RBI Rate Cut and Gold Loan Norms Shake Muthoot Finance, IIFL Finance Stocks

Shares of

, , and fell sharply, dropping up to 12%, following the Reserve Bank of India’s (RBI) announcement to tighten gold loan regulations. The news caused investor concern, leading to a sell-off in these stocks. Additionally, the RBI reduced the repo rate by 25 basis points to 6% and lowered the FY26 GDP growth forecast to 6.5%. Despite the rate cut, banking stocks broadly declined, with PSU banks seeing a significant drop of over 2%. The tightening of gold loan norms further added pressure on the financial sector. Disclaimer: This post is for informational purposes only and does not constitute investment advice.