Manappuram Finance Ltd: Could be heading upwards

Manappuram Finance Ltd (Rs.14.65) could be heading up basically due to four factors: 

(i) Hedge funds’ combined holdings in gold futures rose the most this month as continued U.S. monetary stimulus spurred investors to sell short contracts and sent prices toward the first quarterly advance in a year.

(ii) The festive demand for gold could keep the prices up in the domestic market. This might at least continue till "Deepawali". 

(iii) The RBI governor, Raghuram Rajan had talked of maintaining a neutral rate policy on the interest rate trajectory. This means, he has come down from the earlier more hawkish stand. Now with the appreciation of INR, India be a little less worried about imported inflation. 

(iv) Gold prices are forecast to rise next week, according to a survey. As many as 11 out of 19 analysts polled by the Kitco News Gold Survey expect prices to go up next week. CLICK HERE.