New Delhi, Nov. 12 -- The major investing trend that has dominated the year 2025 is the sharp underperformance of equities compared to precious metals like gold and silver. At a time when gold prices are trading with over 50% returns this year, the benchmark Sensex has seen just 6% rise.

Against this backdrop, the Sensex-to-Gold ratio has dipped well below its long-term average of 1.02x to 0.70x. The ratio measures the relative value of equities versus gold. And past such instances have coincided with periods when equities outperform gold over subsequent years, according to an analysis by Bajaj Finserv AMC.

The signs of this trend are likely unfolding in the market, as gold has corrected sharply from its peak of Rs.1.32 lakh per gram to...