Mumbai— Gold has outperformed all other asset classes so far in FY25, delivering a stellar 41% return in USD terms and 33% in INR, according to the National Stock Exchange’s April ‘Market Pulse’ report released Monday.
Amid global economic uncertainty and shifting investor sentiment, gold’s status as a safe-haven asset surged, making it the top choice for both global and Indian investors.
The report noted that global gold demand climbed to a 15-year high of 4,974 tonnes, fueled by a 25% increase in investment demand. Central banks remained aggressive buyers, collectively adding more than 1,000 tonnes of gold for the third consecutive year—more than double the average annual purchases from 2010 to 2021.
In line with this trend, the Reserve Bank of India (RBI) increased gold’s share in its foreign exchange reserves to 11.4% in 2024, up from 6.7% in 2014.
While gold has led in FY25, the report pointed out that over a longer 20-year horizon, Indian equities have delivered stronger returns. The Nifty has posted a 13% price return and a 14.4% total return, compared to gold’s 10.5% annualized return during the same period.
Retail investor participation in India also reached new highs. NSE’s total investor base hit 113 million by March 2025, with 21 million new investors added in FY25 alone—the highest in the past five years. Uttar Pradesh, Maharashtra, and Andhra Pradesh led the surge in new investor registrations.
On the trading front, India’s equity cash market turnover jumped from ₹90 lakh crore in FY20 to ₹281 lakh crore in FY25, growing at a 26% compound annual rate. The average daily turnover hit a record ₹1.1 lakh crore.
While overall index options turnover saw a slight dip, premium turnover in Nifty options surged 37%, now accounting for nearly half the total market share in index option premiums. (Source: IANS)
