New Delhi, March 31 -- The Nifty 50-gold ratio-a key indicator that tracks the relative movement of equities and gold and offers clues about their near-term trajectory-has narrowed further to 1.5. This suggests that equities may be oversold and could be poised for a rebound.

Considering Nifty's level and gold rate in India on March 30, the Nifty-to-gold ratio has declined further to 1.5. Historically, whenever this ratio falls below 2.5, the market benchmark sees a healthy upside.

While the movement of gold and equities depends on various macroeconomic and other factors, the Nifty-gold ratio analysis is a factor that market participants might find difficult to ignore.

According to experts, the narrowing ratio of Nifty and gold shows th...