Indian gold loan providers rise as gold climbs; JPMorgan initiates at "overweight"

Manappuram Finance

21/08/2026 06:49

** Shares of Indian gold loan providers rise; Manappuram Finance MNFL.NS up 2.6%, Muthoot Finance MUTT.NS climbs 2.7%, IIFL Finance IIFL.NS jumps 6.8%
** IIFL hit record high of 687.10 rupees in the session
** Gold rose 3.6% in the week, on track for third straight weekly gain on U.S. treasury bond buyback and weaker dollar
** JPMorgan initiates gold lenders at "overweight", says next phase of gold loan growth likely to be structural rather than cyclical
** Borrower preference moving from unsecured and small business loans towards gold due to higher financial literacy and lower risk appetite, says brokerage
** High barriers to entry likely to protect incumbents' profitability despite rising competition, brokerage adds
** Nifty Financial Services index .NIFTYFIN, which MUTT is a part of, up 0.3%
** YTD, MUTT down 20%; MNFL up 16%; IIFL up ~12%
     

 (Reporting by Abhirami G in Bengaluru)
 ((abhirami.g@thomsonreuters.com))