Market Sentiment - The CNN Money Fear and Greed index showed a decline in overall market sentiment, remaining in the "Greed" zone with a reading of 61.7, down from 62.3 [5] - U.S. stocks settled lower, with the Nasdaq Composite falling more than 200 points and the S&P 500 ending a three-day winning streak [1] Economic Indicators - The S&P Global U.S. Composite PMI slowed to 53.6 in September from 54.6 in August, indicating softer growth in services and manufacturing [2] - The U.S. current account deficit decreased by 42.9% to $251.3 billion in the second quarter [2] Sector Performance - Most sectors on the S&P 500 closed positively, with energy, real estate, and utilities stocks showing the biggest gains [3] - Information technology and consumer discretionary stocks closed lower, bucking the overall market trend [3] Company Earnings - Investors are awaiting earnings results from Cintas Corp., Thor Industries Inc., and KB Home [4]

New Zealand’s current account deficit has narrowed dramatically after a downward revision to imports because of more low-value parcels arriving from e-commerce retailers like Temu. https://t.co/tMUKd7fezC ...

South Africa’s current account deficit widened by more than expected in the second quarter https://t.co/wEULN6CCYc ...

Current Account Balance - India's current account deficit reached $2.4 billion in the April-June quarter [1]

Canada’s current account deficit reached the widest on record in the second quarter as the country’s exports to the US dropped because of the trade dispute. https://t.co/E6ioemfPDU ...

Investment Rating - The report maintains a Neutral rating on Titan due to demand uncertainty in FY26E caused by elevated gold prices and rich valuation [5][41]. Core Insights - UBS's Basic Materials team forecasts gold prices to rise to US$3,500 in 2026, driven by tariff uncertainty, weak growth, high inflation, and geopolitical risks [2][9]. - India's gold demand is expected to moderate to approximately 725 tonnes in FY26, a 7% year-on-year decline, before recovering to 800 tonnes in FY27 as household consumption stabilizes [4][23]. - Indian households hold the largest stock of gold globally, estimated at 25,000 tonnes, valued at around US$2.4 trillion, which is 56% of FY26 nominal GDP [3][13]. Summary by Sections Gold Price Forecast - Gold prices are projected to increase significantly, with annual averages expected to reach US$3,500 in 2026, reflecting a 23% increase from previous estimates [12]. Consumer Demand for Gold - Consumer demand for gold in India is anticipated to soften in FY26, particularly in jewellery, which constitutes 70% of total demand, expected to decline by 5-10% year-on-year [4][23]. - Retail investment demand remains strong, with a notable increase in gold bars and coins, driven by gold's performance as a safe-haven asset [20]. Economic Context - India's net gold imports are projected to remain high at US$55 billion to US$60 billion in FY26/27, accounting for 1.2% of GDP, despite a manageable current account deficit [40]. - The report highlights that the upcoming pay boost of approximately US$55 billion could support household consumption and stabilize gold demand [39][23]. Gold Mobilization Efforts - Policy initiatives aimed at mobilizing gold for productive uses have seen limited success, with households primarily using gold as collateral for loans [42][45]. - The Gold Monetization Scheme and Sovereign Gold Bonds have not achieved significant participation, leading to a discontinuation of some programs [44][45]. Company-Specific Insights - Titan is expected to pursue aggressive network expansion to capture market share as the market transitions from unorganised to organised [5][41]. - The report notes that while Titan's long-term proposition is favorable, the current demand uncertainty warrants a Neutral rating [5][41].