India's Muthoot Finance could underperform after RBI lifts curbs on IIFL Finance, says MS

IIFL Finance

20/09/2024 09:09

** Shares of gold loan financier Muthoot Finance  MUTT.NS 
down 2.5% in afternoon trade
        ** Shares of MUTT and Manappuram Finance  MNFL.NS ,
which have benefitted from higher gold prices over the last few
months, could be at a higher risk of giving up gains in the near
term, says Morgan Stanley
        ** MS comments come after India's cenbank lifted
restrictions on IIFL Finance's  IIFL.NS  gold loan business on
Thursday
  
        ** MUTT is more likely to underperform than MNFL after
the lifting of restrictions on IIFL Finance  IIFL.NS , brokerage
says; MNFL shares are flat
  
        ** MUTT had gained 52% since RBI imposed curbs on IIFL
in March; MNFL up 12% over the same period, while IIFL shed 14%
  
    ** With RBI lifting its curbs on IIFL on Thursday, the
company can resume sanctions, disbursements, assignment,
securitisation and sale of gold loans; Its shares are up 8.5%

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))