Nifty Gold Ratio at 1.6: What is it and will the market rebound?

The Nifty Gold Ratio has dropped to 1.6, which usually can signal hopes of recovery in the equity market. The Nifty 50–gold ratio measures the relative movement of the domestic stock market and gold. It indicates Indian stocks could be in an oversold position.

Kolkata: Spot gold Domestic spot gold has risen 13% this year, while the Nifty 50 has fallen nearly 6%. Historically, stock markets have seen a rally when the ratio falls below 2.5. Experts predict Nifty is likely to reach 25,000 to 25,200. The ratio is significant since it measures the performance of the stock market to gold. It has declined to 1.6. This slide has triggered debate about whether the stock market might have reached the threshold of a rally. Domestic spot gold has risen nearly 13% this year, while the Nifty 50 has declined nearly 6%. Therefore, stocks have underperformed gold. Experts believe that at current levels, there’s room for a recovery in equities.

Based on the closing price of August 10, Nifty 50 was trading........

© News9Live