Sensex Ends 144 Points Lower; FMCG Stocks Outperform

After hitting a record high in August, gold prices have come off by more than 12%. However, on a year-to-date basis, gold is up more than 25%.

Domestic gold and silver prices struggled today as US lawmakers were unable to reach a breakthrough in stimulus talks.

Gold prices for the latest contract on MCX fell 0.6% to Rs 48,935 per 10 grams.

In the previous session, gold prices had slumped 1.8% or Rs 920 per 10 grams while silver had tumbled nearly Rs 1,800 or 2.7% per kg.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

In the latest developments from the IPO space, bread and biscuits maker Mrs Bectors Food Specialities will launch its initial public offer (IPO) on 16 December 2020.

The company is looking to raise Rs 5.4 billion through this issue. The IPO would comprise of a fresh issue of equity shares worth Rs 405.4 million and an offer for sale (OFS) by existing shareholders worth Rs 5 billion.

The issue will remain open for three days till 18 December 2020.

The company has set a price band of Rs 286-288 apiece.

The company will not receive any proceeds from the OFS. The proceeds of the fresh issue will be utilized for financing the project cost towards the expansion of the Rajpura manufacturing facility by establishing a new production line for biscuits.

As per the draft red herring prospectus (DRHP), Mrs Bectors Food Specialities is the largest supplier of buns to quick-service restaurant (QSR) chains such as McDonald's, KFC, Burger King and Carl's Jr.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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