Gold-linked stocks: Manappuram Fin hits all time high, Muthoot Fin gains

Manappuram Finance stock hit all time high and Muthoot Finance stock gained after gold prices crossed ₹1,00,000

As tensions between Israel and Iran spiked, investors were seen taking shelter under safe-havens. In India, MCX gold futures, August 5, 2025 contract, rose by ₹2,011, touching a day's high at ₹1,00,403 per 10 grams. While most gold financer stocks saw buying, selling was seen in major jewellery-related stocks.

 

"Gold prices surged sharply, crossing ₹1,00,000 on MCX amid geopolitical issues escalating further with Israel attacking Iran's nuclear sites. In India, prices reacted with ₹1,500-1,900 gains as Iran retaliation threats loomed which could create war situations between the two. In the international market, Comex surged passed $3,425, gaining $50 but Indian gold price rose 2 per cent due to rupee weakness, which fell by 6 paise to ₹86.1," said Jateen Trivedi, VP Research analyst - commodity and currency, LKP Securities.  Catch Latest Stock Market Updates Today LIVE

 

Gold financers' stocks glitter

At 1 PM, Manappuram Finance shares were up 1.83 per cent at ₹275.45 per share. The stock hit an all time high during the session at ₹278.25 per share. Muthoot Finance shares also were up 1.36 per cent at ₹2,586.8 per share. The stock hit intraday high at ₹2,594 per share. Overall, gold financers' stocks gained up to 3 per cent.

How do gold financers benefit when gold prices rise?

When gold prices rise, the value of the collateral increases, allowing borrowers to access higher loan amounts and reducing the lender’s credit risk. This typically boosts demand for gold loans and improves recovery in case of default, supporting profitability.

Who are gold financers?

Gold financers are financial institutions or non-banking finance companies (NBFCs) that provide loans against gold jewellery as collateral. These loans are typically short-term, easy to access, and popular among individuals and small businesses needing quick liquidity.

Jewellery stocks dull 

At 1 PM, PC Jewellers shares were down 2.46 per cent, Titan shares were down 0.59 per cent, Senco Gold 0.87 per cent, Kalyan Jewellers 0.96 per cent. Overall, jewellery stocks slipped up to 3 per cent.

How does a rise in gold prices impact jewellery stocks?

When gold prices rise sharply, consumer demand for jewellery may soften, as buyers delay or reduce purchases. This can hurt sales volumes for jewellery companies.