Gold and silver have proved to be the most rewarding for investors in the just-concluded Samvat 2075. After three years, the two precious metals have out-performed equities with returns of over 21 per cent each. The performance of the equity market was yet again divergent, with the large-cap-focused Nifty index gaining 10 per cent and the mid-cap and small-cap indices dropping 6.4 per cent and 9.6 per cent, respectively.
For the equity investor, Samvat 2075 was a choppy ride. The benchmark indices gained as much as 16 per cent and climbed to all-time highs immediately after the re-election of the Narendra Modi government. However, sluggish economic and corporate earnings growth, rising instances of corporate defaults, and a turmoil in the financial sector took the wind out of its sails.
The markets came off by 10 per cent between June and September. The Centre’s decision to lower the corporate tax rates, however, boosted market sentiment, with most stocks bouncing back sharply from their September levels. Most market players are expecting modest returns in Samvat 2076. They say economic recovery could be a prolonged one. Gold, meanwhile, could continue to shine till the time there is turbulence in the equity world.