Shares of Manappuram Finance staged a sharp recovery on Sunday after falling nearly 6% earlier in the session, tracking a strong rebound in domestic gold prices during the special Union Budget 2026 trading window. As of 10:41 AM, the shares were trading 0.72% lower at Rs 282.60.
Gold futures on the Multi Commodity Exchange (MCX) witnessed extreme volatility, rebounding close to 6% from intraday lows to trade near the ₹1.45 lakh level. The recovery followed a steep sell-off that had pushed prices to lower circuit levels earlier in the day.
The precious metal had plunged as much as 9% during the session, driven by aggressive profit-booking after an extended record-breaking rally. However, panic selling subsided once prices approached key technical support levels, triggering fresh bargain buying and short-covering by traders. This recovery in gold prices helped gold-loan focused stocks, including Manappuram Finance, claw back most of their losses.
On the global front, gold prices initially came under pressure from a stronger US dollar and rising bond yields. Sentiment was also impacted after US President Donald Trump named Kevin Warsh, who is considered hawkish on interest rates, as his choice for the next Federal Reserve Chair. Expectations of tighter monetary policy weighed on bullion prices earlier in the session.
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