Manappuram, Muthoot Finance, IIFL Finance Shares Dip as Gold Prices Correct

Gold financier stocks came under pressure on December 29, tracking a sharp correction in gold prices after an earlier rally. Investors saw Manappuram Finance, Muthoot Finance, and IIFL Finance shares slip from their intraday highs, reflecting the close link between gold valuations and the performance of these lenders.

Market Performance

• Manappuram Finance: Fell 2.4% from the day’s high.
• Muthoot Finance: Declined over 2% from its intraday peak.
• IIFL Finance: Also dropped more than 2% from intraday highs.

This movement came as gold prices, which had been surging in recent weeks, pulled back. The correction highlighted the sensitivity of gold financiers to fluctuations in the precious metal market.

Gold Price Movements

Gold futures on the Multi-Commodity Exchange of India saw a significant correction:

• February expiry gold fell nearly 2% to Rs 1,37,646 per 10 grams from a peak of Rs 1,40,465.
• April, June, and August expiry contracts also moved into the red.

The pullback came after gold reached lifetime highs earlier, prompting profit-taking by investors.

Performance of Gold Financier Stocks

These lenders had previously enjoyed strong gains, riding the upward momentum in gold prices:

• Manappuram Finance: Reached a 52-week high of Rs 318.90 on December 26. The stock surged 89% in 10 months, and is up 62% in 2025.
• Muthoot Finance: Touched a 52-week high of Rs 3,890 on December 24, rallying 98% in eight months and up 70% in 2025.
• IIFL Finance: Hit a 52-week high of Rs 607.55 on December 26, rising 117% in nine months, and up 42% in 2025.

The strong performance earlier was supported by rising gold prices, which increase the value of collateral for loans and reduce default risks.

Company Insights

• Manappuram Finance: A leading non-banking financial company specializing in gold loans, it has consistently benefited from gold price trends.
• Muthoot Finance: One of India’s largest gold loan providers, with a wide national presence, its stock closely mirrors bullion movements.
• IIFL Finance: Diversified financial services company with a strong focus on retail lending and gold-backed loans.

These companies’ stocks often react sharply to gold market fluctuations, reflecting the intrinsic link between loan security and metal valuations.

Summary

December 29 saw a temporary cooling in gold-financier stocks as gold prices corrected from recent highs. While the day’s decline was modest, it underlines how gold loan companies remain closely tied to bullion performance. Manappuram, Muthoot Finance, and IIFL Finance shares had enjoyed significant gains in 2025, riding gold’s bull run, and the recent pullback ipart of the natural ebb and flow of the market.

Investors and observers continue to track both gold prices and gold financier stocks, as movements in the metal can directly influence loan portfolios and overall financial health of these companies.