Muthoot Finance, Manappuram Finance Share Price Fall Amid Gold Price Correction

Market Performance Today

Gold loan financiers faced a significant setback on Friday, as shares of Muthoot Finance, Manappuram Finance, and other players slipped sharply. The decline in precious metal prices triggered profit booking after a recent surge, affecting investor sentiment in the stock market today.

• Manappuram Finance: Dropped over 9% to an intraday low of Rs 270 per share on the NSE.
• Muthoot Finance: Fell more than 7% to Rs 3,924 on the NSE.
• IIFL Finance: Declined around 2% to Rs 535.30.

The sharp movement reflects the sensitivity of gold financiers’ stocks to fluctuations in gold and silver prices.

Gold Price Correction and Its Impact

The fall in gold-related shares coincided with a sharp correction in domestic gold prices:

• Gold February contract (MCX): Declined Rs 2,162, or 1.28%, to Rs 1,67,241 per 10 grams.
• Previous session peak: Gold had surged nearly 9% to Rs 1,80,779 per 10 grams before easing.

Similarly, silver prices also experienced a downward trend as global and domestic dynamics influenced trading.

Factors contributing to this correction included:

• Profit booking after record-high gold prices.
• Rebound in the US dollar, putting pressure on domestic metals.
• Elevated prices reducing physical demand and gold imports.

The combination of these elements led to a synchronized decline in gold loan company shares, highlighting the close link between commodity movements and the stock performance of financiers.

Company Financial Snapshot

Manappuram Finance

• Consolidated Net Profit (Q3 Dec 2025): Rs 241 crore, down 14.5% year-on-year.
• Segment performance: Microfinance segment showed slowdown impacting overall profitability.

Muthoot Finance

• Share Price (NSE): Rs 3,924, down over 7%.

IIFL Finance

• Share Price (NSE): Rs 535.30, down 2%.

These movements demonstrate that even strong gold loan growth may not fully shield companies from stock volatility when gold prices correct sharply.

Summary

Friday’s session marked a notable correction in gold loan financier stocks, driven by a drop in precious metal prices and profit-taking in the market. Manappuram Finance and Muthoot Finance led the decline, reflecting the sensitive relationship between gold prices and gold lending businesses.

Investors in the stock market today witnessed that high commodity prices can trigger swift movements in stocks, and gold financiers remain closely tied to global and domestic metal trends.

Source: Moneycontrol