Equities set for modest gains in 2025, gold to outperform amid economic uncertainty
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Equities remain well-poised to notch up gains in 2025 but investors must brace for more modest returns as uncertainty over the slowdown in corporate earnings growth and the US Federal Reserve’s interest rate direction may put a lid on advances. Gold, which outperformed the Sensex and Nifty in 2024, too may extend upsides though the likelihood of higher interest rates may take some shine off the yellow metal. In 2024, the Nifty gained 8.5%, while gold traded in Mumbai rose 19.12%. Fixed income returns have largely been in the range of 7-9%. “Both equities and gold are expected to do well in 2025 also, but the return expectations from equities should be moderated given the slowdown in the economy and the global markets that remain in f lux,” said Harsha Upadhyaya, CIO-equity at Kotak Mahindra Asset Management. Wealth advisors said returns from the stock market will be hard to come by as the bullish momentum may be elusive, making it imperat...