Global Markets
Home›Global Markets›India›Nifty-to-gold ratio falls to 1.6, signaling potential…
Nifty-to-gold ratio falls to 1.6, signaling potential equities rebound
Domestic spot gold is up 13% year to date, while the Nifty 50 has fallen 6% over the same period, narrowing the gap between stocks and bullion to 1.6 as of Aug. 10.
LiveMint Markets reports India’s Nifty-to-gold ratio has narrowed to 1.6, down from levels that typically indicated stronger stock performance relative to bullion. The ratio, which tracks the relative movement of the domestic equity benchmark and gold, is calculated using the Nifty’s Aug. 10 close of 24,584 and spot gold prices of ₹1,50,208 per 10 grams.
The outlet said the narrowing ratio has drawn attention because historically the Nifty 50 has tended to see upside when the ratio falls below 2.5. Still, experts cautioned the metric should be treated as a read on relative performance rather than a precise timing tool for when stocks will outperform gold.
According to LiveMint Markets, gold’s strength has been supported by safe-haven demand and growing expectations of a low-interest-rate scenario, while the Nifty has traded in a narrow range amid geopolitical risks, foreign capital outflows, and an earnings growth versus valuation mismatch.
Industry experts also framed the move as more consistent with rotation than a full reversal. Vishnu Kant Upadhyay of Master Capital Services said extreme readings may favor equities but are not a timing indicator, and SAMCO Securities’ Apurva Sheth said the ratio decline over the last two years is tied largely to weaker equity performance rather than expectations that gold must drop.
Latest closeGold $4,448.60 ▲2.5%