A further 10% rally in gold could add nearly $400 billion to Indian household wealth and unlock another $20-25 billion in gold-backed loans, creating a powerful consumption trigger and opening investment opportunities across financiers, jewellers and commodity-market plays, according to Jefferies.
The brokerage has added Manappuram Finance to its India model portfolio as its preferred bet on the accelerating monetisation of household gold. It also sees Titan, Kalyan Jewellers, MCX, IIFL Finance and Muthoot Finance among the potential beneficiaries of a continued rise in bullion prices.
