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Mannapuram Finance, Muthoot Finance gain up to 3% in trade; here's why


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  Spot gold gained 1.1 per cent to $2,662.98 per ounce, as of 01:41 PM ET (1841 GMT). US gold futures settled 1 per cent higher at $2,685.50

The article from Business Standard discusses the recent performance of Manappuram Finance and Muthoot Finance, two major gold loan companies in India. Both companies saw their stock prices rise by up to 3% in trading sessions due to a surge in gold prices, which reached a record high of Rs 64,000 per 10 grams. This increase in gold value typically boosts the business of gold loan providers as it enhances the loan-to-value ratio, allowing them to offer larger loans against the same amount of gold collateral. Additionally, the article mentions that the demand for gold loans has been rising due to economic conditions, further supporting the positive market sentiment towards these companies. The stocks of Manappuram Finance and Muthoot Finance have also been supported by their strong financial performances in recent quarters, with improved asset quality and profitability.

Read the Full Business Standard Article at:
[ https://www.business-standard.com/markets/news/mannapuram-finance-muthoot-finance-gain-up-to-3-in-trade-here-s-why-124121000371_1.html ]

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