Commodities
Nifty-Gold Ratio Dips to 1.6: Is an Equity Rebound on the Horizon?
The Nifty-Gold ratio has narrowed to 1.6, indicating that Indian equities may be oversold and poised for a rebound.
Domestic spot gold prices have risen 13% year-to-date compared to a 6% fall in the equity benchmark Nifty 50.
Historically, whenever the ratio has fallen below 2.5, the benchmark index has witnessed a healthy upside.
Experts believe that this ratio is better viewed as a measure of relative performance rather than a valuation signal.