Manappuram, Muthoot Finance, other gold financier stocks fall 2% intraday as gold prices decline after sharp rally

Gold financier stocks decline

• Gold financier stocks dropped over 2% intraday as gold prices corrected from day's highs.
• Manappuram, Muthoot, and IIFL Finance shares dropped after recent record highs
• Gold prices fell nearly 2 percent after nearing lifetime high on MCX

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Gold financier stocks declined in trade on December 29 as gold prices sharply corrected during the day from the day's highs.

Manappuram Finance shares fell 2.4 percent from its day’s high. IIFL Finance and Muthoot Finance shares also fell more than 2 percent from their respective highs, tracking the sharp decline in gold prices.

These stocks had earlier seen a sharp surge, tracking the bull run in the yellow metal. The rising gold prices bodes well for gold financiers, as it increases the value of the collateral while issuing loans. This reduces the risk of default, as the collateral becomes more valuable relative to the loan amount issued against it.

Gold prices:

After nearing a lifetime high level of Rs 1,40,465 per 10 grams, gold futures with February expiry on the Multi Commodity Exchange of India (MCX) fell nearly 2 percent to Rs 1,37,646 per 10 grams.

Gold futures with April, June and August expiries also slipped into the red.

"A combination of profit-taking and seemingly productive talks between Trump and Zelensky regarding a potential peace deal have put gold, silver on the back foot," Reuters quoted KCM Trade Chief Market Analyst Tim Waterer as saying.

How have the gold financier stocks been performing?

These gold financier stocks recently hit record highs, accompanying gold’s bull run. Manappuram Finance shares hit a fresh 52-week high of Rs 318.90 apiece on December 26, jumping 89 percent in 10 months. The stock is up over 62 percent in 2025 so far, after rising 179 percent in the past three years.

Muthoot Finance shares hit a fresh 52-week high of Rs 3,890 apiece on December 24, rallying 98 percent in eight months. The stock is currently up around 70 percent in 2025 so far.

IIFL Finance shares hit a new 52-week high of Rs 607.55 apiece on December 26, jumping 117 percent in nine months. The stock is up around 42 percent in 2025 so far.

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