Manappuram General Finance & Leasing (down 7.48%), Muthoot Capital Services (down 3.11%) and Mahindra & Mahindra Finance Services (down 0.78%), slipped. These companies provide loans against gold as collateral.
The BSE Sensex was down 23.55 points or 0.15% at 15,857.59.
At the Multi Commodity Exchange (MCX), February gold futures contract declined by 1.06% to Rs. 27,885 per 10 grams today (15 December 2011) after the precious metal dipped below the $1,600 an ounce-level in overseas markets as a stronger dollar eroded its appeal as an alternative asset.
In International market, spot gold dropped 0.5% to $1,566.55 an ounce in Singapore today (15 December 2011). The price lost 8% in the preceding three days, and is set for the worst weekly fall since the period to 23 September 2011. The February-delivery contract dropped as much as 1.2% to $1,567.60 on the Comex.
International spot gold has dropped 18% from the all-time high of $1,921.15 in September 2011, and a 20% decline from that peak -- regarded by some investors as signaling a bear market -- would be a price of $1,536.92.
