Shares of Muthoot Finance fell 9.61% to Rs 3,676.00 in Friday’s session on February 13, hitting the lower circuit even after the company reported a sharp surge in third-quarter profit.
The gold loan financier posted a near doubling of profit to Rs 26.56 billion for the quarter ended December 31, compared with Rs 13.63 billion a year earlier, driven by strong loan demand amid record-high gold prices. Higher gold prices typically benefit gold financiers as the value of pledged gold rises, allowing borrowers to secure larger loans against the same quantity of gold.
However, despite the robust earnings performance, the stock witnessed heavy selling pressure. One of the key reasons appears to be a slight correction in gold prices after hitting record highs in the October–December quarter. A pullback in gold can impact sentiment around gold loan financiers, even if underlying demand remains firm.
Intraday data shows multiple large deals in the morning session between 9:19 AM and 9:20 AM on February 13 across NSE and BSE. Several bulk-sized trades were executed in the Rs 3,660–3,708 price range, with deal values exceeding Rs 5 crore each. Individual transactions ranged from approximately Rs 5.3 crore to as high as Rs 17.93 crore, indicating heightened institutional-level activity and heavy supply in early trade.
Market participants attributed the sharp fall largely to profit booking following the stock’s recent rally, combined with gold price volatility and significant intraday selling pressure. The concentration of large deals early in the session further intensified the downward move, pushing the stock to its lower circuit limit despite strong quarterly earnings.
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