Titan shares up by more than 2% today

Titan’s shares are gaining today. At 1:15 p.m. IST, 9^th December, 2025, its shares price is up by 2.44%, trading at Rs 3,859. Nifty 50 index is down by 0.32% at this time. Titan’s stock is the top gainer at Nifty 50 today, at this time.

Will gold price see some decline if Federal Reserve cuts down interest rate tomorrow?

US Federal Reserve will announce its monetary policy decision tomorrow, 10^th December. There is wide expectation that it will go for a 25 basis point (0.25%) interest rate cut. Historically, gold prices and interest rates have an inverse relationship. When interest rates go down, price of gold tends to go up. When interest rates go up, price of gold tends to go down. So if US Federal Reserve cuts interest rate tomorrow, then many expect that gold prices will go down. This will be beneficial for Titan. Around 90% of the revenues of Titan come from its jewelry business. Its jewelry business is housed under Tanishq, Zoya, CarterLane and Mia brands. Lower gold prices lower the cost of raw material for its jewelry business.

Negative correlation between gold prices and interest rates have not held in the past 1 year

But it needs to be noted that the negative correlation between gold prices and interest rates have not held in the past 1 year. Gold prices continued to rise in spite of increases in interest rates by central banks. This, because investors kept on buying gold due to high geopolitical risks and economic uncertainty.

Interest rate differential between US and India will remain same even if Fed cuts interest rate by 25 basis points

Another expectation of investors may be that if Federal Reserve goes for an interest rate cut, then dollar may weaken somewhat against the rupee. Gold price globally is quoted in dollars. A decline in the value of dollar against the rupee may bring down gold price in rupee terms. But RBI already cut down interest rate by 25 basis points last week. If Federal Reserve also goes for a 25 basis point interest rate cut tomorrow, then also the interest rate differential between the two countries will remain the same. So any significant weakening of dollar against the rupee because of interest rate cut by US central bank is unlikely.

Continued high gold prices are making people buy more of physical gold for investment purpose. They are buying more of gold bars and gold coins. Tanishq also sells gold bars and coins. So an uptick in gold prices is not entirely unfavorable for Titan.

Titan’s shares have gained more than 18% this year

Titan’s shares have gained 18.60% year-to-date (YTD) in 2025. Nifty 50 index has gained 8.99% in this period. Titan’s stock has outperformed the Nifty 50 index by more than 9% this year.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source : NSE, Titan