Gold losing its shine, equities have further to fall

Gold prices remain close to record highs in rupee terms, but the latest numbers on gold import volumes should assuage any concerns over the impact on the external position. Meanwhile, the Sensex has dropped by nearly 2% this week, even as equities in most other Asian economies have rallied. In all, Indian equities are now almost 9% off their all-time high from early June. But we still expect a further drop this year.