Gold vs stock market: Why Nifty 50 outshined yellow metal in 2023 — explained with 10 reasons
Gold vs stock market: As we welcome the dawn of 2024, it is important to scrutinize how different risky assets delivered in 2023. After end of last trade session of 2023 on Friday, Nifty 50 index has given 19.42% return in YTD, BSE Sensex surged 18.10% in 2023 whereas Nifty Bank index gained around 11.80 per cent in 2023. In year-to-date (YTD) time, small-cap index skyrocketed 46.30% while mid-cap index shot up 44.70 per cent in this time.
Comparing these returns with gold, only Nifty Bank index failed to outshine the precious yellow metal as gold price on MCX has delivered around 13.55% YTD return in 2023. Also Read: US dollar to keep falling against G10 currencies According to stock market experts, Indian stock market outshined gold in 2023 as investors' congidence went up due to improving economic conditions in India in post-Covid scenario. They said that FIIs pumped moeny even in the month of December,, which was quite exceptional.
They said that investors prefered to equities over traditional safe haven asset because they anticipated higher return in a recovering economy. On why gold failed against Indian stock market in 2023, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360 said, "The Indian stock market indices, particularly the Nifty, outpaced gold in 2023 due to a confluence of pivotal triggers. Firstly, India's sturdy GDP amid global challenges and effective inflation control measures fortified investor confidence, enhancing the market's appeal.
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