Muthoot Finance Ltd. and Manappuram Finance Ltd. Surge Amid Gold Price Hike
Muthoot Finance Ltd. and Manappuram Finance Ltd. Benefit from Gold Surge
Shares of Muthoot Finance Ltd. and Manappuram Finance Ltd. gained sharply as international gold prices surged to a record high of $2570.3 per ounce. This remarkable increase reflects a boost in loan growth for gold loan companies, and an improved loan-to-value (LTV) ratio, crucial for assessing loan risks.
Investment Climate Changes
- Manappuram Finance Ltd. advanced up to 5.3% intraday, reaching Rs 216.5.
- Muthoot Finance Ltd. climbed 4.6% intraday, hitting an all-time high of Rs 2,078.75.
- Gold prices have increased by 25% this year due to central bank purchasing and rising demand.
Market Insights and Economic Impact
The rising gold prices enhance revenue prospects for gold jewellery sellers, with estimates projecting a surge of up to 25%. Meanwhile, gold futures on the Multi Commodity Exchange climbed to Rs 73,215 per piece. As investor interest continues to rise, the gold sector is poised for further growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.