A Study on Relationship Between Indian Gold Market and Index

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.