The domestic equity markets experienced a mixed session today, with the benchmark indices struggling amid renewed concerns over U.S. President Donald Trump’s proposed 25% tariff threat. The NSE Nifty 50 ended the day slightly lower by 26 points or 0.11%, closing at 22,906.75. Meanwhile, the BSE Sensex declined by 222.76 points or 0.29%, settling at 75,716.42.
However, despite the overall downtrend in large-cap stocks, the midcap and smallcap indices saw robust buying interest. The Nifty Midcap 100 outperformed significantly, surging by 647.90 points or 1.28%, closing at 51,175.15. This divergence suggests that investors are looking beyond large-cap stocks and favoring opportunities in the broader market segments.
Banking and Financial Stocks Under Pressure
The banking and financial services sector bore the brunt of the sell-off, with the Nifty Bank closing 0.48% lower at 49,334.55 and the Nifty Financial Services index dropping 0.75% to 23,281.40. However, PSU bank stocks remained resilient and bucked the trend, trading higher as investors found value in these stocks amidst market uncertainty.
Gold ETFs Shine Amid Market Volatility
For those looking at safer investment options, Gold Exchange Traded Funds (ETFs) have emerged as an attractive avenue. Over the past year, Gold ETFs have delivered impressive returns of up to 40%, driven by global economic uncertainty, U.S. trade tariff tensions, and inflation concerns. Inflows into Gold ETFs have surged 486% on a monthly basis, reflecting growing investor interest in the asset class.
Top Performing Gold ETFs (1-Year Returns)
Given these stellar returns, investors seeking safe-haven assets amidst global market uncertainty may consider allocating a portion of their portfolio to Gold ETFs.
How Investors Can Profit Amid Market Volatility
While the broader market remains under pressure due to geopolitical and trade-related concerns, the resilience shown by midcaps and smallcaps signals that selective stock picking can still yield positive results. Meanwhile, with gold prices continuing to surge, Gold ETFs remain a compelling option for those looking to hedge against market volatility.
Going forward, market participants will keep a close watch on further developments regarding U.S. trade policies and their impact on global markets. Investors should remain cautious, adopt a diversified approach, and focus on sectors that exhibit strong fundamentals and growth potential.
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