Manappuram Finance shares recently hit a new 52-week high of ₹133.40 per share on the NSE, thanks to a surge in gold prices. The company's shares opened with an upside gap, logging over a 4% intraday gain within minutes of the stock market's opening bell. Market experts attribute the rise in Manappuram Finance shares to increasing gold prices, which have risen around 8% in the January to March 2023 quarter, fueling the business volume of the financial company and leading to better numbers in the current results season.

Avinash Gorakshkar, Head of Research at Profitmart Securities, explains that the gold price uptrend is expected to benefit Manappuram Finance due to its exposure to gold loan businesses. The continuous rise in gold prices in the recently ended quarter is expected to boost the company's gold loan business volume, enabling gold loan applicants to obtain more funds on their valuables.

Gold prices have surged around 15% in FY23, which is expected to strengthen the company's gold loan order book and lead to improved quarterly numbers. Gorakshkar suggests that short-term investors can add Manappuram Finance shares to their portfolios, while existing shareholders are advised to hold the stock for short-term gains.

Sumeet Bagadia, Executive Director at Choice Broking, advises Manappuram Finance shareholders to hold the stock for more upside potential, with a trailing stop loss at ₹120 levels. Ravi Singhal, CEO at GCL Broking, adds that the stock is on the cusp of a fresh breakout at ₹137 levels. Once the stock closes above this level, investors can initiate fresh buying for a one to three-month target of ₹155 levels, maintaining a stop loss at ₹129.

Gold prices have recorded double-digit growth in FY23, proving to be a strong alternative to equities amidst extreme market volatility. While the Nifty and Sensex have given flat to negative returns in FY23, gold has risen by a significant 15% due to macroeconomic risks. In the January to March 2023 quarter, gold prices surged by 8%.

Please note that the views and recommendations discussed in this article are those of individual analysts or broking companies, and not of Found Gold. We advise investors to consult with certified experts before making any investment decisions.