Global equity markets started the week on a mixed note, with India’s benchmark Nifty index swinging more than 100 points intraday before closing flat at 24,600. The index has now posted eight consecutive red candles, underlining the subdued sentiment in emerging markets.
In stark contrast, gold has become the standout asset of 2025, surging past ₹1,15,000 per 10 grams in India and reaching $3,815 an ounce internationally. The metal has jumped more than 50% since January, marking one of its sharpest rallies in half a century. Silver has followed a similar trajectory.
Analysts warn that such moves are rarely benign. “Gold is often a barometer of global anxiety,” said a Dubai-based wealth manager. “The scale and speed of this rally reflect deep macroeconomic stress from currency fragility to geopolitical uncertainties.”
For investors in India, the gold rush is even more pronounced as the rupee weakens against the dollar, compounding wealth erosion. The dirham and other Gulf currencies, pegged to the U.S. dollar, have provided a stronger hedge for investors in the Middle East, where demand for physical gold remains robust. Dubai’s bullion trade, already one of the busiest in the world, is expected to see record flows this quarter.
Market Snapshot:
- India’s Nifty ended down 0.08% at 24,600; Nifty Next 50 gained 1.03%.
- Mid-Caps added 0.25%, while Small Caps slipped 0.1%.
- Bank Nifty edged up 0.13%.
- Globally, the S&P 500 rose 0.6%, the Dow Jones rose 0.67%, and the Nasdaq rose 0.44% on September 26, with U.S. indices continuing to outpace most global peers over the past year.
Sectoral Moves in India:
PSU banks led gains (+1.78%) after a volatile week, supported by State Bank of India, Bank of Baroda, and Canara Bank. Oil & Gas (+1.3%) and Real Estate (+0.8%) also advanced. Defense stocks weakened sharply, falling between 4% and 7%.
Stock Watch:
- Winners: Wipro, Titan, ITC, NTPC, Bajaj Finance.
- Losers: Maruti Suzuki, Axis Bank, L&T, Bharti Airtel, ICICI Bank.
- Mover of the Day: Wockhardt Pharma rebounded 17% after clarifications that U.S. tariffs would not hit Indian pharmaceutical exports.
Investment Flows – A Global Contrast
Recent data comparing household portfolios highlight divergent patterns: Americans allocate around 32% of their wealth to equities and only 1% to gold, while Indians place 58% in real estate and 12% in gold, effectively doubling their equity exposure. The Middle East sits somewhere in between, with a cultural preference for physical gold alongside a rising appetite for global equities and sovereign-backed investments.
The Big Picture
As equities tread water and precious metals soar, investors worldwide face the challenge of balancing risk and return. For Gulf investors, Dubai’s role as a gold-trading hub is once again in the spotlight, while U.S. markets remain the primary engine of equity growth.
“Cycles change abruptly,” one regional strategist noted. “Ignoring gold’s signal now could prove costly. But in the long run, global equities, particularly in the U.S. and India, still hold the most room for wealth creation.”
Global Markets Flatline As Gold Surges To Record Highs, Signaling Stress
Anand Rai
Global equity markets started the week on a mixed note, with India’s benchmark Nifty index swinging more than 100 points intraday before closing flat at 24,600. The index has now posted eight consecutive red candles, underlining the subdued sentiment in emerging markets.
In stark contrast, gold has become the standout asset of 2025, surging past ₹1,15,000 per 10 grams in India and reaching $3,815 an ounce internationally. The metal has jumped more than 50% since January, marking one of its sharpest rallies in half a century. Silver has followed a similar trajectory.
Analysts warn that such moves are rarely benign. “Gold is often a barometer of global anxiety,” said a Dubai-based wealth manager. “The scale and speed of this rally reflect deep macroeconomic stress from currency fragility to geopolitical uncertainties.”
For investors in India, the gold rush is even more pronounced as the rupee weakens against the dollar, compounding wealth erosion. The dirham and other Gulf currencies, pegged to the U.S. dollar, have provided a stronger hedge for investors in the Middle East, where demand for physical gold remains robust. Dubai’s bullion trade, already one of the busiest in the world, is expected to see record flows this quarter.
Market Snapshot:
Sectoral Moves in India:
PSU banks led gains (+1.78%) after a volatile week, supported by State Bank of India, Bank of Baroda, and Canara Bank. Oil & Gas (+1.3%) and Real Estate (+0.8%) also advanced. Defense stocks weakened sharply, falling between 4% and 7%.
Stock Watch:
Investment Flows – A Global Contrast
Recent data comparing household portfolios highlight divergent patterns: Americans allocate around 32% of their wealth to equities and only 1% to gold, while Indians place 58% in real estate and 12% in gold, effectively doubling their equity exposure. The Middle East sits somewhere in between, with a cultural preference for physical gold alongside a rising appetite for global equities and sovereign-backed investments.
The Big Picture
As equities tread water and precious metals soar, investors worldwide face the challenge of balancing risk and return. For Gulf investors, Dubai’s role as a gold-trading hub is once again in the spotlight, while U.S. markets remain the primary engine of equity growth.
“Cycles change abruptly,” one regional strategist noted. “Ignoring gold’s signal now could prove costly. But in the long run, global equities, particularly in the U.S. and India, still hold the most room for wealth creation.”
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