With 13% return in 2024 so far, gold bulls leave Sensex far behind

With 13% return in 2024 so far, gold bulls leave Sensex far behind

In the race for returns, gold appears to have left the S&P BSE Sensex by a wide margin in 2024. The yellow metal has generated around 13% return on a year-over-year basis (YTD), compared to a 4% gain by India . heartbeat index.

In the 30-stock index, 10 have given higher returns than gold in 2024. Tata Motors tops the chart with 29% returns as on April 9, 2024. It is followed by Sun Pharmaceuticals and Maruti Suzuki India (MSIL ) which gave 27.21. % and 25.16%, respectively during the same period.

Others with higher returns are Mahindra & Mahindra (M&M, 21.13%), State Bank of India (SBI, 19%), Tata Steel (19%), Power Grid Corporation (18.44%), NTPC ( 17%), Bharti Airtel (16%) and Reliance Industries (RIL, 13.24%).

Private lender ICICI Bank gave a return of over 11 per cent. Six actions to know. Larsen & Toubro (L&T), HCL Technologies, Tata Consultancy Services (TCS), Bajaj Finserv, Wipro and Titan Company generated positive returns ranging between 7.30% and 0.10%.

Meanwhile, 13 stocks generated negative returns ranging from 0.65% to 16.01%. The worst performers are Asian Paints, Hindustan Unilever (HUL), HDFC Bank and ITC.

MCX gold rose by over Rs 8,100 per 10 grams on a year-to-date basis, touching the Rs 70,000 mark for the first time. Sensex hit a new lifetime high of 75,124 .28, earning 2,884 points during the same period. Gold, considered a safe haven among different asset classes, has benefited from geopolitical tensions – first the war between Russia and Ukraine and now the ongoing Israeli-Palestinian crisis – and hopes early rate cuts by the US Federal Reserve.

Rahul Ghose, CEO of Hedged.in remains optimistic about gold’s outlook for FY2025, although he does not seem as optimistic about the outlook for domestic stocks. It rules out any significant movement in the stock markets, barring a few sectors like automobiles, capital goods and some PSUs, despite a meteoric rise in PSU stocks during the financial year ended March 31, 2024.

Ghose expects a slight correction over the next 45 days before the election results, arguing that historically 5-week series are volatile in nature, and May is a 5-week series in the middle of election voting.

Anuj Gupta, head of commodities and currencies at HDFC Securities, also remains bullish on gold and expects it to test levels of Rs 73,500.

(Contributed by Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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