Can You Buy Gold in Samvat 2081? Gold vs Sensex: Your Investment Guide for Diwali Muhurat Trading

As the festive season kicks off and Dhanteras has just passed, investors in India are keenly preparing for the Diwali Muhurat trading session, a time-honored tradition marking the start of Samvat 2081

Can You Buy Gold in Samvat 2081? Gold vs Sensex: Your Investment Guide for Diwali Muhurat Trading

As the festive season begins and Dhanteras has just passed, Indian investors are eagerly gearing up for the Diwali Muhurat trading session. It is a traditional beginning of Samvat 2081. This special trading window not only represents a fresh start but also symbolizes an auspicious time for many to invest wisely and secure their financial future for the next year. Investors are left with little else but making a hard choice at historic prices of Sensex and gold.

Should you invest in the gold market or the share market? With the markets globally uncertain and inflation hovers around every corner of our world, many look at this as a new Samvat year. A closer look at how investments in gold and the stock market compare this year to what you should expect down the line, and steps on how to build well-balanced and secure your investment portfolio.

Understanding The Current Investment Landscape

The Indian stock market has performed quite well to this date this year by letting the Sensex come good for YTD (year-to-date) returns of around 11.02% in 2024. Not even Nifty was spared from making an all-time high 26,277 in midst of all global volatilities. But lately corrections are kept in check while it takes away ₹ 90,000 crores away from the Indian market due to FII in the month of October. This has caused a little short-term churning and many investors looking for safer investments, like gold.

On the flip side, gold and silver ETFs have taken the world by storm; with gold providing almost 30% returns and silver closing in on 28% YTD. Thereby, these precious metals prove themselves as safe havens, especially when one or more geopolitical uncertainties surround or inflationary pressures dominate.

Why Gold May Dazzle in Samvat 2081

Gold is generally viewed as a “safe asset,” which would either remain intact or even increase in value when the economy performs poorly. Here are some factors that drive its appeal upwards:

Inflation Hedge: Gold acts as an inflation hedge, wherein it goes up whenever purchasing power decreases.

Portfolio Diversification: Low correlation of gold with equities makes it a perfect vehicle for portfolio diversification in times of equity volatility.

Indian Market: Gold has remained buoyant in the Indian market primarily due to increased buying during festivals and good sentiment on the Diwali season.

Analyst Jateen Trivedi, head of research and commodities with LKP Securities, said that gold prices may find support at ₹78,200 and an upside target of ₹80,000 by Diwali. Trivedi said investors are looking towards investing in gold as a ‘safe haven’ currently owing to turbulent market conditions-a US election that can actually influence global markets in particular.

In gold ETFs, a whole variety of investors is finding ever-increasing demand with such a desire for greater liquidity and professional management. By these, investors will still be able to exploit gold’s stability without owning a physical asset; therefore gold is a very tax friendly and practical form of investment. Even silver ETFS have some great value propositions for investment diversification with silver playing not only precious metallic roles but also industrial in many applications.

What about Sensex and the Indian equity market?

Despite the recent correction, the Indian stock market has shown resilience. Retail investors have been very active in India, and this has actually stabilized the market, as per Rochak Bakshi, CEO of True North Financial Services. Thus, despite volatility remaining at such high levels, the momentum is expected to carry the trend forward into Samvat 2081.

Bajaj Broking Research thinks the Indian market could reach 28,400 by Diwali 2025, based on technical analysis of an upward trendline that has been in place since 2014. The path is unlikely to be linear, though, and corrections along the way are expected to present buying opportunities for long-term investors.

SIP Advantage for Equity Investors

SIPs, therefore, are the smart way for investors who wish to invest in the stock market but are a little wary of volatility. They allow investors to spread investments over time, which is beneficial during market downturns. Periodic investments allow investors to accumulate more units when prices are low and, therefore, yield higher returns over the long term.
Chintan Haria, Principal- Investment Strategy, ICICI Prudential AMC, suggests, “In the present kind of markets, SIP will prove very effective and stocks can go into correction”. He also believes, it’s an ideal strategy known as “rupee cost averaging” that ensures investor gain through price fall so market timing risk reduces accordingly.

Pros and Cons: Gold vs. Sensex for Samvat 2081

Every investment has its benefits, and at the same time, this all depends upon the individual’s risk capacity and their goals of accumulating finances about which to decide whether one would invest in gold or equities. Let’s know the critical points to think about now:

Growth Potential:

Gold: Normally growth potential is steady but inferior as compared to equities.
Equities (Sensex): Indian equities do possess superior growth potential because of an economy, which still needs a rebound and hence carry enormous risk with them.
Gold: Lower risk, as gold tends to do well during uncertain or falling markets.
Equities (Sensex): Higher risk because of market fluctuations, but long-term gains are higher

Liquidity and Ease

Gold ETFs and Mutual Funds: Liquid just like equities and hassle-free to manage
Equities (Sensex): Highly liquid, but stock-specific risks may be attached to investment in individual stocks

Diversification to Success in Samvat 2081

Diversification would be the way to help an investor maximize returns but in managing risk. Balanced diversification may include having some gold and equities in the portfolio. Strategies which are recommended include: the 50-50 split; that is when the investment between gold and equities is split where each is allocated 50%.
60-40 or 70-30 in Equities: Higher equity allocation for the aggressive investor and better returns through gold as a shock-absorber in downmarkets.
SIPs: Regular investment in equity SIPs can reduce the dampening effect of market correction. The purchase cost will get averaged out over the long term.
Gold as a Hedge: Regardless of the portfolio, a 10-15% allocation to gold acts as a hedge against market volatility

Final Word: Samvat 2081 Investment Outlook

Both gold and Sensex present something different with a new year, and so we end up before the advent of Samvat 2081. Since global market concerns have now gone to make gold one asset that continues to find strength in a stability with high potential being an inflation hedge, people may seek that. With historical outperformance, it could make the Indian equity market one in which it might deliver far better results for an investor who remains ready for taking volatility for granted.
Trading during Diwali Muhurat is like a new beginning. The Samvat of the year is promising to be quite an interesting one for investors. Be it investing in gold or the Sensex, or even trying to balance between the two, aligning the strategy with financial goals and risk appetite will be crucial to ensure a good year ahead.

Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.

Read More Trending News At TheNewpost.in

Recent Updates

Web Stories

India’s gig economy:
India’s gig economy:

Market Updates

India’s gig economy: