Muthoot Fin, Manappuram rise up to 4%; here's why

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Key points

• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• While those of Manappuram Finance and IIFL Finance gained more than 3% each, muthoot Finance shares jumped more than 4% to trade at Rs 2, 985 apiece.
• Muthoot Finance, Manappuram, other gold financier stocks jump up to 4% as gold rates rise above Rs 1.58 lakh/10 grams.
• Spot gold jumped to $4, 526 per ounce, the highest level since June 2.
• Manappuram Finance, Muthoot Finance and IIFL Finance provide loans with gold as collateral.

Shares of gold loan firms Muthoot Finance, Manappuram Finance and IIFL Finance rose as much as 4% as gold costs surged after the US Treasury's decision to rise longer-dated bond buybacks. Rising gold rates can boost the value of collateral pledged against gold loans.

After a surprise liquidity backing announcement by the US Treasury, shares of gold loan firms, including Muthoot Finance, Manappuram Finance and IIFL Finance, jumped up to 4% on Thursday as the yellow metal's costs surged. While those of Manappuram Finance and IIFL Finance gained more than 3% each, muthoot Finance shares jumped more than 4% to trade at Rs 2, 985 apiece. This comes as gold futures for October delivery on the MCX rose Rs 447 per 10 grams to Rs 1, 58, 443 per 10 grams on Thursday morning. While February contracts traded above Rs 1.62 lakh per 10 grams, december contracts jumped above Rs 1.6 lakh per 10 grams.

In the international market, gold rates hovered near their highest level in more than two months on Thursday after a surprise liquidity backing announcement by the US Treasury pushed yields and the dollar lower. Spot gold jumped to $4, 526 per ounce, the highest level since June 2. This came as US Treasury yields fell, with the rose demand after an announcement that the Treasury Department would double the size of liquidity backing buyback operations for longer-dated notes and bonds. The US dollar meanwhile remained muted, making the American greenback-priced metals cheaper for buyers ⁠holding other ‌currencies. Gold rebounds above Rs 1.58 lakh/10 grams as US bond yields decline. What lies ahead? Live Events.

Why are gold financier stocks rising today?

Manappuram Finance, Muthoot Finance and IIFL Finance provide loans with gold as collateral. Rising gold rates will rise the value of the pledged collateral. Since gold loans are sanctioned based on the per-gram valuation of gold, higher rates will require borrowers to pledge less jewellery to access the same loan amount. It in turn can produce such loans more attractive. Muthoot Finance shares have gained over 3% in a week but declined more than 22% in 2026 so far against the backdrop of a sharp correction in gold costs. In the longer term, the shares of the firm have delivered over 10% returns in one year, 139% in three years and 103% in five years. Manappuram Finance shares are meanwhile up 11% in 2026 so far, delivering 136% returns over three years. IIFL Finance shares gained 15% in three years. What lies ahead?

Higher crude rates and continued uncertainty after the US-Iran MOU concluded without fresh discussions kept sentiment cautious for gold in the previous session, remarked Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities. While markets will additionally track the FOMC session minutes, US jobs data and crude movements for further direction, he observed that the Strait of Hormuz remains a key geopolitical trigger. "Gold is likely to remain volatile as geopolitical developments continue to drive safe-haven demand, " according to the analyst. The recent pullback in gold rates may have created an opportunity for investors to gradually accumulate the yellow metal, according to Jefferies' Global Head of Equity Strategy Christopher Wood and billionaire hedge fund manager John Paulson. Both believe the precious metal could be at the beginning of a long-term bull run. Why is market rising today? Sensex rallies 500 points, Nifty tops 24, 200. 5 key factors behind market rebound (With inputs from agencies) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.).

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For now, muthoot Fin, Manappuram rise up to 4%; here' s why remains the part of the story worth watching, and further updates are likely as more details are confirmed.