Business
Gold vs Sensex: Gold beats Sensex with 50.1% returns; outperforms over three, five, ten & twenty-year periods – The Times of India
Gold vs Sensex: Gold has delivered superior returns compared to Sensex over a several year horizon. Gold has surpassed domestic equities in terms of returns, primarily due to unprecedented buying by global central banks and investors seeking protection against inflation. The precious metal has yielded 50.1% returns in rupee terms during the last year, whilst the Sensex declined by 1.2%.The significant uptick over the past year can be attributed mainly to central banks’ acquisitions, as uncertainties related to trade disputes have increased the appeal of secure investments, according to an ET report.“Central banks continue to buy gold with about 25% of purchases coming from them,” says Sridhar Sivaram, investment director at Enam Holdings. “They are buying gold because of the ongoing tariff wars and as a diversification against the US treasury,” he was quoted as saying.
Gold outperforms Sensex
Gold has demonstrated superior performance compared to Sensex across multiple timeframes spanning three, five, ten and twenty years.In the past three years, gold yielded an annual return of 29.7%, surpassing the Sensex’s 10.7%. The five-year performance shows gold achieving 16.5% returns, slightly higher than the Sensex’s 16.1%.Looking at longer periods, gold’s performance remained robust with 15.4% returns over a decade, exceeding the Sensex’s 12.2%. The two-decade analysis reveals gold maintaining 15.2% returns compared to the Sensex’s 12.2%.
Why are gold prices rising?
Experts indicate that countries are shifting away from dollar-based reserves towards gold holdings. They recognise gold as a reliable value repository and protection against currency deterioration.“Gold extends beyond being only a hedge against inflation, as the US Federal Reserve is on the stage to start cutting interest rates with hotter inflation,” says NS Ramaswamy, head-commodity desk, Ventura securities.
Gold 995 – Mumbai
He further notes that anticipated US Federal Reserve rate reductions this month and ongoing uncertainty regarding President Donald Trump’s tariff decisions will sustain gold’s strong position.Recently, gold prices on Comex reached an unprecedented $3,715.2 per troy ounce, whilst silver exceeded $43, achieving its highest value in 14 years.
What is the outlook for gold prices?
Experts indicate that with gold prices having already surged 38%, future increases might be more modest. Nevertheless, portfolio diversification should include gold allocation between 10-15%. “Investors should continue to allocate 10% to gold in their portfolios as it is the only hedge against currency, but you should not expect returns to be as high as the previous year,” said Sivaram.For optimal investment strategy, Ramaswamy suggests maintaining 15% gold allocation, recommending purchases during price corrections.Recent significant price appreciation has led several market observers to favour equity investments over gold.According to research by Edelweiss Mutual Fund comparing Sensex to Gold ratios, gold currently appears overvalued relative to equities. Historical data suggests equity outperformance when the ratio dips below 1, whilst higher ratios typically indicate stronger gold performance.“The current ratio is 0.76, which is below the long-term average of 0.96,” Niranjan Avasthi, SVP and head- product, marketing & digital at Edelweiss Asset Management. “In the past when this ratio had been below 0.8, the BSE Sensex has given an 3 year average forward return of 25.12% compared to gold that could return 7.21%.”(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Business
US markets today: Wall Street drifts near record highs as Big Tech results; Trump-Xi trade talks pull investors in both directions – The Times of India
US markets ended mixed on Thursday, with investors juggling upbeat and cautious signals from Big Tech earnings and renewed optimism around US-China trade ties.The S&P 500 slipped 0.2% from its all-time high earlier this week, while the Nasdaq composite lost 0.6%. The Dow Jones Industrial Average, however, gained 199 points, or 0.5%, by mid-morning trade, AP reported.Markets were reacting to comments from US President Donald Trump, who called his meeting with Chinese President Xi Jinping a “12 out of 10” and announced plans to reduce tariffs on Chinese goods. Analysts, however, warned that despite the warm rhetoric, structural trade tensions remain unresolved.“The result was fine, but fine isn’t good enough given the expectations going in,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The results were more like small gestures instead of a grand bargain.”Big Tech weighs on sentimentTech stocks saw sharp divergences after earnings. Meta Platforms tumbled 11.3%, wiping off part of its 28% gain this year, as investors reacted to higher spending plans for 2026. Microsoft fell 2.5% despite reporting stronger quarterly earnings and revenue, with concerns about slower Azure growth and rising investment costs.Alphabet bucked the trend, rising 5.3% after reporting better-than-expected profit and revenue. Together, Alphabet, Meta, and Microsoft make up nearly 14.5% of the S&P 500’s total market value — meaning their moves can swing the broader market.Broader movers and macro watchChipotle Mexican Grill slumped 18% after trimming its sales growth forecast, citing “persistent macroeconomic pressures.” In contrast, Eli Lilly rose 1.7% as strong sales of its diabetes and obesity drugs Mounjaro and Zepbound boosted profits, prompting an upward revision to its annual guidance.Sherwin-Williams gained 2% after beating profit estimates despite a “softer for longer” demand outlook, while Visa advanced 1.5% on stronger-than-expected results.Fed caution lifts bond yieldsThe 10-year US Treasury yield rose to 4.09% from 4.08% the day before, after Federal Reserve Chair Jerome Powell said a December rate cut “is not a foregone conclusion.” Traders still expect a rate reduction later this year, but with less certainty, according to CME Group data.In Europe, France’s CAC 40 dropped 0.9% and Germany’s DAX shed 0.2% after the European Central Bank held rates steady. Japan’s Nikkei 225 closed nearly flat after the Bank of Japan also kept its policy unchanged
Former Asda boss Roger Burnley is to join the board of Marks & Spencer.
He will become a non-executive director of the high street giant from December 1, the company told shareholders on Thursday.
The retail veteran was the boss of rival Asda from 2017 until 2021, when he left the business following its £6.8 billion takeover by the Issa brothers and TDR Capital.
He was retail operations director at Sainsbury’s before moving to Asda and is currently a non-executive director at Pets at Home.
Mr Burnley will become the latest supermarket heavyweight to join the business, after former Sainsbury’s boss Justin King stepped down earlier this year.
Mr King left the board in September after around six years.
The appointment comes after a turbulent year for Marks & Spencer after it was hit by a major cyber attack which forced it to shut down online sales for around six weeks.
It said the attack has cost the company around £300 million.
Mr Burnley said: “M&S is a much-loved brand which I have always admired as setting the standard in UK retail, and it is a privilege to be joining such an engaged board.
“Much progress has been made through the reshaping for growth strategy, but there remains so much opportunity, and I am looking forward to supporting the leadership team to capitalise on that in the years ahead.”
M&S chairman Archie Norman said: “Roger brings extensive experience in the food retail industry and supply chain transformation which will be invaluable as we enter the next phase of our plan to reshape M&S for growth.
Business
Ashwini Vaishnaw Approves Plan For 76 Passenger Areas At Railway Stations To Enhance Travel Comfort
New Delhi: Union Minister for Railways Ashwini Vaishnaw has approved a plan for developing 76 new passenger holding areas at various railway stations across the country ahead of the 2026 festival season. The decision was taken following the success of the passenger holding area at New Delhi Railway Station, which enhanced the pre-boarding comfort for travellers, according to an official statement issued on Thursday.
The new holding areas planned across the country will follow a modular design and will be constructed keeping in view local conditions. The Union Minister has directed that all holding areas should be completed well before the 2026 festival season, the statement said.
The New Delhi station managed the extremely heavy rush of passengers during Diwali and Chhath with the help of its newly developed holding area, which was completed within four months.
The Yatri Suvidha Kendra (permanent holding area) at New Delhi Railway Station is designed to accommodate approximately 7,000 passengers at any given time, significantly enhancing pre-boarding comfort and passenger flow.
The facility is strategically divided into three zones – Ticketing, Post-Ticketing, and Pre-Ticketing – to streamline passenger movement. The New Delhi station holding area can accommodate over 7,000 passengers and is equipped with 150 toilets, each for men and women, ticket counters, automatic ticket vending machines, and free RO water facilities.
Indian Railways had also run as many as 7,800 extra trains to clear the surge in passenger traffic for Diwali and Chhath, and set up War Rooms to monitor the festive rush.
Vaishnaw paid a surprise visit to the New Delhi Railway Station and conducted an on-ground assessment of the arrangements made for passengers during the festive season.
Indian Railways established a dedicated “War Room” at Rail Bhawan to monitor and manage the massive influx of festive travellers. This command centre enabled real-time monitoring and allowed officials to quickly address congestion, passenger complaints, and potential incidents, the minister said.
The war room has evolved into an effective system overseeing the entire Indian Railways network, as over 80 war rooms were active at the Railway Board, zonal, and divisional levels, according to an official statement.
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