📊 Nifty-Gold Ratio at Depressed Levels — What It Means for Indian Investors
The Nifty-gold ratio — a key indicator comparing equity performance with gold — has fallen to depressed levels as gold rallies far more strongly than Indian stocks. Historically, such extremes often occur when investors shift into defensive assets like gold and away from equities.
Key Facts:
• Over the past year, gold has surged ~70%, while the Nifty 50 returned only ~10.5%, pushing the ratio lower.
• A depressed ratio signals heightened defensive positioning — investors preferring safe-haven gold over stocks.
• Technical studies suggest the ratio could test key support ranges (e.g., ~5.50–4.85) before potential reversal.
Expert Insight:
Historically, when the Nifty-gold ratio hits low levels, it has sometimes preceded a rebound in equities as market risk appetite returns. Stabilisation or reversal — driven by improving earnings, policy support, or better growth visibility — may signal equities becoming attractive again relative to gold.
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