Gold and silver outshine equities as Samvat 2081 draws to a close

Gold and silver soared over 60 per cent in Samvat 2081, outpacing stocks as Nifty and Sensex delivered modest single-digit returns amid global volatility

Gold and silver extended their red-hot streak during Samvat 2081, even as equity-market returns moderated. This was in contrast with the previous Samvat, when almost all asset classes delivered stellar returns. 

Gold and silver jumped more than 60 per cent and 68 per cent, respectively, after rising over 30 per cent in Samvat 2080. The yellow metal sprinted from ₹79,238 per 10 gram to ₹1.27 lakh during Samvat 2081, while silver jumped from ₹96,670 to ₹1.63 lakh per kg, outrunning every major asset class.

 

Meanwhile, the benchmark indices took a breather, with the Nifty and Sensex posting single-digit gains of 6.8 per cent and 5.8 per cent, respectively.

 

 

“The year gone by tested investor patience, with India lagging global peers despite strong domestic fundamentals. However, the stage now appears set for an earnings-led recovery,” said Amisha Vora, chairperson and managing director, PL Capital. 

Vora said growth momentum remained intact, supported by structural reforms, the rollout of goods and services tax (GST) 2.0, income-tax relief, and an accommodative policy stance easing liquidity conditions. 

The broader markets, too, gave up last year’s euphoria: Nifty Midcap 100 eked out 5.8 per cent, while the smallcap 100 slipped 2.1 per cent after back-to-back 30 per cent-plus rallies in 2079 and 2080. 

“For mid and smallcap stocks, it was a year of mean reversion after two strong years. Valuations had moved far ahead of fundamentals, and investor risk appetite plummeted, making this a year of consolidation and reality checks,” said Deepak Jasani, former head of retail research at HDFC Securities. 

Some experts believe those who trod with caution and followed proper asset allocation managed to earn decent returns.

While investing in gold and silver has become the most sought-after trade, analysts warn returns could moderate after two years of stellar returns. 

“Since gold and silver are on everyone’s mind, a note of caution for new investors: These metals can be volatile. Sharp upswings are often followed by quick corrections. Instead of a large, one-time investment, this Diwali, you can consider using our Stock SIP feature to invest in gold or silver ETFs,” wrote Harsh Jain, cofounder and COO of Groww, in a social media post. 

Equity valuations, though off their peaks, are yet to turn compelling, said experts. The Nifty trades at 20.8× FY26 earnings, more than 10 per cent above its 10-year average, with mid and smallcaps commanding even richer multiples. 

“If you are good at picking the right stocks and have patience, you can still make good money. Those who bought between February and April this year have done well. But it was a year that reminded new investors that market corrections can be long and test one’s patience,” said Ambareesh Baliga, independent equity analyst.