Diwali 2025: Market gurus share mantras! How to approach stock market, gold & silver now? Nilesh Shah chats with Anil Singhvi

This Diwali, the festive mood is returning to the markets, and with it comes hope for wealth creation. In a special conversation with Zee Business Managing Editor and veteran market expert Anil Singhvi, Nilesh Shah, MD and CEO of Kotak Mahindra AMC, shared his thoughts on market trends, investments, and what investors can expect over the next year.

Shah started by noting that the Indian economy is showing strong performance, and government measures have put money directly into the hands of taxpayers and consumers.

“The government has put Rs 1 lakh crore per year back into taxpayers’ pockets, and through GST rebates, bottom-of-the-pyramid consumers will see nearly Rs 2 lakh crore over the next year,” he said. Lower interest rates will also put approximately Rs 90,000–Rs 1 lakh crore into borrowers’ hands.

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“All this liquidity will be spent or invested, and that is why expectations for this Diwali are high,” he added.

Stock Market Outlook

On equity returns, Shah expects moderate gains over the next year. “The broad market is likely to see returns aligned with earnings growth—low double digits—driven by sectors such as banking, financial services, and consumer-related businesses,” he explained.

Key sectors to watch include automobiles, consumer durables, healthcare, tourism, and home improvement, all of which will benefit from rising domestic consumption during the festive season.

FPIs vs DIIs

Despite the upbeat sentiment among domestic investors, a “tug of war” continues between foreign portfolio investors (FPIs) and local participants.

FPIs remain cautious due to global concerns such as US tariffs and moderate earnings growth over the past six quarters.

However, Shah emphasised that domestic investors’ confidence is strong, supported by record inflows into mutual funds.

“While FPIs are selling, local investors continue to invest, reflecting trust in India’s earnings growth story,” he said.

Nilesh Shah on Gold & Silver

When it comes to gold and silver, Shah remains bullish. “Gold is still a good buy due to central bank purchases globally, and silver’s industrial demand supports its potential,” he noted.

Investors should consider ETFs to avoid high premiums on physical bullion. Regarding silver, Kotak AMC has temporarily stopped fund-of-fund investments due to pricing premiums, but the long-term outlook remains positive.

Fixed-Income & Risk Factors

Fixed-income investments are also expected to deliver decent returns as interest rates gradually fall. “RBI has opened the door for rate cuts, and with global pressures on the Fed, debt instruments should provide mid-single-digit returns,” Shah said.

On potential risks, Shah highlighted geopolitical tensions, global protectionism, and domestic regulatory burdens as areas to watch.