How gold price rally helped Manappuram shares hit 52-week high — explained

Stock market today: Manappuram Finance share price today hit a new 52-week high of ₹133.40 per share on NSE in early morning deals. Manappuram Finance shares today opened with an upside gap and logged over 4 per cent intraday gain within few minutes of stock market's opening bell on Tuesday. 

According to stock market experts, Manappuram Finance shares are rising these days due to rising gold prices. They said that in January to March 2023 quarter, gold price has risen to the tune of 8 per cent, which is expected to fuel business volume of the financial company leading to better numbers in current results season. They said that Manappuram share price is in uptrend and it is on cusp of giving breakout at ₹137 apiece levels. They went on to add that after giving breakout at ₹137, Manappuram shares may go up to ₹155 per share levels in one to three months.

On how gold price rally has pushed Manappuram Finance share price in recent times, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Gold price has been in uptrend after ushering in new year 2023 and market is expecting that Manappuram Finance will get benefit of gold price rally as it has exposure in gold loan business. Due to continuous rise in gold price in recently ended quarter, Manappuram Finance Ltd is expected to report better results due to rise in its gold loan business volume as higher yellow metal prices would enable gold loan applicant to mint more money on their valuables."

How glittering gold pushed Manappuram shares?

Profitmart Securities expert went on to add that gold rates today is in uptrend and it has risen around 8 per cent in January to March 2023 quarter whereas in FY23, yellow metal price has surged around 15 per cent. This is expected to strengthen the gold loan order book of the company leading to better quarterly numbers of the financial company.

On his suggestion to positional stock market investors in regard to Manappuram Finance shares, Avinash Gorakshkar said, "Gold price is expected to continue rising northward in near term and hence one who has short term time horizon can add this stock in one's portfolio whereas Manappuram Finance shareholders are advised to continue holding the scrip for short term."

Manappuram share price outlook

Advising Manappuram Finance shareholders to hold the stock further, Sumeet Bagadia, Executive Director at Choice Broking said, "Manappuram Finance shares may become more bullish once it closes above ₹130 apiece levels. Those who have this financial stock in their portfolio are advised to hold the stock for more upside keeping trailing stop loss at ₹120 levels."

On suggestion to fresh investors, Ravi Singhal, CEO at GCL Broking said, "Manappuram Finance share is on cusp of giving fresh breakout at ₹137 levels. Once, the stock closes above this level, one can initiate fresh buying in the scrip for one to three month target of ₹155 levels. However, one must maintain stop loss at ₹129 while taking fresh position in the scrip."

Ravi Singhal of GCL Broking went on to add that Manappuram shareholders can upgrade its trailing stop loss from ₹120 to ₹129 once the scrip gives breakout at ₹137 apiece levels on closing basis.

Gold price rally in FY23

Gold prices recorded double-digit growth in fiscal year FY23, proving to become one of the best alternatives to give strong returns amidst extreme volatility in the equities. Where Nifty and Sensex have broadly given flat to negative returns in FY23, gold has risen by a whopping 15 per cent owing to macroeconomic risks. In January to March 2023 quarter, gold price surged to the tune of 8 per cent.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.