This paper examines the complex interrelationship between India's gold market and its primary stock indices, the BSE Sensex and Nifty 50. Gold has long been a fundamental component of Indian investment culture and serves as a hedge against economic volatility, while equities support contemporary portfolio expansion. Utilizing daily data from 2020 to 2025, this study applies various analytical techniques, including descriptive statistics, Pearson correlation, regression analysis, Z-tests, and ARIMA forecasts, to elucidate the interactions between gold prices and stock indices in India's dynamic financial landscape. The findings underscore gold's unique function as a diversifier and safe-haven asset, exhibiting only a marginal direct influence on equity market fluctuations. The paper concludes with a discussion of the policy and investment implications derived from this analysis.
Ranganath et al. (Mon,) studied this question.