Shares of Gold Financiers Manappuram Finance Ltd. and Muthoot Finance Ltd. gained as much as 8% and 14% respectively on Tuesday.
On an intraday basis, this was the biggest single-day gain for Manappuram Finance since September 2020, Muthoot’s shares rose the most since June 2020. Muthoot Finance has also gained for the fifth day in a row.
Both the gold financing companies may be reacting to the developments taking place at IIFL Finance.
Both Manappuram and Muthoot are trading on the back of strong volumes in today’s session. While 30 lakh shares of Muthoot have already been traded so far compared to its 20-day average of 89,225 shares at this hour, close to 2 crore Manappuram shares have traded so far compared to their 20-day average of 15.7 lakh shares at this hour.
“As far as other gold finance companies are concerned we think that both Muthoot Finance and Manappuram Finance – the numbers were not so encouraging. There are always grey areas when it comes to numbers and quality. So for the time being, we would avoid this space,” Hemang Jani, Market Expert, told CNBC-TV18.
After the early surge, both Manappuram and Muthoot Finance shares are off the day’s high. Muthoot Finance currently trades 5% higher, while Manappuram trades with gains of 4.6% at ₹192.45. While Manappuram has risen over 70% during the last 12 months, Muthoot shares have gained close to 50%.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
