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The prospects for investment in gold are pretty bright with mild recession and weaker equity earnings in the US can boost the prospects of gold.
The USD peaking-out is good for gold with good positive return 12 months after peaking. The tailwinds for the INR are always positive for domestic prices of gold, said Emkay Wealth Management.
Chinese economic growth on a positive trend is good for consumer demand for gold. Any escalation of geopolitical tension may create an uncertain global macroeconomic situation and thereby push gold prices up, it added.
Valuation gap
At the current time, Emkay believes select small- and mid-caps can outperform as the valuation gap with larger peers closes. Emkay Wealth prefers structural growth companies over cyclical as the commodity cycle has peaked, it said.
The dichotomy in the behaviour of the short and long-end of the curve is peculiar to the domestic markets. The inverted yield curve is a transient phase and yields may stay elevated till the policy stance is modified further. Moderation in money market yields is expected from late this year, said Emkay Wealth.
Also read: Aditya Birla Group forays into branded jewellery retail with ₹5,000-crore investment
The inflation in the US and India is moderating, but it has to be seen whether this trend is sustainable. The adverse impact of El Nino may push up prices, especially that of food. A reverse spike in the inflation data may delay the easing cycle and may force the US Fed to hike prices as the focus is clearly on controlling inflation, it added.
Dr Joseph K Thomas, Head of Research, Emkay Wealth Management, said equity market should deliver a lower double-digit growth in FY24 provided that there are no major negative surprises.
Ashish Ranawade, Head of Products, Emkay Wealth Management, said among various asset classes there are lot of traction and opportunities in the small-cap space in India and also the manufacturing and consumer-focused companies are expected to do well in the next few years due to favourable government policies and favourable demographics at play.
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