase in defaults and reduce fourth-quarter earnings.
The shares dropped 11 per cent to Rs24 in Mumbai, extending Tuesday's 20 per cent plunge.
The stock is poised for it biggest two-day drop since May 2003. A decline in gold prices may lead to "under-recovery of revenue on certain gold loan portfolios," Manappuram said in a filing yesterday. Muthoot Finance fell 4.4 per cent to Rs183.