Stock Market Strategy: Should investors buy the dip or turn to gold amid market correction?
The Indian stock market has been witnessing a sharp correction, with benchmark indices Sensex and Nifty 50 declining by 2.4% each so far this year. This downturn has been largely driven by persistent selling by Foreign Portfolio Investors (FPIs), who have pulled out over ₹88,100 crore from the domestic stock market since the start of 2025.
Other key factors weighing on stock market sentiment include the looming threat of a global trade war, rising US Treasury yields, a strengthening US dollar, a weakening rupee, disappointing corporate earnings, and weak domestic economic growth.
Amid this uncertainty, gold prices have surged around 11% year-to-date (YTD), outperforming equities and attracting investors seeking a safe haven.