GOLD PRICES AND NIFTY – UNRAVELLING OF AN INTRICATELY INTERWOVEN NEXUS.

With the ever changing financial architecture prevalent in the economy and opening up of new vistas of financial engineering highlighting the financial inclusion and education schemes coupled with introduction of new financial instruments, India has been able to widen the net of investments either domestic or foreign direct. The scope of investment by individuals though hovers around safe avenues such as gold, the increasing trend of investment in stock markets cannot be ruled out. However the euphoria and dysphoria associated with up rises and down falls in stock market prices, whether it is consequent to global recessionary factors or domestic political and economic scenario, often pulls or drives away investors to or from the stock markets, especially in the short run. Besides the influence of macroeconomic factors on stock prices, the influence of gold prices on stock prices has spurred the inquisitiveness of researchers all over the world.