Gold and silver, which have already surged to euphoric highs in recent months, could continue their upward momentum as global uncertainty persists, according to N Jayakumar, Managing Director and Chief Executive Officer of Prime Securities who also advise mutual fund investors to continue investing steadily through systematic investment plans (SIPs).
"Gold and silver have made a very recent kind of euphoric high" and that "long term they are headed substantially higher" he added in an interview with NDTV Profit, pointing to ongoing geopolitical tensions and currency volatility as key drivers supporting the precious metals rally.
He noted that investors should treat gold primarily as a currency hedge rather than as a substitute for equity investments.
“Gold is a currency hedge and not your equity portfolio,” he said, advising investors to maintain balance in their portfolios and deploy capital when valuations become attractive.
Bullish on Indian markets
Despite global volatility, Jayakumar remains positive on Indian equities. He noted that Indian markets have performed better than several other Asian counterparts in recent months, reflecting strong domestic participation and economic resilience.
According to him, the ongoing geopolitical conflict is likely to end eventually.
“The end of war is the only logical end to this conflict,” he said, adding that markets typically stabilise once geopolitical uncertainty fades.
Manish Chokhani, Director at Enam Holdings, also sees the current phase as an opportunity for investors.
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According to him, the market environment is favourable for buying on dips as valuations across several segments have corrected in recent months.
“This is an ideal market to buy on dips,” Chokhani said.
Double Down On SIPs
Jayakumar advised mutual fund investors to continue investing through SIPs and even increase allocations during periods of market correction.
“Double down on SIPs,” he said, suggesting that disciplined, regular investing remains one of the most effective strategies for long-term wealth creation.
Sectoral outlook
On sectoral opportunities, Jayakumar highlighted telecom and data centres as areas where valuations appear attractive.
He also expressed bullishness on the pharmaceutical sector, which he believes offers strong long-term potential.
In contrast, he cautioned that the information technology sector may no longer serve as the traditional safe haven it once was during periods of market volatility.
Markets Supported By Domestic Flows
Chokhani noted that Indian equities are currently being supported largely by strong domestic flows rather than foreign investments.
“Markets are currently running on domestic flows,” he said.
Chokhani added that foreign institutional investors may not return to Indian markets immediately, though the country's long-term growth story remains intact.
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“FIIs won't come back in a rush to India, but the long-term growth story of India is still intact,” he said.
Jayakumar also emphasised that the Indian market is becoming less dependent on foreign institutional investor (FII) flows.
“FIIs will come back, but we are not so dependent on them anymore,” he said, pointing to the growing role of domestic investors in supporting market liquidity.
Bottom May Be Near
Chokhani expects the market to approach its bottom in the coming weeks as valuations continue to adjust and earnings growth gradually improves.
“Valuations have corrected, and an earnings recovery is awaited,” he said. He also pointed out that companies just below the major index heavyweights currently offer more attractive valuations.
Among sectors, Chokhani remains bullish on defence, metals and infrastructure, which he believes are positioned to benefit from an upcoming investment cycle.
“We are at the cusp of a capex recovery,” he said, adding that sustained infrastructure spending and industrial expansion could drive the next phase of market growth.
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