
Earnings growth may be tepid next 2 years but equities offer better returns than gold: Siddharth Bothra
, Fund Manager,
Ambit Asset Management
, says gold and silver are viewed differently from other commodities due to gold's historical role as a hedge against market uncertainty. However, gold has outperformed expectations, even surpassing some top-performing markets over the long term. While central banks are increasing gold reserves, suggesting concerns about the global financial sector, equities may offer better returns than gold or silver moving forward.
What is your view on the market?
Siddharth Bothra:
Our view on the market is that if you look at the next two years, the
earnings growth
looks a bit tepid, more in the early double digits, and valuations across the market – be it largecaps, midcaps, or smallcaps are above their long-term averages. So, the return outlook for the next two-three years looks muted and as this market is coming on the back of a couple of very strong years, going forward it is going to be very stock specific and that is one advantage that India has.
Explore courses from Top Institutes in
Select a Course Category
others
Data Science
Operations Management
Public Policy
Finance
Data Analytics
Technology
Artificial Intelligence
Management
PGDM
Others
Healthcare
Digital Marketing
MBA
MCA
Design Thinking
Project Management
Leadership
Cybersecurity
Degree
healthcare
Product Management
CXO
Data Science
Skills you'll gain:
Duration:
16 Weeks
Indian School of Business
CERT - ISB Cybersecurity for Leaders Program India
Starts on
undefined
Get Details
There are good opportunities across various sectors. We had a very easy time over the last three-four years, when money-making was relatively easy in the stock market and the market was very broad-based. Our house view is that over the next two-three years, the market is going to move from a very broad-based market to a more concentrated one, a move more towards quality, more towards stock specific. So, it is going to be a difficult market and we need to be very stock specific to earn more than the outlook we have on the returns given the muted earnings growth and valuations being high.
What are your sector takes and your sector approach? Looking at the churn going on sectorally, which are the laggards according to you and which are the ones which you would bank on for maybe two to three quarters now? I know you will be talking about the long-term as far as your strategy is concerned, but there has to be some sectors you are betting really high on and some that are out of flavour and trend.
Siddharth Bothra:
While the broader outlook remains muted, there are not many sector-specific standouts. but the sectors we would look forward to, include the consumption sector. It has not done that well over the last one-two years. Now, there seems to be many green shoots which suggest that this sector could come back whether it be the moves from the government side on the tax side or whether it be the upcoming pay commission opportunity and all these things suggest that the consumption theme could be something to look at with a one- to two-year perspective.
The other segment where we would be positive on is industrials. We believe that while private capex could still be a couple of quarters away, in the industrial segment, there are a lot of stock specific opportunities. Many companies seem to be benefiting in a big way from the advent of AI by the fact that increasing use of software and technology is getting embedded in most of the industries. So, companies which have technological advantage, which are dominant in those particular segments, could see opportunities there.
Live Events
You Might Also Like:
Mihir Vora on where to look for opportunities in the broader market
So, consumption, industrials, and the broader BFSI still looks fairly attractive. These are the two-three sectors other than pharma where we like some of the domestic plays. So, these are the three-four sectors we would be focusing on.
What is your view on the real estate sector? It was the top sectoral gainer yesterday. How do you see this sector because it is once again linked to the economy?
Siddharth Bothra:
Real estate is a rate sensitive sector and stands to benefit from the recent rate cuts and also the loosening liquidity environment that we are seeing. In that sense, real estate is not a sector where you can take a very long-term view, but within that, I believe it looks attractive and certain things have also changed in real estate sectors over the last few years. Increasingly consolidations are happening, some of the companies have now become more broad-based like earlier the value was coming more from future growth and now there are some good opportunities where valuations could be justified by cash flows.
This is a sector where one needs to be still very stock specific and the view has to be more short- to medium-term because this is still not a sector where I would take a very long-term call. But again, this is a sector where one needs to be very stock specific and within that, there are some stocks which stand out and even we have looked at them though we do not own any of them.
What is your view on gold and silver?Considering the rally in these metals, one cannot think about not having them in the portfolio and for that reason you need to have at least 10% to 15% exposure in gold and silver. Is this the time for one to go heavy in gold or silver? At a portfolio level, you have always guided in favour of diversification.
Siddharth Bothra:
Gold and silver I would look separately from other commodities because overall outlook on the commodity including crude is weak in a way but gold has been a complete contrast. Right from the beginning of the career we have always thought of gold as a hedge. So whenever markets looked very upbeat or when markets were weak, you would look for gold or silver as a contrary bet.
You Might Also Like:
Buy on dips; expect a 1,000-point rally over next 30-45 days: Rahul Sharma
But in the last few years, it has almost turned out to be the other way, like everything is going up. In fact, if you look at gold on a 20-25-year basis, it has even beaten some of the best markets. So, I am a bit baffled here because the inherent thinking on gold other than the fact that now more and more central banks are looking to increase their hedge and have more gold, which in a way shows lesser confidence in the global financial sector, is a very broad theme.
But other than that, the view on gold has always been that this is an asset class which does not produce cash flows and hence for investors, other than as some kind of a diversification, should be avoided. Other than that broad view that central banks are now increasingly looking to add more and more gold, I would believe that you would probably make better returns in equity from here on rather than being in gold or even silver.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
an hour ago
- Time of India
Zoology enters DU's top 3 undergraduate courses for first time, overtakes English
BSc (Hons) Zoology has emerged as one of Delhi University's most sought-after programmes, breaking into the top three for the first time, as per TOI. DU's admission data for 2025 shows BCom (Hons) remains the clear favourite with 48,336 first-preference applications. But Zoology (Hons) surged past English to take the third spot with 12,722 top-choice applications, a sharp rise from last year, when it didn't even feature in the top five. Political Science (Hons) held on to second place with 15,295 first-choice applications. Explore courses from Top Institutes in Please select course: Select a Course Category Leadership Digital Marketing PGDM Operations Management Management Product Management Data Analytics Degree Project Management MBA Finance Artificial Intelligence MCA Healthcare healthcare Cybersecurity Others Public Policy Data Science Design Thinking Data Science Technology others CXO Skills you'll gain: Duration: 18 Weeks 109820388 Strategic Marketing for Leaders: Leveraging AI for Growth Starts on undefined Get Details Skills you'll gain: Strategic Thinking & Planning Competitive Advantage & Market Positioning Strategic Leadership & Decision-Making Change Management & Organizational Transformation Duration: 1 Year IIM Kozhikode IIMK Advanced Strategic Management Programme Starts on Mar 30, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode SEPO - IIMK CEO Programme India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK-Women Leadership Programme INDIA Starts on undefined Get Details Skills you'll gain: Financial Accounting & Analysis Financial Instruments & Markets Corporate Finance & Valuation Investment Management & Banking Duration: 12 Months IIM Kozhikode IIMK Professional Certificate in Financial Analysis and Financial Management Starts on Mar 30, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Advanced Strategic Management Programme Starts on undefined Get Details Skills you'll gain: Duration: 12 Weeks IIM Kozhikode CERT-IIMK EPIS Async India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Indore Executive Programme in Business Management Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML SLP India Starts on undefined Get Details Skills you'll gain: Critical Thinking & Decision-Making Skills Power of Emerging Technologies Innovation and Drive Organizational Change Fostering a Culture of Innovation Duration: 9 Months MIT xPRO MIT Technology Leadership and Innovation Starts on May 14, 2024 Get Details Skills you'll gain: Opportunities & Outlining Plans to use AI & ML Applying Data-Driven Business Innovation Best Practices Changing Culture to Integrate AI-Enabled Technologies Ethics, Privacy and Regulations in AI & ML Duration: 20 Weeks Indian School of Business ISB Leadership in AI Starts on May 14, 2024 Get Details Skills you'll gain: Duration: 22 Weeks Indian School of Business SEPO - ISB Venture Capital & Private Equity India Starts on undefined Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Senior Management Programme Starts on undefined Get Details At the same time, data from Ambedkar University Delhi (AUD) points to an evolving response to the new four-year undergraduate structure. Only about half the students in the first cohort have opted to continue into the seventh semester, highlighting growing selectivity and possibly fatigue with the extended format. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Struggling With Belly Fat? Try This at Home Home Fitness Hack Shop Now Undo Back at DU, the momentum behind Zoology reflects more than just changing academic trends. According to Professor Rita Singh, head of the department, this is a generational shift. 'There are compelling reasons why students are choosing zoology more now than before. Zoology offers a wholesome understanding of life, whether it is biodiversity, drug design or toxicology,' she said. 'Conceptual clarity is key, and zoology provides that foundation, right from how receptors work to understanding environmental toxins like endocrine disruptors. This core knowledge gives the subject a strong edge.' Live Events She pointed to the Covid pandemic as a pivotal moment. 'During the pandemic, students realised that the disciplines addressing immunity, vaccination, genetics and PCR were all rooted in zoology. Now, those interested in setting up diagnostics startups or small biotech ventures are turning to this subject. It offers interdisciplinary strength, hands-on experience and opens doors across research, healthcare and industry.' The integration of zoology with the National Education Policy's four-year framework is also helping, Singh added. With more scope for undergraduate research and interdisciplinary learning, students are now approaching the subject through the lenses of physiology, environmental science, biotechnology and medicine. 'It is not just about animal biodiversity anymore… it offers a truly multidisciplinary future.' For many, that future is personal. 'My interest in zoology and wildlife began with books and deepened through environment-related videos on YouTube. I have always admired those who speak up for the voiceless, people committed to protecting animals and nature,' said Shreya Singh, a final-year BSc (Hons) Zoology student. 'What draws me most is the hands-on fieldwork which resonates with my belief that work should be both meaningful and fulfilling. There are many ways to serve the environment, but the most powerful path is one that brings both purpose and joy.' The career appeal of the subject is also growing. Dr Sanjiv Mullick of Dyal Singh College points out that many of zoology's sub-fields are rich in entrepreneurial potential. 'Zoology has highly applied branches like economic zoology, fisheries, sericulture, apiculture. These are fertile grounds for entrepreneurship. Many students today want to launch their own ventures in fishery science or silk and honeybee production.' He added that environmental awareness and employability are pushing the trend forward. 'Students are much more conscious of issues like climate change and biodiversity loss. They are eager to contribute through wildlife management and conservation,' he said. The academic pipeline is strong too. After graduation, many zoology students move into MSc Biotechnology at top institutions like IITs, NITs, JNU and BHU, with several progressing into research and biotech industries. 'New fields such as computational biology, bioinformatics, genomics and AI in life sciences are especially attractive,' Mullick said. 'Students are joining R&D and becoming scientists with impressive salary packages.' With postgraduate intake in DU's zoology department expected to rise from the current 130 students, university officials believe the subject's trajectory is just beginning. The spike in demand reflects a deeper shift: students are gravitating toward disciplines that combine intellectual rigour, real-world relevance, and a sense of mission. Zoology, it seems, is hitting that sweet spot. With inputs from TOI


Time of India
an hour ago
- Time of India
Gold price crashes: Should you bet on low gold rate and invest? Here is what experts are saying
Gold prices crashed on Thursday as easing trade tensions increased risk sentiment and weighed on demand for safe-haven assets. Spot gold was down 0.6 per cent at $3,362.59 per ounce after shedding 1.3 per cent in the previous session. U.S. gold futures dropped 0.9 per cent to $3,367.30. Following this week's trade deal between the U.S. and Japan, two European diplomats said on Wednesday the European Union and the U.S. are also edging toward a trade deal that could include a 15 per cent U.S. baseline tariff on EU goods and exemptions. Gold Price Predictions Explore courses from Top Institutes in Please select course: Select a Course Category Product Management Data Analytics healthcare Digital Marketing Data Science Management CXO Cybersecurity Degree MBA Healthcare Public Policy Project Management Finance Artificial Intelligence Leadership MCA others Operations Management Design Thinking Data Science Others PGDM Technology Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Gold is down this morning due to the positive news flow around global trade... this is reducing downside risks for global growth and supports the prevailing risk-on mood in financial markets, said Carsten Menke, an analyst at Julius Baer. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Remember Him? Sit Down Before You See What He Looks Like Now 33 Bridges Undo The trade expectations meanwhile drove risk sentiment in the global financial markets propelling stocks to fresh record highs. "Demand from safe-haven seekers has cooled while central bank buying stays sound, even though not as strong as earlier in the year. We still expect gold to move higher in the longer term," Menke said. Live Events A safe-haven asset during times of economic uncertainties, gold also tends to do well in a low-interest rate environment. U.S. President Donald Trump will visit the Federal Reserve on Thursday, the White House said, which could intensify tensions between the administration and the central bank. The Fed's policy meeting, scheduled for July 29-30, is expected to maintain interest rates within their current range. Investors anticipate the central bank will resume rate cuts in September. Elsewhere, the European Central Bank is also expected to keep interest rates steady on Thursday. Spot silver slipped 0.7 per cent to $39.02 per ounce, while palladium dipped 2 per cent to $1,252.70. Platinum fell 2.5 per cent to $1,376.45, its lowest in more than a week. FAQs Q1. What are gold prices? A1. Spot gold was down 0.6 per cent at $3,362.59 per ounce after shedding 1.3 per cent in the previous session. U.S. gold futures dropped 0.9 per cent to $3,367.30. Q2. What are silver, palladium, platinum prices? A2. Spot silver slipped 0.7 per cent to $39.02 per ounce, while palladium dipped 2 per cent to $1,252.70. Platinum fell 2.5 per cent to $1,376.45, its lowest in more than a week.


Time of India
an hour ago
- Time of India
MCX issues clarification on trading disruption triggered by technical glitch
The Multi Commodity Exchange ( MCX ) has issued an official statement explaining the reason behind Wednesday morning's unexpected trading halt , attributing the disruption to repetitive database issues that delayed overnight clearing system processes. 'The delayed trading at the exchange was caused by repetitive database issues, which delayed overnight clearing systems-related processes. The issue has been examined, and corrective measures have been taken. Trading has since returned to normal, and volumes were back to typical levels over the course of the day,' the exchange said in an official statement. Explore courses from Top Institutes in Please select course: Select a Course Category CXO Digital Marketing others Cybersecurity Healthcare Technology Others Degree Finance Public Policy healthcare MBA Design Thinking Management MCA Artificial Intelligence Data Analytics Product Management Data Science Leadership Data Science PGDM Operations Management Project Management Skills you'll gain: Technology Strategy & Innovation Emerging Technologies & Digital Transformation Leadership in Technology Management Cybersecurity & Risk Management Duration: 24 Weeks Indian School of Business ISB Chief Technology Officer Starts on Jun 28, 2024 Get Details Skills you'll gain: Operations Strategy for Business Excellence Organizational Transformation Corporate Communication & Crisis Management Capstone Project Presentation Duration: 11 Months IIM Lucknow Chief Operations Officer Programme Starts on Jun 30, 2024 Get Details Skills you'll gain: Digital Strategy Development Expertise Emerging Technologies & Digital Trends Data-driven Decision Making Leadership in the Digital Age Duration: 40 Weeks Indian School of Business ISB Chief Digital Officer Starts on Jun 30, 2024 Get Details Skills you'll gain: Customer-Centricity & Brand Strategy Product Marketing, Distribution, & Analytics Digital Strategies & Innovation Skills Leadership Insights & AI Integration Expertise Duration: 10 Months IIM Kozhikode IIMK Chief Marketing and Growth Officer Starts on Apr 7, 2024 Get Details The clarification came after trading was suspended for over an hour at the start of the day, prompting concern among market participants. Additional monitoring protocols have been activated to detect similar anomalies in the future. 'A full assessment is underway, and all required actions will be taken,' the statement added, noting that the exchange regrets the inconvenience caused to its members and investors. Trading halted for over an hour The disruption began just before market opening. MCX, which was scheduled to begin trading at 9:00 am, initially announced that operations would resume by 9:45 am. However, the halt continued, and the exchange later revised the expected resumption time to 10:10 am. Ultimately, normal trading resumed at 10:17 am. Previous incidents and platform migration This is not the first time MCX has faced technology-related operational setbacks. In February 2024, the exchange suffered a major glitch that led to a four-hour trading suspension. That disruption was widely believed to be linked to MCX's technology transition from 63 Moons to Tata Consultancy Services (TCS). The migration to the new platform was a significant undertaking and, at the time, had raised concerns about system stability. MCX's role in the commodity derivatives market MCX is India's largest commodity derivatives exchange, offering trading across a broad range of contracts in bullion, industrial metals, energy, and agricultural commodities. The exchange plays a pivotal role in facilitating risk management and price discovery in the country's commodity markets. MCX has assured market participants that it remains committed to maintaining robust systems and transparent communications as part of its operational priorities.