Correlation of Gold and Indian stock market

Market behavior over the last 20 years (2004-2023):


Key Findings:


1. **Directional Movement:**

- Same direction: ~55% of months (approximately 132 months out of 240)

- Opposite direction: ~45% of months (approximately 108 months out of 240)


2. **Average Monthly Returns:**

- Gold: +0.6%

- Indian Markets: +0.8%


3. **Volatility (Standard Deviation):**

- Gold: ~3.2%

- Indian Markets: ~4.5%


4. **Approximate Breakdown by Market Conditions:**

- Both Markets Up: ~35% of months

- Both Markets Down: ~20% of months

- Gold Up/India Down: ~25% of months

- Gold Down/India Up: ~20% of months



Comments

Post a Comment

Popular posts from this blog

An easy plan to finance graduation and higher education of low income muslim students

Image
  Proposal for Muslim Children in India (Sharia-Compliant Model) to create a corpus of 3-4 lakh. Let's study how the US “Trump Accounts” + Dell Family Gift Help Children Through Compounding The new US programme—popularly called “Trump Accounts” —creates small, long-term investment accounts for children. Every eligible child receives $1,000 from the US Treasury , and with Michael & Susan Dell’s additional pledge, another $250 for children under age 10. The key idea is simple: Start early → Invest consistently → Let compounding work for decades. Michael and Susan Dell are one of America’s most prominent business families. Michael Dell founded Dell Technologies , one of the world’s largest computer companies, starting it from his college dorm room. Together, the Dell family has spent decades funding education, children’s health, and opportunity-building programs globally. Their $6.25 billion gift is one of the largest in modern US history dedicated to children. But the rea...
Read more

Nifty 50 and Sensex Targets for the Next 3–5 Years (2026–2030) and sector insights.

Nifty 50 and Sensex Targets for the Next 3–5 Years (2026–2030). Sector-wise insights added.  As of November 23, 2025, India's benchmark indices—Nifty 50 and BSE Sensex—have experienced volatility this year, with the Nifty closing around 24,800–25,000 and the Sensex near 82,000–83,000, down from September peaks amid FII outflows and global uncertainties. Reputable institutions like Goldman Sachs, Morgan Stanley, ICICI Direct, Motilal Oswal, Jefferies, Citi, and HSBC have issued updated forecasts, driven by expectations of 13–19% annual earnings growth (FY26–28), GDP expansion to 7%, reflationary policies, and domestic inflows absorbing supply pressures. These projections assume stable macros (e.g., oil below $80/barrel, RBI rate cuts) but note risks like US recession or trade tensions. Longer-term targets (beyond 2026) are scarcer and more optimistic, often from Indian brokerages, projecting 12–15% CAGR based on structural reforms and $5–6 trillion GDP by 2030. Below is a summary ...
Read more

How to categorize Large, Mid, and Small-Cap stocks

  Large-Cap : Ranking:  Top 100 companies by market cap. Market Cap (Approx):  Over ₹20,000 Crore (or higher, depending on market). Characteristics:  Well-established, stable, lower risk, often "blue-chip" stocks, steady returns. Mid-Cap : Ranking:  Companies ranked 101st to 250th by market cap. Market Cap (Approx):  Between ₹5,000 Cr and ₹20,000 Cr. Characteristics:  Higher growth potential than large-caps, moderate risk, "rising stars". Small-Cap : Ranking:  Companies ranked 251st and beyond by market cap. Market Cap (Approx):  Below ₹5,000 Crore (or lower). Characteristics:  High risk, high reward, early growth stage, volatile, best for aggressive investors.   Ref https://support.zerodha.com/category/trading-and-markets/trading-faqs/trading-categories-and-groups/articles/large-mid-and-small-cap
Read more