Gold financiers trade mixed as RBI lifts ban on gold financing biz of IIFL Finance; Muthoot Finance and Manappuram trade lower

Shares of the NBFC company IIFL Finance zoomed in early trade on Friday (September 20) after the apex banker lifted restrictions on the company's gold loan business with immediate effect.

At the last count, shares of the multibagger stock traded with gains of over 10 per cent at Rs 545.7, while at day's high it scaled to Rs 560.6.

The stock of IIFL Finance in the last 3 years has delivered return to the tune of 106 per cent to its investors.

Post the decision global brokerage Morgan Stanley noted that there is no evidence yet to suggest that Muthoot and Manappuram benefited fundamentally from the restrictions on IIFL Finance.

Muthoot stock has benefited significantly also amid gold price rise and hence could be at higher risk of giving up gains, it added. 

Muthoot Finance at around the time of writing this copy was down over 4 per cent at Rs  1,958.2, while year-to-date the stock has gained over 33 per cent.

Muthoot is more sensitive to changes in gold loan business prospects and gold prices than Manappuram, noted the global brokerage.

At the time of writing this copy, Manappuram Finance also traded with a cut of over 1 per cent at Rs 204.5 per share on the NSE.