Indian Stock Market Continues Bullish Streak
India's benchmark indices, the Nifty 50 and Sensex, extended their winning streak for the third consecutive session in November, maintaining positive momentum from Thursday's record-breaking performance. On Friday, the markets showed resilience despite some profit-booking activity, with the Nifty 50 standing at 26,239.45 and the Sensex at 85,832.07.
This continued upward movement comes after both indices achieved unprecedented heights on Thursday, with the Sensex scaling to 86,055.86 and the Nifty 50 reaching 26,310.45. Over the past three months, the Nifty 50 has demonstrated solid growth, registering a 3.2% gain that reflects sustained investor confidence in the Indian markets.
Precious Metals Shine Alongside Equities
In a remarkable parallel development, gold and silver have recorded consistent increases for the fourth consecutive month, challenging conventional investment wisdom. The performance metrics for precious metals are particularly impressive, with MCX gold appreciating by 24.23% over three months and gaining 6.71% in the last month alone.
Silver has outperformed even these substantial gains, surging by 38.80% over three months and posting a 14.28% increase in one month. The simultaneous rally in both equity markets and precious metals has sparked discussions among investors about potential shifts in fund allocation strategies.
Expert Insights on Market Dynamics
Market experts attribute the current bullish trend to multiple favorable factors, including anticipated India-US trade deal negotiations, growing optimism about RBI policies, potential US Federal Reserve rate cuts, and consistent inflows from foreign institutional investors.
Nirpendra Yadav, Senior Commodity Research Analyst at Bonanza, provided crucial context: "Recent analysis shows that in 2025, both equities and gold have rallied together. This co-movement breaks with the traditional inverse relationship many expect."
Yadav explained that "inflation concerns, fears of currency debasement, and general macro uncertainty have boosted demand for precious metals even as equities look strong." He emphasized that despite both asset classes rising simultaneously, gold and silver continue to provide valuable portfolio diversification due to their "low or unstable correlation with stocks."
Structural Case for Precious Metals Remains Strong
Mohit Gulati, CIO and Managing Partner of ITI Growth Opportunities Fund Foreign, offered a compelling perspective on the enduring value of precious metals. "Equity markets can rally all they want — it doesn't change the structural case for precious metals," he stated.
Gulati elaborated that in a world where "money is created freely and currencies carry no hard-asset backing, you almost have to stay structurally bullish on gold and silver." He projected that gold would continue compounding at roughly 5–7% annually over the long run, suggesting that any price dips should be viewed as buying opportunities.
Technical Outlook and Support Levels
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, provided specific technical analysis, noting that while equity rallies typically exert downward pressure on gold and silver, current global conditions suggest otherwise.
"Looking at the global landscape where the trade war continues and optimism around a potential Fed rate cut persists, a sizeable correction in gold and silver appears unlikely," Kalantri observed. He highlighted that continued buying by central banks and steady retail investor interest through ETFs are providing strong underlying support for precious metal prices.
Kalantri identified key support levels, stating they maintain a "bullish stance and will stay on the buying side as long as gold holds above $3,850 and silver above $44." On MCX, he expects gold to find support near ₹1,22,000, while silver may take support around ₹1,51,000. Major resistance levels are placed at ₹1,28,150 for gold and ₹1,65,740 for silver.
Broader Market Context and Future Outlook
Yadav pointed out significant performance disparities between asset classes, noting that while "Nifty 50 has been giving a return of 12%, the return of gold is 60% so far in 2025." This dramatic difference clearly demonstrates the impact of traditional negative correlation between bullion and equity.
However, he cautioned that "continued rise in uncertainty in geopolitics and recent expectation of a pause in dovish monetary policy may give more strength to the traditional correlation between equity and bullion prices."
The analyst also noted that Foreign Institutional Investors (FIIs) haven't yet made aggressive purchases, suggesting that consistent buying by FIIs could lead to a fresh influx of capital into the equity market. Additionally, he emphasized that global tensions haven't subsided, which continues to support precious metal prices.
Overall market sentiment remains cautiously optimistic, with both equity and commodity markets showing strength amid global uncertainties and domestic economic resilience. The Nifty 50 index has only begun its upward trend, and if it maintains its position above 26,300, experts believe it will attract more buyers and potentially extend the current rally.
