Diwali 2023: Why gold outshined stock market returns in last one year?
₹50,580 per 10 gm to ₹59,654 per 10 gm levels on Multi Commodity Exchange (MCX), logging to the tune of 18 per cent. Since Diwali 2022, silver price has ascended from ₹57,748 per kg to ₹70,025 per kg levels, registering more than 21 per cent rise in this time duration. However, comparing this return against key benchmark indices of Indian stock market, both precious metals have generated alpha return against Indian stock market.
Is Indian stock market open on Diwali 2023? In last one year, Nifty 50 index has risen around 9.50 per cent (from 17,730 to 19,425 levels) whereas BSE Sensex has shot up near 9.4 per cent in this time. But, Nifty Bank index gave lesser return than other two key indices. Since Diwali 2022, Nifty Bank has risen from 41,340 to 43,820 levels, logging around 6 per cent rise in this time.
Diwali 2023: Gold to glitter, base metals may struggle, says Jigar Trivedi According to market experts, US banking crisis in early 2023, global economic slowdown geo-political tension are some of the major reasons taht enabled gold and silver to beat stock market returns by a huge margin. They went on to add that forthcoming US presidential elections are expected to prompt US Federal Reserve to implement expansive fiscal policies, which may lead to higher demand for gold and silver metals. They said that gold and silver prices are expected to continue is bull trend and it may go up to ₹68,000 per 10 gm and ₹95,000 per kg levels on MCX respectively.
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