Manappuram Finance shares surge nearly 7%, hit fresh 52-week high on surging gold prices

Shares of gold finance company Manappuram Finance rose as much as 6.66% to hit a fresh 52-week high of ₹314.45 on the National Stock Exchange (NSE) amid surge in gold prices in international and domestic markets. On the BSE, Manappuram Finance shares rose as much as 6.7% to hit 52-week high of ₹314.35.

Manappuram Finance shares were witnessing higher than usual trading activity as trading volume spiked by 6 times to 1.62 crore shares compared with an average trading volume of 27.94 lakh shares. On the BSE, as many as 6.27 lakh shares changed hands compared with an average of 3.37 lakh shares traded daily in the past two weeks.

Gold prices hit a record of ₹1,38,676 per 10 grams in futures trade on Wednesday, while the metal crossed $4,500 per ounce in the global market, amid expectations of further monetary easing by the Federal Reserve and rising geopolitical tensions.

Rallying for the third straight session, gold futures for February delivery increased by ₹791, or 0.57%, to hit a lifetime high of Rs 1,38,676 per 10 grams on the Multi Commodity Exchange (MCX).

In the international markets, Comex gold futures climbed for the fourth straight day, climbing by $49.4, or 1.10%, to touch a new record of $4,555.1 per ounce.

On the US macroeconomic data front, the economic growth remained solid in the third quarter, with GDP expanding at a faster pace than in the prior period, although labour market data pointed to continued but gradually moderating job creation.

Gold is now up around 70% this year and is on track for its strongest annual gain since 1979, supported by sustained central bank buying and steady inflows into gold-backed funds.

Meanwhile, surging gold prices augur well for gold loan companies as higher gold prices lead to rise in loan-to-value ratio for gold loan companies.

As of 12:23 pm, Manappuram Finance shares traded 6.21% higher at 312.80, outperforming the NIFTY Smallcap 100 index which was up 0.5%.