Why Manappuram Finance shares have fallen 5% despite high gold prices?
Over 96 lakh shares worth ₹339.57 crore traded on the NSE alone by the afternoon
Manappuram Finance shares experienced a 5.17 percent decline on Thursday, trading at ₹346.50 on the NSE, with an intraday low of ₹346. Despite gold prices remaining high, the stock opened at ₹365.40 and peaked at ₹369.90 before selling pressure took over. The heavy trading volume, exceeding 96 lakh shares worth ₹339.57 crore, indicated profit-taking rather than fundamental issues.
The buy-sell ratio revealed bearish sentiment, with 67.52 percent of the queued quantity on the sell side compared to 32.48 percent on the buy side. Manappuram’s stock has seen a significant rise of nearly 30 percent over the past year and over 148 percent in three years, making it susceptible to profit-taking at elevated levels.
The broader gold lending sector also faced pressure. Ravi Singh, Master Capital Services’ chief research officer, attributed the weakness to profit-taking following the strong rally in gold prices and gold-linked stocks. He considered the current correction healthy and suggested further dips could present accumulation opportunities for medium- to long-term investors.
Manappuram’s market capitalization stood at ₹32,562 crore at the time of reporting, with its 52-week high of ₹381.55 reached on July 30, 2026.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
