AN INVESTIGATION INTO THE DYNAMIC RELATIONSHIP BETWEEN GOLD PRICES AND STOCK MARKET INDICES (NIFTY AND SENSEX)

Abstract

The objective of the research project is to find the relationship between gold prices and stock exchange indices (NIFTY and SENSEX). Secondary data is used for the preparation of this project. The project has been divided into six parts, the first chapter deals with introduction of NIFTY, SENSEX and gold, the second chapter is about review of literature, while the third chapter notifies about research methodology being used i.e., descriptive research design. The fourth chapter cites with the various sources which were used for finding data for this research as well as the analysis techniques i.e., correlation and regression analysis used on the collective data and other findings through descriptive research. The fifth chapter states conclusion which can be drawn after conducting this extensive research. The findings after doing the research can be drawn as follows: That a positive correlation has been detected in the gold prices and market movements and gold being the independent factor affects both NIFTY and SENSEX with 34.2% and 38.1% respectively.