Muthoot Finance and Manappuram shares rise as gold prices jump
Gold financier stocks climbed on Monday after bullion prices rose over 2 per cent following a weaker US dollar.
Shares of gold financier companies, including Muthoot Finance, Manappuram, and IIFL Finance, rose by as much as 8 per cent on November 4, according to Moneycontrol. The increase followed a rise of over 2 per cent in gold prices, which was supported by a weaker US dollar after Democrats won control of both the Senate and House in US midterm elections.
Bullion prices advanced as much as 2.5 per cent to nearly $4,030 an ounce, marking the largest intraday increase since August. At 2:30 pm on November 4, Muthoot Finance shares were trading 8 per cent higher at Rs 2,728, while Manappuram and IIFL Finance shares were up 4.5 per cent and 6.5 per cent, respectively.
Kyle Rodda, a senior financial market analyst at Capital.com, said gold benefited from falling yields and a weaker dollar. Christopher Wong, a strategist at Oversea-Chinese Banking Corp, noted that gold is gaining momentum as markets evaluate if the Democratic results could limit the fiscal agenda of Trump.
Chris Weston, head of research at Pepperstone, said the demand for protection against a potentially unpredictable Trump administration provides a backdrop for gold buyers. Meanwhile, the World Gold Council stated on Tuesday that Indian gold demand is projected to reach its lowest level in six years in 2026 due to high prices.
On the geopolitical front, a senior Iranian official told Reuters on Tuesday that Iran and the United States remain far from an agreement to end their war. US President Trump has declined to rule out resuming combat operations following the elections.