Final Draft of Dissertation Report (Aakash Soni)

A DISSERTATION REPORT
ON
IS GOLD A BETTER AND SAFER ASSET THAN SHARES?
SUBMITTED BY
AAKASH SANDIP SONI
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
In the partial fulfilment of the requirements for the award of the degree of
MASTERS IN BUSINESS ADMINISTRATION (MBA)
Through
Progressive Education Society’s
MODERN COLLEGE OF ENGINEERING
MBA DEPARTMENT
1186A, Shivajinagar, Pune 411 005
BATCH 2018-20
DISSERTATION REPORT APPROVAL
The Dissertation report titled IS GOLD A BETTER AND SAFER ASSET THAN SHARES?
Submitted by Aakash Sandip Soni Seat no- to Savitribai Phule Pune
University in partial fulfillment of the requirements for the award of the degree of Masters
in Business Administration (MBA) has been evaluated.
Examiners:
1. External Examiner
2. Internal Examiner
Place: Date:
COLLEGE CERTIFICATE (TO BE ISSUED AFTER INTERNAL VIVA)
INTERNAL GUIDE'S CERTIFICATE
This to certify that the report of the dissertation submitted is the outcome of the
Dissertation Report work entitled IS GOLD A BETTER AND SAFER ASSET THAN SHARES?
carried out by Aakash Sandip Soni bearing Seat No.:........... carried under my
guidance and supervision for the award of Degree in Master of Business Administration
Savitribai Phule Pune University. To the best of my knowledge, the report embodies the
work of the candidate him/herself.
Ms.Supriya Lakhangaonkar.
DECLARATION
I Aakash Sandip Soni of MBA Batch 2018-20 hereby declare that the Dissertation Report
work titled IS GOLD A BETTER AND SAFER ASSET THAN SHARES ? which has been
submitted to Savitribai Phule Pune University is an original work of the undersigned and
has not been reproduced from any other source. I have not plagiarized or submitted the
same work for the award of any other degree. In case this undertaking is found incorrect, I
accept that my degree may be unconditionally withdrawn.
Signature: Date: _
Name: Aakash Sandip Soni Seat No:
Place: PR No:
INDEX
SR.NO CONTENT PAGE

NUMBER
Executive Summary
1 Introduction 1-3
2 Research Methodology 4
3 Literature Review 5-6
4 Data Analysis 7-36
5 Findings 37-38
6 Suggestions 39
7 Conclusions 40
8 Bibliography 41
Table and Chart
SR.NO CONTENT PAGE
NUMBER
Table No. 4.1.1 Monthly Gold and BSE Rate (January – December 2015)
Table No. 4.1.2 Quarter wise Gold and BSE Rate (January – December 2015)
1
7
Chart No. 4.1.2 Quarter wise Gold and BSE Rate (January – December 2015)
Table No. 4.2.2 Quarter wise Gold and BSE Rate (January – December 2016) 12
2
Table No. 4.3.2 Quarter wise Gold and BSE Rate (January – December 2017) 18
3
4
22
5
26
Table No. 4.6.1 Monthly Gold and BSE Rate (January – March 2020)
Table No. 4.6.2 Quarter wise Gold and BSE Rate (January – March 2020)
6
31
Chart No. 4.6.2 Quarter wise Gold and BSE Rate (January – March 2020)
Table No. 4.7.1 BSE & Gold Growth Rate 2015 to 2020
7 34-36
Chart No. 4.7.2 BSE & Gold Growth Rate 2015 to 2020
Executive Summary
A Dissertation is on "Is Gold a better & Safer Asset than Share?" The Report also includes reasons due to
which the prices of stocks and gold fluctuates. Some of the reasons are due to festive season, change in
Government policies, etc. This study is undertaken to conclude whether to invest in stocks listed on BSE or
in gold.
The Report consists of has charts and graphs explaining the changes in prices and growth rate year-wise of
stocks as well as shares. The project report has the value of stocks listed on BSE from the year 2015 to
2020 and also the reasons because of which there is a change in their value in 5 years. Also there is
information regarding value of gold from 2015 to 2020 and the reasons for the changes in prices.
The Report concludes a chart which explains that even the prices of gold rises in future, it still gives
relatively more returns also. It also explains that the growth rate of stocks is positive at first and then
becomes negative. The stock market is affected even if there is any scam on shares of one company.
Hence, stock market is a bit risky as compared to gold market.
With the help of the analysis, investors can invest in less risk free commodity. It can be concluded that
investors can invest their money in gold as it is less risky even though their prices rise in future as
compared to that in shares and other commodities in market.
Introduction
Bombay stock exchange-
The Bombay stock exchange was founded by Paremchand Roychandan an influential businessman in
the 19th-century Bombay. He made a fortune in the stockbroking business and came to be known as the
Cotton King, the Bullion King or just the Big Bull. He was also the founder of the Native Share and
Stock Brokers Association, an institution that is now known as the BSE
While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first location of the
earliest stock broker meetings in the 1850s was in a much more natural setting — under banyan trees
— in front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers
moved their location to another leafy setting, this time under banyan trees at the junction of Meadows
Street and what then called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the
number of brokers, they had to shift places repeatedly. At last, in 1874, the brokers found a permanent
location, the one that they could call their own. The new place was, aptly, called Dalal Street (Brokers'
Street).
The Bombay Stock Exchange is the oldest stock exchange in Asia Its history dates back to 1855, when
22 stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these
meetings changed many times to accommodate an increasing number of brokers. The group eventually
moved to Dalal Street in 1874 and became an official organization known as "The Native Share &
Stock Brokers Association" in 1875.
On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. In 1980, the exchange moved to
the Phiroze Jeejeebhoy Towers at Dalal Street Fort are In 1986, it developed the S&P BSE
SENSEX index, giving the BSE a means to measure the overall performance of the exchange. In 2000,
the BSE used this index to open its derivatives market, trading S&P BSE SENSEX futures contracts.
The development of S&P BSE SENSEX options along with equity derivatives followed in 2001 and
2002, expanding the BSE's trading platform.
Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an
electronic trading system developed by CMC Ltd. in 1995. It took the exchange only 50 days to make
this transition. This automated, screen-based trading platform called BSE On-Line Trading (BOLT)
had a capacity of 8 million orders per day. Now BSE has raised capital by issuing shares and as on 3
May 2017 the BSE share which is traded in NSE only closed with Rs.999 .
The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange initiative
joining in September 2012
BSE established India INX on 30 December 2016. India INX is the first international exchange of
India. BSE launches commodity derivatives contract in gold, silver.
Page | 1
GOLD
G old has occupied a unique social status for millennia. It has a long history as a valuable metal and
its history is far from over .Gold is resistant to most acids though it does dissolve in aqua regia a
mixture of nitric acid and hydrochloric acid which forms a soluble tetrachloroaurate anion Gold is
insoluble in nitric acid which dissolves silver and base metals a property that has long been used
to refine gold and to confirm the presence of gold in metallic objects, giving rise to the term acid test
Gold also dissolves in alkaline solutions of cyanide which are used in mining and electroplating. Gold
dissolves in mercury forming amalgam alloys, but this is not a chemical reaction
A relatively rare element, gold is a precious metal that has been used for coinage, Jewellery and
other arts throughout recorded history In the past, a gold standard was often implemented as
a monetary policy but gold coins ceased to be minted as a circulating currency in the 1930s, and the
world gold standard was abandoned for a fiat currency system after 1971
A total of 186,700 tonnes of gold exists above ground, as of 2015. The world consumption of new gold
produced is about 50% in jewellery, 40% in investments and 10% in industry Gold's high malleability,
ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity have
led to its continued use in corrosion resistant electrical connectors in all types of computerized devices
(its chief industrial use). Gold is also used in infrared shielding, Colored-glass production, gold leafing
and tooth restoration. Certain gold salts are still used as anti-inflammatorie in medicine. As of 2017,
the world's largest gold producer by far was China with 440 tonnes per year.
Reasons why the price of gold is high include:
 Scarcity: Gold is difficult to find and extract in the real world. In the late 1800s, any town with
a single gold nugget was instantly transformed into a gold rush town. Today, only about 2,000
tons of gold are created per year. To put that number into perspective, about 10,500 tons of steel
are produced in the United States every hour.
 Physical characteristics: Gold has some phenomenal physical characteristics – especially

when used in electrical applications. It’s an excellent conductor, for example. Furthermore, no
metal is more malleable and ductile than gold. That means that just a small bit of gold can be
hammered into many smaller sheets. In fact, one ounce of gold can be stretched to form a wire
that is 50 miles long. Gold plated copper wire sounds expensive but it only requires one ounce
of gold to plate a 1,000 mile long thread of copper.
 Aesthetic attributes: One of the simplest reasons why gold is valuable is that it looks cool.
Over time, rulers have loved displaying gold in throne rooms, tombs, and on top of Egyptian
pyramids. Its unique coloring and luster have fascinated humans for millennia
.
 Wealth storage: The times when gold has increased in value are almost always coupled with
extreme economic circumstances. These extreme circumstances cause people to lose faith in
their country’s currency and buy a more concrete form of wealth: gold. Gold is seen to be a
good wealth storage tool around the world.
Page | 2
What does the Future hold for Gold?
 Just like any commodity, it’s impossible to accurately predict the price of gold. Many have
tried and many have failed.
 very day, thousands of investors around the world study all of the metrics involved in the price
of gold. Some of these experts will take all of this information and accurately predict the future
price of gold, while other experts will see the same information and guess wrong.
 If you want to get rich from gold, then you need to find experts you trust. Find an expert that
has accurately predicted various gold value spikes over history. Find one who takes all of the
information available and uses that information to make an informed decision.
 Or, try to research the information yourself and see if you can guess correctly. Ultimately, the
price of gold has grown fairly steadily over the past few decades, and many experts predict that
it will continue its gradual climb over the next few years.
Page | 3
Research Methodology
Research Design
The data which already collected and available in published or unpublished form, such data are known
as secondary data. Secondary data are the data collected processed and published by someone else for
their purpose.
Method for collecting Secondary Data:
 Online database information

 Wikipedia for collecting stock prices of Bombay Stock Exchange
 Wikipedia for collecting prices of gold
Objective
 To analyse whether gold has been a safer and better asset against shares in India.
Page | 4
Literature Review
"Is Gold a Hedge or a Safe Haven? written by Mohd Fahmi Ghazali, Hooi-Hooi Lean and Zakaria
Bahari.observed that gold plays an important role as a hedge, but its characteristic is short-lived. On
one hand, it can be concluded that gold is safe to invest in some thresholds. On the other hand, it can
also be concluded that gold can also be risky for stockholders during financial stress. Therefore, it can
be advisable to hold a well-diversified portfolio could help in providing reasonable return and
protection from economic collapse. A large and growing body of literatures investigate the role of gold
in portfolio allocation mainly due to the for centuries, gold is perceived to be important in providing
valuable diversifying qualities beyond those achievable in a portfolio devoted solely to financial assets.
Using price of gold quoted, they argue that gold can be a good asset for portfolio diversification since it
allows to reduce risk and increase returns.
According to"Causal Relationship between Gold Price and Sensex: A Study in Indian Context." written
by Prof. S.P Narang and Raman Preet Singh. Gold has been used as an important instrument for
investment to hedge against inflation or in the form of jewellery. There are many factors because of
which the demand for gold is increasing day by day. According to the world gold council, gold demand
in India is about to rise 33% by 2020.Recently India has become the largest consumer of gold and price
of gold Is likely to go past 32000 mark in next couple of years. There is completely opposite
relationship between dollar and gold price The results of the analysis show that there is no as such
relation between the gold price and Sensex.
"Investment in Gold: Trends and Analysis of Indian Stock Market" which is written by Dr. Sunaina
Kanojia and Silky Jain identified that With the increase in the size in financial instruments and
investment alternatives, the role, usage and scope of commodity gold has been increased. With the help
of analysis it can be examined that the performance of gold and nifty after adjustment for inflation and
to check whether the inclusion of gold in an optimal portfolio improves its performance or not. With
the use of the graphs and data anaylsis it supports the fact that inflation adjusted performance of gold is
better than the inflation adjusted performance of nifty. In addition, it also proves that inclusion of gold
in optimal portfolio improves the performance Gold is amongst the earliest metals known to humans,
and has been considered precious metal since ancient times, however, its history as a commodity is a
bit more recent. Despite of rich literature on the precious metal gold, the commodity gold has only been
researched narrowly. Herbst found that the historical evidence simply did not support the conclusion
that, over the long run, gold is superior to common stocks as an inflation hedge. However, gold was
generally not a safe commodity for bonds in any market. Moreover, gold functioned as a safe haven for
a limited period of time, around 15 trading days.
"A study on gold as safer investment alternative among small and medium investors" written by
Shobha C. Reported that Among the various precious metals “Gold” is the most popular as an
investment. This is so because it is a mainstream asset as it is not only an effective diversifier but When
compared to large financial assets it would also provide competitive return. ‘Gold as a safer investment
alternative’ by considering its risk and return in terms of other investment alternatives like stock and
bond. The study also analyses various demographical factors that influence on the decision to invest in
gold and as well as in selecting a particular kind of gold investment.
Page | 5
"Gold versus stock investment: An econometric analysis." whic h is written by Martin Surya Mulyadi
and Yunita Anwar Pointed out that investment Investment can be defined as idle money which is put
away for future use. Investors could invest their hard earned idle money in various investement
instruments just like share market, mutual fund, real estate or gold. Gold has proved to be the most
reliable and safer option to invest in which could offer you good financial returns with minimum risk
Historically, the gold has been considered as safe haven for the investors; “an investment that is quite
safe from crisis” i.e A better option from other stocks.A review on the literature reveals that gold
investment gives an advantage as a reliable instrument for diversification and a safe instrument in
extreme stock market conditions. In contradiction, stock investment is vulnerable to economic risks as
well as global stock market risks.
Page | 6
Data Analysis
Average BSE
Month Gold rate Average Gold Rate BSE
Rate
January 28,298 29844.16016
February 28,197 27,831 29522.85938 29797.25326
march 26,997 30024.74023
April 27,148 29094.60938
may 27,695 27,321 28071.16016 28378.17318
June 27,120 27968.75
July 26,800 28578.33008
august 27,689 27,189 28417.58984 27822.58008
September 27,078 26471.82031
October 27,228 27618.14063
November 26,450 26,476 26824.30078 26899.62044
December 25,750 26256.41992
Month Average Gold rate Average BSE Rate

January -March 27,831 29797
April-June 27,321 28378
July- September 27,189 27822
October - December 26,476 26899
2015
31,000
29797
30,000
29,000 28378
27,831 27822
28,000 27,321 27,189
26899
27,000 26,476
26,000
25,000
24,000
January -March April-June July- September October - December
Average Gold rate Average BSE Rate
Page | 7
BSE 2015
After a superb 2014, the New Year began with further strong performances from Indian equities. The
S&P SENSEX index of blue-chip equities rose by 6% to finish the month at 29,183. Among BSE
SENSEX sectors, Realty proved the clear winner, gaining by over 16%, while Metal proved the laggard
and the only sector to post a loss for the month. Oil and Gas came second from the bottom, reflecting
the poor performance of commodities - including industrial metals and energy – that has continued into
the New Year. The Indian Rupee strengthened against the U.S. Dollar in January, as the Reserve Bank
of India (RBI) cut the repo rate by 25 basis points to 7.75% from 8%, ahead of its February 3, 2015
policy review meeting. The RBI affirmed that inflation has fallen significantly below its target of
8%.The yield on 10-year Indian sovereign bonds fell by a few basis points as each of our local fixed
income indices gained by over 1%, largely tracking gains in yields elsewhere in the developed world.
Before the weekend, February looked to be an indifferent month for the Indian markets.The traders
judged the budget to be business friendly, adding points to the S&P BSE SENSEX to make it 0.6% for
the month The S&P BSE IPO index of recently listed companies lost 5.2% in February while - the S&P
India LargeCap Growth extended its year-to-date lead with a rise of 2.9%. A majority of BSE sectors
gained on the month; Information Technology came top with 7.1%. In the rest of the world, the rise in
energy prices this month provided a fillip to the beleaguered shares of oil and gas companies, but not to
the S&P BSE Oil & Gas Index - the worst performing and down 4.5% S&P BSE India 10 Yr Sovereign
Bond Index rose by 0.4% during a quiet month in the fixed income markets.The S&P Indian Rupee
Index also gained by 0.4 India's equity markets suffered in March as the S&P BSE SENSEX recorded
a loss of 4.6%. Recovering from a dismal February, new companies - as represented by the S&P BSE
IPO index - had the distinction as the only gaining strategy index. Growth slightly outperformed value,
with Infrastructure also clocking in with strong outperformance. Financials and commodity-related
companies were best avoided this month and this quarter. The Indian rupee was more or less unchanged
against the dollar; bond yields in the U.S. and India also finished the month more or less where they
started. India's equity markets recorded a second consecutive month of losses. According to analysis
the Sensex shows an average of 29,798 for the month of January, February,& March
The S&P BSE SENSEX had a total return of -3.4% in April, and moved into negative territory for the
year. Profit-taking and a diminished lack of enthusiasm for Indian equities from foreign investors were
popular scapegoats for the poor performance. Valuations may also be weighing on equity investors.
The S&P BSE SENSEX is currently trading on a PE multiple close to 19 - well above its historical
average - while the index's price-to-book ratio of close to 2.9 suggest that a fairly heroic level of
earnings growth is already baked into prices. Growth companies particularly suffered in April; the S&P
India LargeCap Growth index underperformed its Value equivalent by close to 5% Among BSE
sectors, the performance of commodities again explained the outliers: with energy markets on a tear
and the S&P GSCI rising with them, the Energy and Basic Materials sectors bucked the trend and
posted gains for the moth. The rupee continued to weaken against the U.S. dollar, closing the month at
63.4.The S&P BSE SENSEX reversed from a downward trend in May and finished the month strongly
to complete a total return of 3.1% for the month, moving back into positive territory for the year. The
S&P BSE Telecom index was by far the best performing among sectors, moving into the lead on a
year-to-date basis with a 9.7% total return this month. .May was a great month for new listings. The
S&P BSE IPO index topped our strategy chart with a 5.8% total return and currently leads on a year-to-
date and 12-month basis. Growth companies and the S&P India LargeCap Growth index slightly
outperformed value equivalents, a reverse from last month's more than 5% underperformance. The
Indian rupee has fared well in light of the remarkable strength of the U.S. dollar over the past year. The
Page | 8
home currency closed at 63.81, a strengthening of 0.3% on the month versus the US dollar. A third rate
cut this year from the Reserve Bank of India kicked off the month, together with cheering news of a
China-beating GDP growth figure of 7.5% The index dropped 5% in early June on fears of a second
successive drought this summer, until a fast-advancing downpour in the second half of the month
washed away the fears and the SENSEX recovered entirely to finish with a small gain; up 0.32% at
27,780. Bigger was better in June. The blue-chip SENSEX outperformed broader benchmarks that
include smaller stocks, with the S&P BSE SmallCap recording a 1.7% loss and the year-to-date leader
S&P BSE MidCap falling 0.2%.Newly listed companies and the S&P BSE IPO index have been a great
bet recently, leading our strategies year-to-date and up 46% since a year ago. June continued on trend
with a 1.2% gain, despite the majority of our other strategies stumbling to losses. Infrastructure, which
has been lagging the market for some time, also continued on its trend and underperformed; down
3.2%. Energy was the bright spot among S&P BSE AllCap sectors, rising 6.6%. Commodities had a
mixed month, with agriculture up and metals down, the S&P GSCI finished June with a 2.2% loss
According to analysis the Sensex shows an average of 28,378 for the month of Apirl,,May & June.
Indian stock markets were buffeted throughout the month by mixed news. On the positive side,
international investors appeared to be taking weakness in China as a good excuse to rotate into Indian
equities, while continued slides in the oil price have dampened inflation expectations and boosted the
prospects for consumers and business. The IMF also re-affirmed its 7.5% GDP growth expectation for
the region. The SENSEX closed the month at up 234 points at 28,115. Smaller and medium-sized
companies fared better, the S&P BSE MidCap and S&P BSE SmallCap indices returned a healthy 6.0%
and 7.1% respectivel Overall, the Indian markets proved to be one of the best performing of all
countries included in the broad-based S&P Emerging BMI, which suffered considerably this month in
response to a strengthening U.S. dollar and ongoing volatility in the Chinese markets.For the third
consecutive month, newly listed companies and the S&P BSE IPO index topped the strategy charts; a
45.5% total return for this index over the past 12 months places it more than 27% ahead of any other
Indian equity strategy index The Indian rupee dropped to six week low amid month-end demand for
U.S. dollar from importers, while an increasingly hawkish stance from the U.S. Federal Reserve gave
ground to expectations of a U.S. rate-hike in September The month added a further 200 points of
damage; the S&P BSE SENSEX closed August with a total return of -6.5% at 26,283.All of our Indian
broad and most of our strategy equity indices fell over the month; only one strategy returned a profit -
the S&P BSE SENSEX Inverse Daily rose 7.7%.The lack of legislation on simplifying the tax system
and the continued debate on allowing land to be bought for industry added a local color to the month's
bad news. Telecoms and Energy particularly suffered, the latter falling on 18 days out of a total of 22
trading days in August. Finally, India’s GDP figure announced after the market closed today was a
disappointing 7% annualized, versus 7.5% in the previous quarter. And two S&P BSE sectors even
posted gains: Healthcare continued its strong performance this year and over the past 12 months,
battling back from having almost all its monthly returns wiped out in the 5 days leading up to 24th
August to return 5.4% by the end of August. After a rocky path through August, September began with
further falls for Indian equities on the news of disappointing GDP growth for the second quarter.
However, the S&P BSE SENSEX turned a corner on September 7th and was already in recovery mode
when it was boosted by a larger-than-expected rate cut of 0.50%, announced by the Reserve Bank of
India (RBI) yesterday The late gains were not sufficient to bring India’s benchmark into positive
territory; the S&P BSE SENSEX closed at 26,155, with a total return of -0.4% for September and -
5.4% for the third quarter.The RBI’s actions had the expected effect in the fixed income markets: each
of our regional indices posted gains as the benchmark 10-year yield attained its lowest level in over two
Page | 9
years. Consumer price index (CPI) for the month of August slowed down to 3.66% , marginally lower
than July’s reading of 3.78%. India’s performance, and that of its currency, continues to draw admiring
glances from international investors facing drawdowns of over 10% in developed equities and 20% in
emerging equities this quarter.Among our sectoral and strategy indices, the S&P BSE MidCap, and the
Health Care and Information Technology sectors were notable gainers for the quarter. According to
analysis the Sensex shows an average of 27,822 for the month of July, Augest& September.
The S&P/BSE SENSEX had a mixed month, rising briefly above 27,600 on October 26 before steadily
losing 1,000 points over the final week to close at 26,657. All in, the S&P/BSE SENSEX closed
October with a total return of 2%.Returns were tightly clustered around the benchmark; small caps,
mid-caps, equity strategies and a fair few sectors all show a similar total return for the month A few
Indian equity indices were able to break from the pack. On the positive side, it was another great month
for the S&P BSE IPO index of newly listed companies, which gained by 5.16%, and the S&P BSE
India Infrastructure index, up 3.66% Although our commodity indices posted further losses this month,
commodity-related equities may have turned the corner; the S&P BSE Materials and S&P BSE Energy
sector indices both posted 6% gains The Reserve Bank of India announced relaxed restrictions of
foreign ownership of government debt at the end of September; investors were initially quick to take up
the offer The S&P BSE SENSEX dropped 511 points to close November at 26,145; making total return
for the month of -1.88%.The trend of outperformance by smaller companies – a theme so far in 2015 -
continued, with mid-caps outperforming large caps and the S&P/BSE Small Cap recording a 3%
outperformance of the S&P/BSE SENSEX. In S&P/BSE SENSEX sectors, November saw a reversal of
several recent trends. This year’s darling – Health Care – was bottom of the pack with a loss of nearly
10%. Meanwhile Utilities, which was the second-worst year-to-date performer in last month’s report,
topped the table with a 4.2% return The rupee fell over the month to 66.67 versus the U.S. dollar,
bringing it within 1% of the all-time-lows established back in September 2013.The India GDP growth
of 7.4% for the most recent quarter - announced after the close today - suggests that equities may get
off to a great start in December. The S&P/BSE SENSEX began this year in fine form, rising through
January and February to briefly breach the 30,000 mark in March. Since then, the index has seen a
series of stuttering declines and recoveries, the last of which occurred in December - the SENSEX fell
1,000 points by mid-month yet recovered to finish the month flat. The index total return for full-year
2015 was a loss of 3.7% India’s central bank cut interest rates four times this year as inflation eased
throughout the first three quarters. Since the late summer however, inflation has accelerated and
following November’s reading of 5.4% for consumer price inflation, the RBI kept interest rates on hold
at its December meeting. According to analysis the Sensex shows an average of 26,899 for the month
October , November& December at the Year Ended
Page | 10
GOLD 2015
Gold had an eventful year in 2015. The yellow metal, which started the year on a highly positive note,
went through phases of extreme volatility and managed to register the lowest rates in over 5 years
around July when global cues brought value down spectacularly. On the domestic front, rates suffered
in the second half of the year on the back of a weak monsoon, though demand picked up around the
festive and wedding season in October/November. The Government of India also launched new gold
schemes aimed at making use of the estimated 20,000 tonnes of gold lying in private hands in the
country. The schemes have so far received lukewarm response and more efforts in this direction can be
expected in 2016. The highest and lowest gold rate between months of January to March was Rs 2,870
(on 21st January) and Rs 2,599 (on 18th March). The fluctuations in the gold rate was due to seasonal
demand and strong US job growth data.
Gold opened in April on a strong note, appreciating to Rs.2,733 by 6th of the month on the back of
firming global trends. Weakening of US hiring activity clouded the forecast for increase in interest rates
which prompted increase in demand on the domestic front. The wedding season demand for gold also
helped spike value toward mid-April..Akshaya Tritiya, which is considered to be an auspicious day to
buy gold especially in South India, accounted for an increase of 10-20% in sales on the day. However,
gold rates were lower by almost 10%. Gold rebounded to Rs.2,750 by the end of April as uncertainty
about the Fed’s rate hike resulted in a weakening dollar and subsequently higher rates of gold.
Prices were mostly stable through June and stayed in the range of Rs.2,700-2,740 till 24th of the month.
Rates were marginally lower in the last few days of the month due to sluggish demand.
Sustained offtake from retailers and jewellery stockists amid strengthening global trends helped spur
prices at the start of July. Weak monsoon also played a part in subduing rural demands, which accounts
for almost 2/3rd of overall demand for gold in the country. The price drops continued for the first 10
days of August, figuring some of the steepest fall in bullion rates since 1999.
September was mostly stable for gold as prices fluctuated within 1 Gm Rs.2,600 and Rs. 2,700. The
prices were down around 8th of the month as gold fell to near three-week lows in global benchmarks
amid speculations of a rate hike. A recovering rupee also affected lower gold rates in the country.
Prices were lower around middle of the month before peaking towards late November. Prices declined
at the end of the month by slight margins. Prices in October started out on a cautious note. There was a
steep climb in rates on 3rd on the back of rebounding international markets as well as good demand
from domestic retailers and traders. Outlook for slim chances of any rate hike by Fed this year also
helped spur value of gold in global markets. A slowing global economy as well as increased domestic
buying on account of Navratra kept gold rates hovering above Rs.2,700 for the most of July, albeit
prices dropped below Rs.2,700 in the last week on weakening demand and expectations rose of rate
hike by the US Fed by December. Towards the end of November, prices dropped to 5-year low levels
in global markets as a rate hike looked inevitable before the end of the year. Prices however stabilised
by the end of the month with no large changes. December began on a positive note on short selling by
traders to prepare for the upcoming rate hikes. Rates started falling by 3rd as participants trimmed
positions following a weak global trend. Prices were mostly stable around Rs.2,590 before domestic
demand and firm overseas trends help uplift prices. Lower gold demand from retailers and jewellers as
well as eventual rate hike by the Fed kept prices low towards the end of the year even as global markets
fared slightly better. Gold ended the year on at Rs.25,750 for 10 gm.
Page | 11
Average BSE
Month Gold rate Average Gold Rate BSE
Rate
January 26,900 26116.51953
February 30,000 29,016 25002.32031 25532.81966
March 30,147 25479.61914
April 30,192 26100.53906
May 30,400 30,983 26837.19922 26681.04948
June 32,357 27105.41016
July 32,350 28240.19922
August 31,466 31,766 28532.25 28616.57617
September 31,482 29077.2793
October 31,000 28477.65039
November 31,407 30,312 28029.80078 27770.40365
December 28,530 26803.75977

April-June 30,983 26681
2016
35,000 31,766
30,983 30,312
29,016 28616
30,000 27770
26681
25532
25,000
20,000
15,000
10,000
5,000
0
Page | 12
BSE 2016
The S&P BSE SENSEX closed January with a loss of 1,247 points, for a total return of -4.75%.
The year began with major sell-offs in equity markets across the globe. The SENSEX, whose all-time-
high occurred exactly one year ago today, flirted with celebrating the anniversary by entering bear
market territory; at one point last week the index closed 19.3% down from the highs. In an indication
of the external and macroeconomic nature of market movements, the losses in Indian equities occurred
across the board. Very few of the indices posted gains; the S&P BSE SENSEX Inverse Daily makes an
obvious exception, the 1.1% positive total return from the Information Technology is nonetheless
particularly admirable. It was a better month for the fixed income markets, with gains in each of our
India-focussed indices. The broad-based S&&P BSE India Bond index gained by 0.5% in January.
The S&P BSE SENSEX dropped 7.5% in February; the benchmark has now given back all the gains
from the bull run that followed the 2014 electio The S&P BSE SENSEX is also now officially in ‘bear
market’ territory – down by 22% from the 29,448 closing high established almost exactly a year ago on
March 3, 2015. January’s retail inflation figure of 5.6% was a 17-month high. The S&P India Sovereign
Inflation-Linked Bond index gained nearly 2%, while the S&P India 10Yr Sovereign Bond index fell
0.4%.With crucial elections in largely agricultural states like West Bengal and Uttar Pradesh due this
year, the Indian budget today focused on providing greater income stability for farmers. The market
appeared unimpressed, with the SENSEX falling 0.7% in response. March began with the
announcement of the new Union government’s budget, which was well received by traders. The
S&P/BSE SENSEX soared to record the largest single-day point gain (+777) since the turmoil of late
2008. Value strategies have been facing headwinds globally in the past few months, but March saw a
significant reversal in trend; special mention is due to the S&P/BSE Enhanced Value Index, which
gained 17.20% in March and took the top spot among equity strategies this month. Our Indian fixed
income indices also posted significant gains in March and – unlike the equity markets – year-to-date.
The broad-based S&P BSE India Bond gained 2.04% in March, making it 2.53% for the first quarter
As might be expected given the strengthening markets and foreign inflows, the Indian rupee gained
against the U.S. dollar, appreciating by over 3% this month. According to the analysis, the sensex
showed an average of 25,532 for the months January, February and March,2016.
The S&P BSE SENSEX rose a little over 1% in April, coming to within less than 1.6% of a full
recovery from the losses earlier this year. Smaller and mid-cap companies continued to outperform
larger, with the S&P BSE SmallCap index gaining 4.56% and the new-company S&P BSE IPO index
rising 4.80% Among sectors, Materials led, with the 6.3% gain of the S&P BSE Basic Materials Index
providing the best return of any local index in this month’s report. The major news of the month was
provided by the central bank. The Reserve Bank of India trimmed interest rates by a quarter of a
percent on April 5th, to their lowest in five years Lifted by Financials in particular, the S&P/BSE
SENSEX gained 4.53% in May, bringing the benchmark into positive territory year-to-date. An
annualized GDP growth of 7.9% for 2016 was announced just after the market closed. The number
blasted through expectations of around 7.5%, and should see the SENSEX start June on a positive
footing. The government has been talking up India’s growth potential recently, with Finance Minister
Arun Jaitley the latest to address the international media with reassurances that India’s world-beating
growth can continue, citing public funding, foreign investment and urban demand as the central drivers
Foreign institutional investors (FII), who shunned India’s stock markets in January and February, have
been net buyers ever since. Despite a minor uptick in inflation (core CPI rose to 4.76% in April 2016
from 4.54% in March 2016), Indian bonds tracked the bullish economic data in May. The S&P India
Bond index gained 0.59%..As the rest of the world’s markets stumbled in shock over a “Brexit”, the
Page | 13
S&P BSE SENSEX shrugged off the gloom to close June up by 1.7%, finishing the month at a 2016
high.. The 7.18% gain in India’s blue-chip benchmark this quarter was the best since Modi’s victory in
the general election of 2014. Meanwhile, small caps and newly listed companies roared over the period
as the S&P BSE Small Cap and S&P BSE IPO rose 12.03% and 13.09%, respectively..The S&P BSE
Basic Materials led among sectors with a 7.25% return for June and 17.39% for the quarter. Predictions
for a bumper rainy season along with a continued recovery in commodity markets boosted returns.
With the very largest stocks generally trailing small- and mid-cap stocks, all of our equity strategy
outperformed the SENSEX this quarter. According to the graphs,it showed an average sensex of 26,681
for the months April, May and June, 2016.
The S&P BSE SENSEX posted steady gains throughout July, completing the month with an 4.11%
total return and breaking through the 28,000 barrier for the first time since August, 2015. Most sectors
gained, with S&P BSE Basic Materials shrugging off July’s fall in commodity prices to take the lead
with an 8.46% total return. S&P BSE Information Technology was the sole declining BSE sector; it fell
3.29%. Continued uncertainty over the identity of the next Governor of the Bank of India did little to
depress enthusiasm for Indian bonds; all of our India fixed income indices gained in July. The S&P
BSE India 10 Year Sovereign Bond Index rose 2.34%; its yield declined to 7.2%.The S&P BSE
SENSEX rose 1.54% in August, completing its 6th consecutive monthly gain and finishing on a 1-year
high Despite emerging indications of a relative slowdown in the economy, the approval of the Goods
and Services Tax Bill on 3rd August was welcomed by the market. Unsurprisingly, perhaps, cyclical
sectors benefited - the S&P BSE Consumer Discretionary Goods and Services and the S&P BSE
Energy gained 2.91% and 4.34%, respectively, over the month. The best performing sector was the
S&P BSE Basic Materials, returning 6.17% in August; the index’s total return of 40.93% since the turn
of the year is the best on this report. The S&P BSE India Infrastructure's 5.83% monthly return meant it
was the best performing equity strategy index, narrowly beating the S&P BSE Enhanced Value and the
S&P BSE Momentum, which returned 5.51% and 5.27%, respectively. The S&P BSE IPO and the S&P
BSE Sensex Inverse Daily were the only strategies in the red this month, returning -1.37% and -0.44%,
respectively. The S&P BSE SENSEX began September in bullish form, but a global equity sell-off
early in the month reversed the trend Additionally, the news that the Indian Army had conducted
strikes across the Line of Control in Pakistan on 29th September added to investors’ concerns – that
day’s 1.64% drop in the SENSEX was the largest fall this quarter. The benchmark finished the month
down 2.01%; up 3.58% for the quarter Indian Mid-Cap stocks continue to register superlative
performance. The S&P BSE MidCap is up by more than 19% year-to-date, outperforming large-caps
and small caps by more than 10%. According to the analysis of the months July,August and September,
it showed an average sensex of 28,616.
The BSE SENSEX celebrated Diwali with a small gain of 0.33% for October. The benchmark remains
in search of a direction, having range-traded since July. Smaller Indian companies outperformed mid-
caps, which themselves outperformed the largest stocks. The S&P BSE SmallCap Index boasts a
double digit return for the past three months. It was a mixed month globally, with volatility rising on
the back of a more open race in the U.S. election. VIX rose 22% over the month to close last Friday at
16.19.Global markets were initially shocked, and then quickly adjusted to the surprise victory of
Donald Trump in the U.S. Presidential elections. In the meantime, continued political intrigue among
the OPEC group of oil-producing nations sent energy prices see-sawing. Indian equity markets and the
SENSEX ended the month down 4.5%. Every sector bar Utilities and Telecoms fell. Indian bond
indices continued their spectacular 2016 performance; the benchmark S&P BSE India 10 Year
Sovereign Bond index gained nearly 4% this month, making it an over 15% total return year-to-date.
Page | 14
The S&P BSE SENSEX lost momentum from the first part of the year to fall 4.30% in the final quarter
of 2016. Despite this poor performance, India’s equity benchmark completed the year with a positive
total return of 3.47%. The S&P BSE Mid Cap index echoed the benchmark’s performance but with
greater volatility – declining by 8.49% in the fourth quarter but still recording a gain of 9.28% for the
year. The Indian government’s equity holdings performed particularly well in 2016: our best
performing thematic equity indices were the S&P BSE CPSE and S&P BSE PSU Indices; they gained
by 21.49% and 16.89%, respectively. Value stocks were rewarded this year, as the S&P BSE Value
rose by 16.56%. It was a superb year for India’s fixed income investors. The benchmark S&P BSE
India Bond index rose 13.01%. According to the sensex analysis, it showed an average of 27,770 for
the months October, November and December. Gold ended the year on at Rs.25,750 for 10 gm.
Page | 15
GOLD 2016
Gold gained value in the 1st full week of trading in 2016 as domestic demand picked up while global
cues also affected the upward rise in rates.Prices were Rs.2,594 on 4th and Rs. 2,631 on 10th.Gold
dropped to Rs.2,594 by 7th before rising on 8th and 9th by an overall margin of Rs.37 to touch
Rs.2,634 by 9th.Prices were stable at Rs.2,634 on 10th on account of the weekend. Prices were
Rs.2,679 on 11th and Rs.2,663 on 17th. Prices were Rs.2,663 on 18th and Rs.2,717 on 24th.Gold prices
appreciated in the 4th week.Rates were Rs.2,717 on 25th and Rs.2,759 on 31st.Gold prices were stable
at Rs.2,717 till 28th before appreciating on the last three days by an overall margin of Rs.42 to end the
week and month at Rs.2,759. Gold prices in India rose in the first week of February on the back of
positive global cues and strong internal demand from jewellers to meet the wedding season sales.
Prices were Rs.2,712 on 1st and Rs.2,868 on 7th.Gold appreciated on back-to-back days till 6th and
was stable on 7th on account of weekend holidays.Gold traded above Rs.2,800 from 4th to 7th.Gold
profited by an overall margin of Rs.156 through the week and touched a high of Rs.2,868 on 6th and
7th to close the week at 9-month high figures. Prices were Rs.3,008 on 15th and Rs.2,993 on 21st.
Gold prices appreciated toward the close of February, ending an especially gainful month that saw net
monthly gains at 4-year high levels. Rates were Rs.2,993 on 22nd and Rs. 3,037 on 29th.Prices were
spurred by strong global trends while they dipped a bit towards the end of the month on weak domestic
demand.Gold rose to a high of Rs.3,049 by 26th before settling at a healthy Rs.3,037 for the rest of the
month.Gold markets were closed in the many parts of the country as jewellers and traders went on a
strike to protest against the budgetary announcement of 1% excise duty on jewellery sales. Prices were
constant at Rs.3,030 over the course of the first week. A poor performance by the US Dollar helped
gold rates remain constant, with Indian markets performing well. Gold rates were steady at Rs 2,948
throughout the week.
Gold prices in April showed signs of improving, though the jewellers’ strike continued to affect
domestic demand and production. Gold was priced around Rs.2,900-Rs.3,000 per gram during the
month, with prices usually above the Rs.3,000 mark. Prices in May were also on the upswing, though
prices dropped due to fluctuations in demand and market conditions. Gold prices for May averaged
around Rs.2,960-Rs.3,120 per gram. Prices picked up towards the end of the month, reaching Rs.3,180
per gram as the month ended as U.S. markets fell sharply, which led to a surge for demand in
gold.Prices rose by 9% for the month, with gold prices also rising over the whole quarter on consistent
demand Gold prices registered a rise in July, though prices fluctuated due to differences in demand.
Gold prices ranged between Rs.3,170 to Rs.3,220 per gram during the month, with prices falling
towards the end of the month on poor demand. A drop in domestic demand due to a resurgent market
led to prices stagnating. The month of August saw demand for gold remain stable for most of the month
on consistent demand and slight increases in retail demand. Gold reached its highest rate for the year
during August as markets plummeted due to poor economic data, though the month saw an overall
decline in price. The price of gold in September was steady as the month began, though dips in price
were observed as demand rose and fell. Gold prices averaged between Rs.3,185 to Rs.3,230 per gram,
with overall prices seeing a minor incline.
The price of gold in October was characterised by fluctuations in price due to various factors.
Speculation of a U.S Fed rate hike led to the U.S. Dollar strengthening as demand for gold fell. A rate
cut by the RBI reduced spending on bullion as consumer sentiment was low. The introduction of new
taxation laws and stricter scrutiny of bullion purchases also reduced consumer appetite for gold.. Prices
in November received a boost as markets plunged following the shock victory of Donald Trump in the
Page | 16
U.S. presidential election. Gold prices rose as stocks and currencies fell, trading at Rs.3,099 per
gram.Gold prices in December were low as the country was still reeling from the demonetisation policy
and the resultant troubles associated with it Prices reached a high of Rs.2,893 at the beginning of the
month, falling during the month due to poor demand. Demand for gold declined as markets performed
well, bolstered by strong retail demand due to festive season purchases . Gold ended the year on at
Rs.28,530 for 10 gm.
Page | 17
Month Gold rate Average Gold Rate BSE Average BSE Rate
January 29,233 27980.39063
February 29,757 29,690 29065.31055 28956.77344
March 30,079 29824.61914
April 29,540 30184.2207
May 28,980 29,340 31255.2793 30987.45638
June 29,499 31522.86914
July 28,628 32672.66016
August 29,832 29,643 32686.48047 32627.75
September 30,470 32524.10938
October 29,896 33340.17188
November 29,740 29,679 33865.94922 33781.36328
December 29,400 34137.96875

April-June 29,340 30987
2017
35,000
33781
34,000
33,000 32627
32,000
30987
31,000
30,000 29,690 29,643 29,679
29,340
28956
29,000
28,000
27,000
26,000
Page | 18
BSE 2017
Indian equities began the year positively: the S&P BSE SENSEX gained 3.88% in January as nearly
every sector gained ground. Smaller and mid-sized companies outperformed in India, with the S&P
BSE SmallCap index recording a 7.40% gain. Continuing a trend established last year, Basic Materials
led among S&P BSE sectors; rising 13.79% in January. The only broad sector to fall was Information
Technology (down 5.72%), although Health Care and Energy contributed negatively to the more
narrow S&P BSE SENSEX January saw continued outperformance for our value and momentum
strategies in India; the S&P BSE Enhanced Value climbed 11.97%. The S&P BSE Momentum index
followed closely behind, rising 10.69% this month Following on from January’s strong start to the
year, the S&P BSE SENSEX added a further 4.01% of total return in February; it has now risen in nine
of the last twelve months.The more high-octane sectors (Energy, Information Technology and
Financials) rose the fastest, and contributed the most to the benchmark's returns. Our value and
momentum indices for Indian equities, which topped the charts in January, continued to outperform
their peers. However, the two strategy indices took second and third place respectively to the S&P BSE
IPO index this month, the latter rising 9.02%. The Reserve Bank of India surprised markets this month
by keeping rates unchanged; a cut was expected due to signs of a slowdown. The central bank cited
concerns over inflation, and hinted that a rate cut was not likely in the near future .The S&P BSE
SENSEX continued its strong start to the year; a 3.19% increase in March took the index past record
highs and to an 11.50% year-to-date return Buoyed by a significant state election victory for the ruling
BJP party, the Indian Parliament successfully passed the long-awaited goods and services tax bill.
Accompanied by economic data published early in the month that showed robust growth in the Indian
economy, a majority of S&P BSE sectors rose in March. Only Telecoms, Healthcare and IT fell. For
the quarter, every sector finished higher while Basic Materials led the pack, returning 20.53%. All but
one of our Indian equity strategy indices rose over the past month; the S&P BSE SENSEX Inverse
Daily was the natural exception. The 5.88% return to Quality ensured it was the best performing
strategy in March. Enhanced Value and Momentum were the best performing equity strategies over the
quarter, delivering 24.82% and 20.53%, respectively. According to the sensex analysis,January,
February and March gave an average of 28,957.
The S&P BSE SENSEX began April on nervous footing, but completed the month strongly - briefly
soaring through the 30,000 barrier before closing the month a shade back below it. It finished the month
with a total return of 1.01%; making it 12.62% so far in 2017. The risk-on sentiment for Indian equities
continued. Small-cap stocks outperformed medium-cap stocks again in April, which in turn
outperformed large cap stocks. Most S&P BSE sectors gained; Industrials led the pack (5.45%), whilst
Healthcare and I.T. fell by 1.90% and 7.12%, respectively Nearly every Indian equity strategy rose this
month; the S&P BSE SENSEX Inverse Futures Index was once again the exception. The 9.25% gain in
the S&P BSE IPO meant it was comfortably the highest returning equity strategy index. The S&P BSE
SENSEX continued its buoyant start to the year, making several all-time highs during May. It closed
the month at 31,146, only 14 points off the record high; the 4.13% monthly return took the index to a
17% return year-to-date .In contrast to April’s results, this month saw large-cap stocks outperform
medium-cap stocks, which in turn outperformed small-cap stocks.There was significant dispersion
among S&P BSE sectors this month, with a 19% difference between the best and worst performers.
Healthcare plummeted by nearly 10%, making it the worst monthly performance on this dashboard by
some distance, as continued scrutiny on pricing by regulators contributed to an underwhelming
earnings season for many pharmaceuticals. In anticipation of the July 1st implementation of the long
anticipated GST reform, Indian equities recorded their first monthly decline this year.The S&P BSE
Page | 19
SENSEX closed at an all-time high of 31,311 mid-month, yet lost momentum to finish the month down
0.26% at 30,922. The index finished the quarter up 4.91%. Lower than expected inflation and an
apparent slowdown in economic growth figured in the Reserve Bank of India's June decision to keep
rate changes on hold. All of our Indian fixed income indices rose. Nearly every strategy index fell this
month. The exception was the S&P BSE IPO, which gained 5.67% in June and 14.64% over the
quarter. The 35.83% year-to-date return for the index of newly-listed Indian companies is the highest in
this repor Further confirmation of hopes for a bountiful monsoon season sent the S&P BSE Fast
Moving Consumer Goods (FMCG) Index 13.54% higher over the quarter; expectations of higher
quality crops provided tailwinds for the companies selling these goods. According to the analysis ,the
average is 30,987 of SENSEX for months April,, May and June.
The S&P BSE SENSEX gained 5.44% in July to start the third quarter on the front foot. India’s
large-cap equity benchmark recorded 17 new all-time highs this month, before closing the month at a
record level of 32,515. The S&P BSE Momentum index was the best performing equity index strategy;
the 9.38% monthly return meant the index has increased 38.38% year-to-date. All other equity strategy
indices rose, apart from the S&P BSE SENSEX Inverse Daily, whose 4.21% fall was the natural
exception. All but one of the S&P BSE sectors rose in July; the anticipated benefit to the Indian
economy of the newly implemented GST reform provided tailwinds to a variety of companies. Fast
Moving Consumer Goods (FMCG) was the exception; it fell 3.15% this month. July’s record-low
reading of 1.5% in the Indian rate of inflation (as measured by the Consumer Price Index) may well
provide the Reserve Bank of India with sufficient wiggle room for the first cut in interest rates since
October 2016. A mild recovery in the S&P BSE SENSEX accompanied celebrations of India’s 70th
year of independence, but was not sufficient to offset a poor start to August for India’s large-cap equity
benchmark. The SENSEX finished the month down by 2.32%, its worst monthly performance so far
this year. Among Indian equity strategies, S&P BSE Momentum once again posted the highest monthly
return; a further 4.44% gain in August brought it to a 44.52% year-to-date return, more than any other
index in this report. S&P BSE SENSEX Futures was a notable laggard; its 2.89% fall meant it was the
only equity strategy to not beat the S&P BSE SENSEX. In what was a mixed month for S&P BSE
sectors, Energy and Basic Materials led the way with gains of 3.12% and 2.73%, respectively. These
returns came despite the fall in global commodity prices; the S&P GSCI dropped by 3.39%. The
healthcare sector now stands 10.36% lower than at the start of the year, and 18.25% lower than 12
months ago. The S&P BSE SENSEX fell 1.35% this month as figures showed India’s GDP growth had
fallen to a 3-year low at 5.7% in Q2; many attributed this slowdown to the lingering impact of the
goods and services tax (GST) However, the SENSEX rose 1.60% this quarter and now stands 18.85%
higher than at the turn of the year; gains in July were more than sufficient to offset the more recent
declines..In what was a challenging month for Indian equity strategies, the S&P BSE SENSEX Inverse
Daily Index posted the biggest gains as it rose 2.26%. The S&P BSE Low Volatility Index was the only
other equity strategy to gain this month – it increased 0.66%. Among S&P BSE sectors, Healthcare
increased the most - it gained 2.78% in September – but this was not enough to bring the sector into
positive territory over longer horizons; falls of 4.48% and 7.87% over the quarter and year-to-date,
respectively, are among the worst returns in this dashboard S&P BSE Energy delivered 12.55% this
quarter to make it the best performing sector since June. This return was supported by rising oil prices
this quarter, which also helped the S&P GSCI to increase 7.46% since June The analysis showed an
average sensex of 32,628 for the months July, August and September ..Above the analysis year ended
Sensex rate is to 33,781
Page | 20
GOLD 2017
Gold prices in India fluctuated in the first week of August as investors waited for the Fed Reserve’s
meeting on interest rates. Gold was priced at Rs.2,960 per gram on 1 August before falling to Rs.2,955
per gram on 2 August due to a minor dip in demand. The week ended with gold trading at Rs.2,930 per
gram on 6 August. Demand for gold rose in the final week of August due to persistent tensions between
the United States and the United States of America, with gold trading at Rs.3,017 per gram on 28
August. The decline in the price of gold in India continued as the Fed Reserve meeting offered some
sops to industry, resulting in gold falling to Rs.2,999 per gram on 31 August. On the 1st of September,
the yellow metal was trading at Rs.2,995 per gram. Prices increased marginally on the 2nd as they
reached Rs.2,997 per gram and traded at the same rate on the 3rd of the month. The metal opened at
Rs.3,105 per gram on 11 September, with local demand picking up marginally. Gold Price in India
surged to Rs.3,045 per gram on the 20th, thanks to the imminent arrival of the festive season. The last
day of September saw gold trading at Rs.3,040 per gram as festive season demand surged.
According to the analysis, the sensex showed an average of 29,643 for the months July,August and
September.The price of gold in India was steady as the month began, with the metal trading at Rs.
3,063 per gram on 1 October as markers were unstable after a prolonged period of volatility. Gold price
in India were recorded at Rs.3,017 per gram when trading commenced on the 8th of October.Gold rate
in India took a hit on the 17th as well as US dollar remained steady because of positive treasury yields.
The yellow metal traded at Rs.3,027 per gram on this day Gold rate in India rose marginally to
Rs.3,009 per gram the next day as investors increased purchases with a sell-off in the US dollar. Gold
rates in India saw no change on the 31st as the metal still traded at Rs.2,997 per gram due to the
ongoing two-day Fed Reserve meeting, where a new chairperson was expected to be named.
Though gold price in India improved slightly to Rs.2,972 per gram the next day, the 6th saw prices
plummeting to Rs.2,962 per gram as the dollar edged higher amid the possibility of an interest rate hike
by the Federal Reserve during the week. Gold was priced at Rs.2,911 per gram when the second week
of December began. However, gold price in India recovered to Rs.2,928 per gram on the 19th after the
dollar weakened with investors speculating the effect of the tax bill on the US economic growth. Gold
rates in India opened on a relatively weak note with the metal trading at Rs.2,947 per gram on the 25th
of December. During the 30th, gold rate went up to Rs.3,015 per gram to mark the largest yearly gain
since 2010.& Gold ended the year on at Rs.29,400 for 10 gm.
Page | 21
January 30,476 36443.98047
February 30,817 30,747 36256.82813 35659.8125
March 30,947 34278.62891
April 31,517 35213.30078
May 31,545 31,419 35993.53125 35694.7474
June 31,196 35877.41016
July 30,788 37644.58984
August 30,298 30,674 38989.64844 38522.86328
September 30,936 38934.35156
October 32,075 36616.64063
November 31,999 32,013 36389.21875 36520.28255
December 31,966 36554.98828

April-June 31,419 35694
2018
45,000
38522
40,000 35694 36520
35659
35,000 30,747 31,419 30,674 32,013
30,000
25,000
20,000
15,000
10,000
5,000
0
Page | 22
BSE 2018
The S&P BSE SENSEX finished the year at an all-time high closing level of 34,057 and the Indian
equity benchmark recorded a 29.56% full-year total return. Indian small-cap stocks outperformed their
mid-cap and large-cap counterparts; the S&P BSE SmallCap index’s 60.80% full-year return is the
highest on our dashboard. The implementation of the widely anticipated Goods and Services Tax
(GST) was well received by market participants this year. An additional reduction in the tax rate on
selected items, combined with an improved outlook for the Indian economy, helped the S&P BSE
Consumer Discretionary Goods and Services to a 55.66% yearly return Among regional equity indices,
the S&P China 500 index posted the highest full-year total return; it rose 35.04%. The S&P Russia
BMI lagged by increasing only 4.48%, one of the lowest annual returns in our dashboard.
February was a challenging month for the S&P BSE SENSEX; the imposition of a capital gains tax on
equity investments tested the Indian equity benchmark at the start of the month .There were few bright
spots to be found in a month of broad-based global equity declines: every S&P BSE sector, every S&P
BSE cap range and nearly every S&P BSE equity strategy fell in February. Excluding inverse
strategies, the S&P BSE IPO index offered the only exception to the rule; it rose 2.84%. Finance was
the worst-performing S&P BSE sector and Financials proved to be the biggest drag on the S&P BSE
SENSEX's monthly total return. It was a challenging month for global equity markets. The S&P BSE
SENSEX fell 3.46%, wiping out the gains made earlier in the quarter Most Indian equity strategies fell
this quarter. The S&P BSE IPO was one of two strategies to gain; its 2.14% total return was beaten
only by the S&P BSE SENSEX Inverse Daily’s 5.79% rise. Enhanced Value’s 9.14% monthly drop put
it firmly in last place. Information Technology was the best-performing S&P BSE sector this quarter;
its 7.42% gain was more than 10% higher than the second-placed Fast Moving Consumer Goods.
Telecom was a notable laggard as it dropped over 20% this quarter. According to analysis, the
SENSEX showed an average of 35,660 for months January, February and March.
While global equity markets were buffeted by fears of a trade war, the S&P BSE SENSEX posted
steady gains in April. India’s equity benchmark rose in 17 of the 21 trading sessions, completing the
month with a 6.65% gain. Every sector contributed positively April hosted gains across the equity
capitalization ranges, although small-caps outperformed their mid-and large-cap counterparts. Bullish
forecasts for Indian GDP growth by the World Bank provided tailwinds. Among S&P BSE Sectors,
Information Technology topped the charts with a whopping 12.13% monthly total return, making it
20.45% this year and 43.96% over the last 12 months. Telcom was the only sector to fall, down 1.80%.
The S&P GSCI posted a 4.45% monthly gain as commodity prices rose. Oil and Aluminum increased
substantially; both posted multi-year highs in April In a challenging month for Indian equities, and
emerging markets more broadly, the S&P BSE SENSEX rose 0.71%. Gains on the last day of May -
and positive contributions from Financials - pushed the equity benchmark into positive territory.
The majority of Indian equity strategies also fell since our last report. The S&P BSE Public Sector
Undertaking (PSU) Index -designed to give exposure to public companies where the Central
Government holds at least 51% - led the way as it rose 0.45%. Commodity prices continued their recent
rise; the S&P GSCI gained 1.92% in May to make it 7.05% so far this quarter. Indian equities faced a
challenging environment this month as trade tensions weighed on global equity markets, contributing to
a rise in risk -off sentiment. However, the S&P BSE SENSEX eked out a 0.50% gain in June, making it
a 7.94% quarterly increase Healthcare led the way among S&P BSE sectors this month, rising 7.71% to
push it into the black for the quarter. Information Technology, last month’s chart-topping sector, was
the only other sector to gain in June; its strong recent performance leaves it with a 16.05% quarterly
Page | 23
total return. According to analysis, the sensex showed an average of 35,694 for months April, May and
June.
Indian equities posted steady gains during July as the country’s strong economic outlook provided
tailwinds for growth. The S&P BSE SENSEX gained 6.36% to finish the month at an all-time high of
37,607. Among S&P BSE sectors, Energy led the way this month with a massive 14.99% increase –
more than double the returns of the second-placed Fast Moving Consumer Goods sector (+7.20%).
Every sector gained; Telecoms brought up the rear with a gain of 1.56%. July was a positive month for
our global equity benchmarks. The S&P Latin America 40 Index led the way with a 12.55% monthly
total return; strong gains in Brazil and Mexico provided tailwinds. But lingering trade tensions weighed
on Asian equities; the S&P Asia 50 Index rose by a paltry 16 basis points.The S&P BSE SENSEX
overcame an emerging market sell-off at the start of the month to post eight new all-time highs in
August. The equity benchmark ended the month with a 2.88% gain.The S&P BSE India 10 Year
Sovereign Bond Index fell this month as the Reserve Bank of India decided to hike interest rates in an
effort to curb inflationary pressures. The hike did not help the rupee; it later fell to historic lows against
the U.S. dollar. August was challenging for the commodity markets; the Dow Jones Commodity Index
fell by nearly 2% as a strengthening U.S. dollar provided headwinds. After closing August at an all-
time high, the S&P BSE SENSEX took a sharp turn downwards in September. India’s equity
benchmark declined 6.21%, its worst monthly performance since February 2016, as fears for exports in
a worsening environment for global trade weighed on the benchmark. The index eked out a 2.63% gain
this quarter In a generally testing month for developing equity markets and currencies, the Indian bond
market also finished with moderate declines. The broad-based S&P BSE India Bond index closed
September down 0.11%, but remains positive (1.04%) for the quarter and year-to-date (1.98%).
The analysis showed an average of 38,523 for the month of July, August and September.
As a result of foreign fund outflows amid a worsening global outlook, the S&P BSE SENSEX posted
a second consecutive monthly decline in October. India's benchmark is now in correction mode, having
fallen more than 11% from its all-time high in August. Rumors that the RBI governor Urjit Patel will
resign added to currency pressures, with the S&P Indian Rupee down 9% year-to-date. After the RBI
left rates unchanged at the beginning of the month, all of our India bond indices posted gains in Octobe
Driven by the slide in oil prices, amid trade tensions and concerns about oversupply and weakness in
global demand, commodities declined in October. The Dow Jones Commodity Index fell 2% and the
S&P GSCI declined 5%.The S&P BSE SENSEX rode the wave of emerging market strength, ending
the month up 5.2%. Financials led the way among S&P BSE sectors with a gain of 6.6%. Energy came
second with 5.7%, while Healthcare brought up the rear, declining 2.7%. The S&P BSE India 10 Year
Sovereign Bond Index gained 2.3% this month as yields ticked down. Despite a rocky December, the
S&P BSE SENSEX managed to finish the year in positive territory (up 7%). This positive performance
came as global equities struggled, with the S&P Global 1200 declining 9% in 2018. December brought
political change in India, as the Governor of the Reserve Bank of India resigned and the BJP lost
ground in state elections Technology led the way among S&P BSE sectors with a gain of 27% in 2018,
while Telecom brought up the rear, declining 39%. The S&P BSE India 10 Year Sovereign Bond Index
gained 3% this month as yields ticked down slightly. 10-year Indian sovereign bond yields have
finished 2018 almost exact where they began (7.39% today versus 7.32% at the end of 2017), even as
inflation-linked bonds declined. The analysis showed an average of 36,520 of sensex for months
October, November and December..
Page | 24
GOLD 2018
The first quarter of the year commenced with domestic gold rates holding at Rs.3,093 per gram on the
1st. Gold rates rose to Rs.3,164 per gram - the highest recorded monthly figure - on the 25th amid
strong global cues. The month came to an end with the precious metal priced at Rs.3,121 per gram on
the 31st with investors banking on the bullion to hedge against inflation concerns. February began with
the yellow metal trading relatively higher at Rs.3,128 per gram as domestic markets tracked a positive
trend in the overseas bullion market. Prices surged to Rs.3,148 per gram on the 3rd following an
increase in domestic demand from local retailers, jewellers and industries. Gold prices rose again to its
monthly high of Rs.3,148 per gram on the 17th and continued trading at the same rate until the 22nd
amid the positive trend overseas. Trading concluded for the month with the precious metal trading firm
at Rs.3,147 per gram on the last day. Trading began with gold trading at Rs.3,147 per gram on the 1st
of March amid positive global cues.Firm trends overseas coupled with steady domestic demand from
local jewellers and retailers led to gold prices surging to Rs.3,148 per gram on the 8th. The rest of the
month saw gold rates holding strong at Rs.3,148 per gram with steady demand from local jewellers,
retailers and industries due to positive global trends.
Gold prices rose as April began, with the metal trading at Rs.3,011 per gram on 1 April, rising to
Rs.3,043 per gram from 4-9 April as local demand was high due to favourable market conditions.
Prices recovered as the month was ending, with gold trading at Rs.3,036 per gram on 26 April. An
increase in overseas demand led to gold trading at Rs.3,048 per gram on 28 April before prices rose to
Rs.3,061 per gram on 30 April to register a 1.66% increase in price Demand for gold dipped in May as
demand was poor ahead of the French presidential elections, with gold prices falling from Rs.3,061 per
gram on 1 May to Rs.2,977 per gram on 9 May. Gold prices rose for the remainder of the month,
trading at Rs.3,046 per gram on 31 May Gold was priced at Rs.3,046 per gram on 1 June as demand
was stable due to a low U.S. dollar rate, though the markets were stable. Markets fluctuated due to
conflicting cues from overseas consumers as demand dipped, with gold priced at Rs.3,053 per gram
from 9-14 June. Prices rose as the month ended, with gold trading at Rs.3,055 per gram on 30 June.
Page | 25
January 33,245 36701.03125
February 34,400 33,695 37172.17969 37540.58333
March 33,440 38748.53906
April 32,197 39487.44922
May 32,538 33,111 40124.96094 39974.82682
June 34,599 40312.07031
July 35,380 40032.41016
August 38,998 38,026 37807.55078 39093.69401
September 39,699 39441.12109
October 38,898 40392.21875
November 39,500 39,166 41163.78906 41121.98958
December 39,099 41809.96094

April-June 33,111 39975
2019
45,000
41122
39975 39094 39,166
40,000 37540 38,026
35,000 33,695 33,111
30,000
25,000
20,000
15,000
10,000
5,000
0
Page | 26
BSE 2019
In the green, supported by gains in April and May. The S&P BSE SENSEX gained 2% on the quarter
after a 0.5% decline in June. All of our broad Indian equity indices finished the month in the red,
lagging behind their Asian counterparts. Small-caps, in particular, struggled; the S&P BSE SmallCap
declined 5%. Among the S&P BSE Sectors, Finance and Information Technology led the way up in
Q2, each gaining 3%. Healthcare lagged on the quarter, declining 11%. The analysis showed an
average of 39,975 of sensex for the months April,May and June.
The S&P BSE SENSEX dropped 5% in July, its worst monthly performance since October 2018.
Small-caps and mid-caps in particular struggled, with the S&P BSE SmallCap and S&P The S&P BSE
SENSEX spent most of January in the red, but finished the month positively with a total return of 0.5%
after unexpectedly dovish remarks.With oil prices surging upwards and global tech companies
reporting better-than-feared earnings so far in January, the Information Technology and Energy sectors
battled for supremacy in the Indian equity markets. The S&P BSE Information Technology Index
ultimately took the prize, finishing the month in pole position with a total return of 8.4%. S&P BSE
SENSEX declined 1% in February, led down by Financials and accompanied by escalating tensions on
the Kashmiri border. The S&P BSE MidCap and S&P BSE SmallCap lagged large caps; both indices
declined by more than 1.5% over the month Despite the 21st Feb announcement of a $7 billion
injection to state-owned banks, the beleaguered S&P BSE Finance continued to underperform and
closed the month with a decline of 1.6%. The S&P BSE Consumer Discretionary Goods and Services
Index was the best performing sector, gaining 1.7% this month. India's benchmark finished March with
a total return of 7.9%, taking the year-to-date return to a positive 7.4%.Among Indian equity sectors,
the S&P BSE Finance sector led in March, gaining 12.3%, while the surge in oil prices helped Energy
to take the top spot for the quarter; the S&P BSE Energy closed the quarter with a total return of 18%.
The S&P BSE MidCap and S&P BSE SmallCap both shared in the fruits of India’s recovery, gaining
8% and 10% respectively. Among equity strategies, dividends were the flavor of the quarter as global
bond yields tracked down; the S&P BSE Dividend Stability index came took the top spot in the first
quarter with a total return of 9.6%. According to the analysis,the months January,February and March
shows an average SENSEX of 37,540.
In the face of rising energy prices, India’s equity markets made a slow start this year but, with the
general election ongoing, the mood has turned decidedly bullish.The S&P BSE SENSEX opened the
month with a new all-time high on the second day of trading, and finished the month with a total return
of 1%. Among Indian equity sectors, the S&P BSE Information Technology sector led in April, gaining
6% and contributing the most to gains in the broad benchmark. The S&P BSE Energy sector took
second place with a 2% gain, while Discretionary took the wooden spoon with a decline of 2%. It was a
good month for newly-listed companies as the S&P BSE IPO index gained 3%; taking the top spot
among our Indian equity strategy indices in April The Indian elections brought a sigh of relief to Prime
Minister Modi, who secured a convincing win for the BJP in the world’s biggest elections.Driven by an
optimistic outlook following the election results, the S&P BSE SENSEX finished May with a rise of
2%, bringing its YTD gains to 10%. Among S&P BSE sectors, Financials and Industrials led the way
in May, gaining 6% and 5% respectively. Energy finished with a decline of 2%, driven by a drop in oil
prices, but was not the worst performing sector; Health Care and Information Technology declined 7%
and 3%, respectively. Despite a weak finish, Indian large-cap equities ended BSE MidCap declining
11% and 8% respectively. The S&P BSE Information Technology was the only S&P BSE Sector to
finish the month in the green, gaining 1%. The S&P BSE Industrials was the sectoral laggard, declining
Page | 27
11%. The S&P BSE SENSEX Inverse Daily Index was one of the few bright spots on our dashboard,
gaining 6%. Broadly, global equity markets struggled in August, as U.S./China trade concerns
combined with fears of slowing global growth to drive a flight to safety and weigh down riskier assets.
Indian equities began the second fiscal quarter on the back foot; all of our broad Indian equities indices
finished August with marginal declines The blue-chip S&P BSE SENSEX declined 0.3% this month,
while the S&P BSE SmallCap and S&P BSE MidCap fell 1.1% and 1.0%, respectively. The S&P BSE
Energy bucked the global trend, leading the way for sectors with a 4% gain, while among our Indian
equity strategy indices, Quality and Momentum shone this month, both also rising 4%. The S&P BSE
SENSEX posted a strong gain in September, soaring in the final weeks after Prime Minister Modi’s
government announced a cut in the corporate tax rate from 30% to 22% to combat weak growth.The
S&P BSE MidCap and S&P BSE SmallCap indices also jumped on the month, with each gaining 5%.
Among the S&P BSE Sectors, Fast Moving Consumer Goods (FCMG) and Energy led the way up in
Q3, each gaining 3.7% and 2.5% respectively. Infrastructure lagged on the quarter, declining 13.8%
According to the analysis,it showed an average of 39,094 for months July, August and September.
Indian equities rallied in October despite lowered growth projections from both the IMF and World
Bank, and reported slowing in both imports and exports. The S&P BSE SENSEX gained 3.9%, pushing
its total 2019 return up to 12.5%. The S&P BSE MidCap and S&P BSE SmallCap indices also jumped
on the month, gaining 5.4% and 3.0%, respectively Among the S&P BSE Sectors, Energy and
Consumer Discretionary Goods & Services led the way up in October, each gaining 8.9% and 6.8%
respectively. Telecom lagged on the month, declining 6.7% Despite month-end data indicating a slump
in economic growth, Indian equities rallied in November. The S&P BSE SENSEX gained 2%, pushing
its total return for 2019 up to 14%. Indian small-caps just about joined the bullish mood, with the S&P
BSE SmallCap finishing the month marginally in the green (it gained 9 basis points). Among S&P BSE
Sectors, Telecom led the way up in November with a whopping 24% total return. Autos and Industrials
pulled up the rear, both declining 4%. Overall, Indian equities took the year in their stride, finishing
firmly in positive territory. India’s S&P BSE SENSEX added 1% in December to complete the year
with a total return of 16%. While larger company stocks soared, smaller Indian companies missed out;
despite rising 6% in the fourth quarter, the S&P BSE MidCap Index declined 2% in 2019. Among
S&P BSE Sectors, Energy and Banks led the way up for the year with returns of 24% and 21%,
respectively. Autos and Metals brought up the rear, both declining 10% According to analysis, the
months October, November and December showed an average of 41,122
Page | 28
GOLD 2019
The gold rate increased at the start of January 2019 as the rupee increased in value in comparison to the
dollar.The share mark dipped in value globally and the metal stood at Rs. 3,219 per gram on 1st
January. It remained the same till 3rd January after which there was a steady increase in the value of
gold for the month. At the end of the month, the price of gold hit its highest point at Rs.3,411 per gram
resulting in a percentage incline of 5.96% On the 1st of February, gold sold at Rs.3,411 per gram as
equity markets remained low and bad economic trends prevailed despite the Federal Reserve indicating
positive trends. Gold rate from the 8th to 19th dipped to Rs.3,398 per gram as investor interest in the
metal declined. The price of gold in the city then remained steady as local offtake increased. However,
as the US dollar gained an edge towards the end of the month, the price of gold declined to Rs.3,439
per gram on 28th February. The month started at a low as the gold rate in Maharashtra declined from
last month as the dollar increased in value. During the same time, equities declined in value as well.
The price of gold at the start of March was recorded at Rs.3,439 per gram. The month ended with gold
being priced at its lowest when it was priced at Rs.3,266 per gram.
Gold rate in India were on a steady rise after opening the month at Rs.3,481 per gram as renewed
economic uncertainty increased its safe-haven appeal. Gold price in India opened at Rs.3,761 per gram
before surging to Rs.3,793 per gram on 13 August as fears over renewed trade tensions. A brief dip in
gold rate to Rs.3,755 per gram on 14 August after the U.S.’ trade concessions to China bolstered
equities, but recession fears boosted bullion demand as gold surged to Rs.3,799 per gram on 15 August.
Gold rate in India opened lower at Rs.3,766 per gram on 19 August as a recovery in equity markets
resulted in a dip in bullion demand. Gold price in India continued to climb on steady local and overseas
cues, opening the week higher at Rs.3,904 per gram before slipping to Rs. 3,875 per gram on 27 August
on profit booking. The possibility of Sino-U.S. talks bolstered equities and raised the dollar, though
monetary stimulus plans and slowing growth saw prices soar to Rs.3,913 per gram on 29 August.
After a period of steady growth, gold price in India opened the week at Rs.3,876 per gram and rose on a
weak rupee and strong overseas cues. Gold rate in India continued their downward slide this week,
opening at Rs.3,842 per gram on reduced retail demand and declining investor interest. Gold price in
India continued their downward slide this week, opening at Rs. 3,807 per gram on reduced retail
demand and declining investor interest. Weak overseas offtake impacted gold price in India, with the
metal trading at Rs.3,791 per gram on 23 September on a falling rupee and lacklustre jeweller demand.
There was a marginal recovery over the weekend as retail sales increased, resulting in gold price ending
the month at Rs.3,799 per gram to record a 1.9% decline in price. After opening at Rs.3,722 per gram,
gold rate in India surged during the week, bolstered by festive demand and a rise in overseas demand
which raised prices.
The gold price in India rose to Rs.3,818 per gram on 3 October. Gold opened the month of October at
Rs.3,722 per gram and saw a gradual positive trend in prices due to a heavy local demand due to the
festive season in the country along with an increased demand overseas. After closing the previous week
at Rs.3,826 per gram, the price of gold opened the 3rd week of the month with a low at Rs.3,822 per
gram due to renewed optimism around the trade talks. In the last week of October, the price of gold was
Rs.3,869 per gram recording a marginal fall in prices after closing the previous session at Rs.3,872 per
gram. Gold prices showed positive signs on 31 October rising to Rs.3,857 per gram as the United States
Federal Reserve cut the interest rates as expected by the investors due to weak economic data. In
November, gold rate in India opened at Rs.3,892 per gram due to trade uncertainties and was set for a
rise in prices for the second continuous week. The price of gold in India was steady on 3 November and
Page | 29
ended the first week of the month at the same price of Rs.3,890 per gram based on strong Chinese data
and positive trend of U.S. jobs..On 6 November, the price of the metal decreased to Rs.3,840 per gram
and increased marginally to Rs.3,860 per gram on 7 November as stocks were paused due to trade
uncertainty. The metal closed at a one-month low of Rs.3,817 per gram. In India, the price of gold saw
a fluctuating trend in the third week of the month. Opening the week at Rs.3,812 per gram, the price of
the metal dipped to Rs.3,806 per gram on 11 November. Gold prices in the country saw a lot of
fluctuations in the fifth and final week of November after opening the week at Rs.3,806 per gram.
Compared to the previous day’s closing price, the rates dipped by Rs.15 for every gram. In India, gold
prices closed the week at Rs.3,828 per gram as no clear indication was provided by either country
regarding the trade deal. Gold’s overall performance was trending downwards due to such reasons. In
India, gold prices stood at Rs.3,906. witnessed a declining trend in the first week of December. The
rates opened the week at Rs.3,906 per gram. Gold started the second week of December at Rs.3,875 per
gram. The rates didn’t see any change in the prices when compared to the previous week’s closing
price. In the country, gold opened the third week of the month at Rs.3,885 per gram. The price of the
metal was holding steady through the previous week due to various global factors. After decreasing by
Rs.10 on 17 December to Rs.3,875 per gram, the metal’s price steadied in the market. On 19
December, the price of gold increased to Rs.3,896 per gram. By the end of the week, gold prices held
steady decreasing marginally to Rs.3,890 per gram and then steadying to Rs.3,896 per gram on 22
December. The metal closed the week at an increased price of Rs.3,901 per gram due to persistent
doubts on the U.S.-China deal. Gold ended the year on high at Rs.31,966 for 10 gm.
Page | 30
Table No. 4.6.1 Monthly Gold and BSE Rate (January – March 2020)
Month Gold rate Average gold rate BSE Average Rate BSE
January 41,270 42,273.87
February 43,585 43,058 41,709.30 41,022.11
March 44,320 39,083.17
Table No. 4.6.2 Quarter wise Gold and BSE Rate (January – March 2020)

January- March 43,058 41,022
Chart No. 4.6.2 Quarter wise Gold and BSE Rate (January – March 2020)
January- March
43,500
43,000
43,058
42,500
42,000
41,500
41,000
41,022
40,500
40,000
Page | 31
BSE 2020
The S&P BSE SENSEX started the year in the red with a decline of 1.3%, driven down by financial
services and commodity-related firms locally, and suffering also from a late-January global sell-off in
equities that followed the emergence of a new virus in China that could limit growth in the world’s
second-largest economy. Larger companies declined, whilst mid-sized and smaller companies
outperformed. The S&P BSE Small Cap and S&P BSE Mid Cap gained 7.1% and 3.3%, respectively.
The S&P BSE IPO index led the way amongst Indian equity strategies, with its 5.5% gain this month
bringing the total return over the last year to 70%. Public sector companies struggled, with the S&P
BSE Public Sector Undertaking (PSU) and S&P BSE Central Public Sector Enterprise (CPSE),
declining 5.8% and 6.4%, respectively. Amongst S&P BSE sectors and industries, Realty and
Telecoms led the way up in January, gaining 10.8% and 5.6%, respectively. Energy and Metals lagged,
declining 7.4% and 9.0%, respectively. Indian equities suffered from the broader global sell-off, as
growing fears of coronavirus’s impact on global growth caused widespread risk-off sentiment and a
flight to safety. The S&P BSE SENSEX declined 5.9% in February, continuing its negative run in
2020. Declines were had across cap ranges and strategies. The large cap S&P BSE 100 and the BSE
SmallCap declined 6.5% and 6.4%, respectively, while Indian smart beta strategies also struggled on
the month. The S&P BSE Enhanced Value in particular declined 12.5% Newly listed companies
offered a bright spot among the sea of red this month; the S&P BSE IPO gained 8.3% in February and
is now up 14.3% in 2020. Most sectors and industries ended the month in negative territory.Industrials
led the way down for sectors, declining 11.3% while the Realty industry slid 15.8%. Telecoms were an
outlier, gaining 0.4% in February.
The BSE Sensex plunged over 2,919 points in its biggest one-day fall in absolute terms as the
coronavirus pandemic wreaked havoc on global markets. After nosediving over 3,204.30 points during
the day, the 30-share index settled 2,919.26 points or 8.18 per cent lower at 32,778.14. Global markets
reeled after the World Health Organization (WHO) termed the coronavirus outbreak as a pandemic, and
expressed deep concern over the “alarming levels of inaction“. US President Donald Trump suspended
all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus.
In line with the bearish trend in global markets, Indian stocks opened at significant lower levels as
investors remained anxious about the economic impact of the coronavirus outbreak, said Narendra
Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi
Shares & Stock Brokers. A selloff across sectors along with panic selling in the broader markets hurt
investor sentiment, he said. On 31st March, 2020, the price of sensex was 39.083. According to
analysis an average sensex is shown of for the month of January, February & March
Page | 32
GOLD 2020
India is the largest consumer of gold in the world, accounting for almost a quarter of the world’s total
consumption. It has, since long, maintained this position and, unlike countries like China, India uses
gold primarily in the form of jewelry and investments. Gold prices opened the new decade in India at a
price of Rs.3,996 per gram with no changes since 31 December 2019. The metal is supposedly set for
its best year till date since 2010 based on multiple global factors. As gold prices have increased by over
19% in 2019, the metal increased to Rs.4,011 per gram on 2 January 2020 as the value of the dollar
dipped in the global market. In the second half of the week, gold prices saw a major dip by Rs.105 per
gram and were priced at Rs.4,106 per gram. In the last week of January, the price of gold opened at
Rs.4,142 per gram increasing marginally from the previous week’s closing price. Due to the outbreak
of the Coronavirus in China, the price of the metal increased through the week due to its safe-haven
appeal. On 30 January, the price of the metal hit its weekly low at Rs.4,116 per gram amidst global
trends showing positive trends. Due to low local demand and investors awaiting the decision by the
United States Federal Reserve, the price of the metal dipped despite increasing widely in the global
markets. On 31 January, the price of the metal increased in India and closed at Rs.4,169 per gram.
In the first week of February, the price of gold opened at Rs.4,169 per gram and fluctuated
throughout. At the beginning of the week, the metal was all set to touch its 5-month high because of the
effect of the Coronavirus on the global economy. The metal also hit its highest price in the month on 4
February at Rs.4,195 per gram. Gold opened the second week of February at Rs.4,148 per gram in the
country. There was no change in the rates of the precious metal when compared to the closing price of
the previous week In the country, the price of the metal opened the last week of the month at Rs.4,211
per gram and held steady on 17 February 2020. Gold prices on 22 February hit the Rs.4,300 per gram
mark and due to safe-haven demand and increased to hit not only the monthly high but also its 7-year
high in the global market. The price of the metal on 23 February was Rs.4,368 per gram in the country
and closed the week at the same price.
In India, gold prices opened the month of March at Rs.4,274 per gram and showed an overall weekly
incline. This was majorly due to the effect of Coronavirus on the economy. The metal’s price was
steady on 2 March at Rs.4,274 per gram. The gold rates increased throughout the week with a lower
risk appetite amongst investors. Gold prices in the country stood at Rs.4,510 per gram on 8 March.
Compared to the closing price of the previous week, there was a drop of Rs.26 per gram in the rates of
the yellow metal. Even though gold prices jumped past the level of $1,700 per ounce the next day in the
international market, the rates remained unchanged in India. On 20 March, with traders getting back to
heavy liquidation of assets, gold prices fell yet again to hit its lowest price in the week at Rs.4,111 per
gram on 20 March. The price of the gold, however, bounced back marginally on the last day of the
week and closed at Rs.4,432per gram in the country.
Page | 33
BSE & Gold Growth Rate 2015 to 2020
Gold Growth BSE Growth

Year Gold Rate BSE Rate
Rate Rate
2015 26,343.50 -6% 29,094.61 -3.10%
2016 28,623.50 8% 29,824.62 2.50%
2017 29,667.50 4% 36,443.98 22.19%
2018 31,438.00 6% 38,989.65 6.98%
2019 35,220.00 12% 41,809.96 7.23%
2020 42,428.00 22% 41,709.30 -1.88%
Gold Growth Rate
50000 25%
22%
45000
43,058.00
20%
40000
35,220.00
15%
35000
31,438.00
29,667.50 12%
30000 28,623.50 Year
26,343.50 10%
Gold Rate
Gold Rate
25000 8%
6%
GoldGrowth Rate
4% 5%
20000 Log. (Year )
Poly. ( GoldGrowth
15000 Rate)
0%
10000
-5%
-6%
5000
0 -10%
1 2 3 4 5 6
2015 TO 2020
Page | 34
Bombay stock exchange
45000 25.00%
22.19% 41,809.96 41,709.30
40000 38,989.65
20.00%
36,443.98
35000
29,824.62
15.00%
30000 29,094.61
10.00%
25000
BSE Rate
Year
7.23%
BSE
20000 6.98%
5.00% BSEGrowth Rate
Poly. ( BSEGrowth Rate)
2.50%
15000
0.00%
10000 -3.10%
-1.88%
-5.00%
5000
0 -10.00%
1 2 3 4 5 6
2015 TO 2020
Page | 35
GOLD & BSE Growth Rate
Gold Growth Rate BSE Growth Rate
2015 2016 2017 2018 2019 2020
The analysis of data of the year 2015 to 2020 it has been seen that the prices of gold has increased from
26,343.50 in 2015 to 42,428 in 2020. In 2015, the growth rate of gold was negative i.e. -6% which
raised till 22% in 2020.On the other hand, the stock prices on BSE also increased from 29,094.61 in
2015 to 41,709.30 in 2020. The growth rate of stock prices on BSE was first negative in 2015 i.e 3.10%
then it became positive from 2016 to 2019 and again turned negative in 2020 to -1.88%.So, from the
above it can be said that gold is a safe and better instrument to invest even if price raises it gives good
returns as compared to other stock instruments.
Page | 36
Findings
 In the year 2015,the analysis of the Bombay stock Exchange Reported that Oil and Gas came
second from the bottom, reflecting the poor performance of commodities including industrial
metals and energy that has continued into the new year.but China as a good excuse to rotate into
Indian equities, while continued slides in the oil price have dampened inflation expectations and
boosted the prospects for consumers and business& In 2015 gold Market rates suffered in the
second half of the year on the back of a weak monsoon, though demand picked up around the
festive and wedding season in October/November. The Government of India also launched new
gold schemes aimed at making use of the estimated 20,000 tonnes of gold lying in private hands
in the country. The schemes have so far received lukewarm response and more efforts in this
direction can be expected in 2016
 In the year 2016, the analysis of the Bombay stock Exchange was globally, with volatility rising
on the back of a more open race in the U.S. election. VIX rose 22% over the month to close last
16.19.Global markets were initially shocked, and then quickly adjusted to the surprise victory of
Donald Trump in the U.S. Presidential elections. In the meantime, continued political intrigue
among the OPEC group of oil-producing nations sent energy prices see-sawing. Indian equity
markets and the SENSEX ended the year growth market 2.50% on the other Gold prices rose as
stocks and currencies fell, trading at Rs.30, 990 Ten gram .Gold prices in December were low
as the country was still reeling from the demonetisation policy.
 In 2017,Indian equities began the year positively: the S&P BSE SENSEX gained 3.88% in
January as nearly every sector gained ground. The S&P BSE SENSEX fell 1.35% this month as
figures showed India’s GDP growth had fallen to a 3-year low at 5.7% in Q2; many attributed
this slowdown to the lingering impact of the goods and services tax (GST). However, the
SENSEX rose 1.60% this quarter and now stands 18.85% higher than at the turn of the year;
gains in July were more than sufficient to offset the more recent declines. Demand for gold rose
in the final week of August due to persistent tensions between the United States and the United
States of America, with gold trading at Rs.3,017 per gram on 28 August. The decline in the
price of gold in India continued as the Fed Reserve meeting offered some sops to industry,
resulting in gold falling to Rs.2,999 per gram.
 In 2018, The S&P BSE SENSEX finished the year at an all-time high closing level of 34,057 and the
Indian equity benchmark recorded a 29.56% full-year total return. Indian small-cap stocks outperformed
their mid-cap and large-cap counterparts; the S&P BSE Small Cap index’s60.80% full-year return is the
highest on our dashboard. The implementation of the widely anticipated Goods and Services Tax (GST)
was well received by market participants this year. An additional reduction in the tax rate on selected
items, combined with an improved outlook for the Indian economy, helped the S&P BSE Consumer
Discretionary Goods and Services to a 55.66% yearly return. As a result of foreign fund outflows amid a
worsening global outlook, the S&P BSE SENSEX posted a second consecutive monthly decline in
October. Trading began with gold trading at Rs.3,147 per gram on the 1st of March amid positive
globalcues.Firm trends overseas coupled with steady domestic demand from local jewellers and retailers
led to gold prices surging to Rs.3,148 per gram on the 8th. The rest of the month saw gold rates holding
strong at Rs.3,148 per gram with steady demand from local jewellers, retailers and industries due to
positive global trends 
 In 2019, The S&P BSE SENSEX spent most of January in the red, but finished the month
positively with a total return of 0.5% after unexpectedly dovish remarks. With oil prices surging
upwards and global tech companies reporting better-than-feared earnings so far in January, the
Information Technology and Energy sectors battled for supremacy in the Indian equity markets.
Page | 37
In the face of rising energy prices, India’s equity markets made a slow start this year but, with
the general election ongoing, the mood has turned decidedly bullish. Gold rate in India were on
a steady rise after opening the month at Rs.3,481 per gram as renewed economic uncertainty
increased its safe-haven appeal. Gold price in India opened at Rs. 3,761 per gram before surging
to Rs.3,793 per gram on 13 August as fears over renewed trade tensions. A brief dip in gold rate
to Rs.3,755 per gram on 14 August after the U.S.’ trade concessions to China bolstered equities,
but recession fears boosted bullion demand as gold surged to Rs.3,799 per gram on 15 August
 In 2020, The S&P BSE SENSEX started the year in the red with a decline of 1.3%, driven down
by financial services and commodity-related firms locally, and suffering also from alate-January
global sell-off in equities that followed the emergence of a new virus in China that could limit
growth in the world’s second-largest economy. Larger companies declined, whilst mid-sized
and smaller companies outperformed. The S&P BSE Small Cap and S&P BSE Mid Cap gained
7.1% and 3.3%, respectively. Most sectors and industries ended the month in negative territory.
Industrials led the way down for sectors, declining 11.3% while the Realty industry slid 15.8%.
Telecoms were an outlier, gaining 0.4% in February. India is the largest consumer of gold in the
world, accounting for almost a quarter of the world’s total consumption. It has, since long,
maintained this position and, unlike countries like China, India uses gold primarily in the form
of jewelry and investments. Gold prices opened the new decade in India at a price of Rs.3,995
per gram with no changes since 31 December 2019. The metal is supposedly set for its best year
till date since 2010 based on multiple global factor.
 As per the analysis of data of the year 2015 to 2020 it can be seen that the prices of gold has
increased from 26,343.50 in 2015 to 42,428 in 2020. In 2015, the growth rate of gold was
negative i.e. -6% which raised till 22% in 2020.On the other hand, the stock prices on BSE also
increased from 29,094.61 in 2015 to 41,709.30 in 2020. The growth rate of stock prices on BSE
was first negative in 2015 i.e 3.10% then it became positive from 2016 to 2019 and again turned
negative in 2020 to -1.88%.So, from the above it can be said that gold is a safe and better
instrument to invest even if price raises it gives good returns as compared to other stock
instruments.
Page | 38
Suggestions
Key Point-
 Gold is Safer as less volatility and better as consistent performer thus, suggest it for investors
with less / average financial literacy, gold has increased in value are almost always coupled
with extreme economic circumstances. These extreme circumstances cause people to lose
faith in their country’s currency and buy a more concrete form of wealth: gold. Gold is seen
to be a good wealth storage tool around the world limited access to the information, Risk
Averse.

 The Prices of share fluctuates at a high rate as compared to that of gold. Investing in shares
especially by people who don’t have much income can prove a bit Riskier. Even if there is a scam
in one company, the whole market gets affected with fall in prices of shares













 

Page | 39
Conclusions
The project covers a comparison between various stocks listed on BSE and gold as a commodity for
investment. It includes prices of stocks and gold from 2015 to 2020. Also, various reasons because of
which there is a fluctuation in the prices of stocks and gold. The prices and growth rate is explained by
charts and graphs. In recent years, it has been seen that gold is becoming an important and safe
commodity for investors to invest their funds. When in the stock market there is a scam of one
company's share not only that company's share is affected also the whole stock market gets affected.
Hence, due to increasing scams, stock market is becoming more and more risky to invest funds. And
thus, gold is becoming a safer investment alternative. Hence, it can be said that gold is a safe
investment alternative than investing in stock Market.
Page | 40
Bibliography
 "Is Gold a Hedge or a Safe Haven? written by Mohd Fahmi Ghazali, Hooi-Hooi Lean and
Zakaria Bahari. Vol No 14 No 2 2013
 "Causal Relationship between Gold Price and Sensex: A Study in Indian Context." written by
Prof. S.P Narang and Raman Preet Singh. March/ April .PP 
 3-13,vol 14
 "Investment in Gold: Trends and Analysis of Indian Stock Market" which is written by Dr.
Sunaina Kanojia and Silky Jain Vol No 14 April PP 3-14
 "A study on gold as safer investment alternative among small and medium investors" written by
Shobha C. V. Vol .5 (Iss 11)November 2017
 "Gold versus stock investment: An econometric analysis." whic h is written by Martin Surya
Mulyadi and Yunita Anwar. Vol 1 Number 1, June 2012 PP 1-7
 https://in.investing.com/commodities/gold-mini-historical-data?end
 https://www.bseindia.com/markets/equity/EQReports/StockPrcHistori.aspx?expandable=6&scri
pcode=512289&flag=sp&Submit=G
 https://www.bankbazaar.com/gold-rate-maharashtra.html
Page | 41

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A DISSERTATION REPORT

IS GOLD A BETTER AND SAFER ASSET THAN SHARES?

AAKASH SANDIP SONI

SAVITRIBAI PHULE PUNE UNIVERSITY

MASTERS IN BUSINESS ADMINISTRATION (MBA)

Progressive Education Society’s

MODERN COLLEGE OF ENGINEERING

1186A, Shivajinagar, Pune 411 005

Name: Aakash Sandip Soni Seat No:

SR.NO CONTENT PAGE

Reasons why the price of gold is high include:

 Physical characteristics: Gold has some phenomenal physical characteristics – especially

Method for collecting Secondary Data:

 Online database information

Month Average Gold rate Average BSE Rate

Average Gold rate Average BSE Rate

Month Average Gold rate Average BSE Rate

Average Gold rate Average BSE Rate

Month Average Gold rate Average BSE Rate

Average Gold rate Average BSE Rate

Month Average Gold rate Average BSE Rate

Average Gold rate Average BSE Rate

Month Average Gold rate Average BSE Rate

35,000 33,695 33,111

Average Gold rate Average BSE Rate

Month Average Gold rate Average BSE Rate

Gold Growth BSE Growth

Gold Growth Rate

22.19% 41,809.96 41,709.30

2015 2016 2017 2018 2019 2020

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