00:00 While the stock market and gold prices are hitting record highs simultaneously, in a
00:06 niche of reaction today, India's main equity benchmark Nifty 50 hit a record high on the
00:12 very first day of this financial year, led by Nifty Bank and Financial Services.
00:18 What is surprising is gold prices also touched all-time high today, widely driven by the
00:24 anticipated US Federal Reserve's interest rate cut in the coming months and other geopolitical
00:30 unrest in the world.
00:32 In an ideal world, investments in the stock market is considered risky because it gives
00:37 high returns, and gold is also considered as a safe-heaven asset as it usually gives
00:44 guaranteed returns.
00:46 So it was highly unlikely that gold and stock market will move in the same direction so
00:51 far, but that perception has changed.
00:54 Gold prices have risen over 8% this year so far, and analysts say that the wedding season
01:00 will boost yellow metal prices further.
01:04 Last year it rose more than 15% in India, the world's second-biggest consumer of the
01:09 precious metal.
01:10 But India's gold imports are expected to dip over 90% in March compared to previous month.
01:17 Despite that, gold prices have risen all over the world and demand for the yellow metal
01:22 is predicted to continue by market participants.
01:26 Indian stock markets too, on the other hand, is touching highs, and just before the 2024
01:32 Lok Sabha election, which will be closely watched by investors, Nifty 50 is up around
01:39 3.45% this year so far.
01:42 The benchmark equity index ended the financial year 2023 and 2024 with noteworthy gains of
01:49 around 20% during FY24.
01:52 Historically, stock markets have always given positive returns during an election time.
01:58 Even in 2019, Nifty hit record highs just before the election results.
02:03 While past performance does not symbolize future outcomes, historical market trends
02:08 can prove meaningful insights.
02:11 This week, Nifty will be driven by the Reserve Bank of India's monetary policy outcome.
02:17 The RBI is widely anticipated, expected by economists to keep its repo rate at 6.5%,
02:24 which is unchanged from last time.
02:26 And it will take cues from the Federal Reserve, the US Federal Reserve in the coming months.
02:31 Once they start cutting rates, the RBI will follow the trend.
02:34 Thank you so much for watching us.
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