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20 Things to Know Before the Stock Market Opens

Before the stock market opens, the biggest question in every investor and trader’s mind is which direction will the market go today? The activity during the opening hour often sets the tone for the rest of the session. In such a situation, “things to know before market opens” i.e. important information before the market opens acts as a guide for you.

In this blog, we will understand 20 important things that will help you make better decisions, identify the right opportunities and avoid unwanted risks.

The 20 Things to Know Before Market Opens

Global & Domestic Cues (Macro Factors)

1. Overnight US Market Performance

The movement of US indices such as Dow Jones, Nasdaq and S&P 500 has a direct impact on the Indian market. If the US markets have closed higher at night, the possibility of a positive opening in the Indian market increases. At the same time, the trend of tech-heavy Nasdaq has a greater impact on IT and technology stocks. Therefore, it is important to look at the charts and closing levels of these indices first thing in the morning.

2. Asian & European Market Trends

Before the Indian market opens, Asian indices (Nikkei, Hang Seng, Kospi) and GIFT Nifty give early indications. GIFT Nifty is often used to guess the direction of Nifty. European markets usually have an impact in the afternoon, but if there is any big news (such as ECB policy) in the morning, its effect can also be seen in the early hours.

3. Currency Movements (USD-INR)

The movement of dollar and rupee directly affects IT, pharma and import-export companies. Importing companies benefit when rupee strengthens, while weak rupee supports exporting IT and pharma sectors. By looking at the opening of USD-INR in the morning, you can guess which sectors would be better to take interest in.

4. Crude Oil Prices

Crude oil is important for the Indian economy because we import most of the oil. The increase in the price of crude oil increases the cost of transport and aviation companies and puts pressure on inflation. At the same time, a decrease in price provides relief to these sectors. Be sure to check the price of Brent crude and WTI every morning.

5. Bond Yields & Interest Rates

The US 10-year Treasury yield and Indian government bond yield reflect the mood of foreign investors. If the yields are going too high, then money may flow out of the equity market. At the same time, RBI or Fed rate signals are also worth paying attention to before the market opens.

6. Government & RBI Announcements

It is important to take a look at government policies, tax changes, budget updates or any fresh notifications from RBI in the morning. These announcements can have a big impact on sectors (such as banking, infrastructure, auto).

Market-Specific Indicators (Technical and Data Points)

7. GIFT Nifty & Pre-Open Indicators

GIFT Nifty is a mirror of the opening mood of the Indian Nifty. Also, the pre-open session of NSE between 9:00-9:15 indicates the initial direction of the market. If a stock shows unusual moves in the pre-open, then there is a possibility of volume throughout the day.

8. FIIs vs. DIIs Data

It is important to look at the previous day’s buying and selling data of foreign institutional investors (FIIs) and domestic institutional investors (DIIs) in the morning. If FIIs have made heavy purchases, then the trend is considered positive. On the other hand, their selling often brings pressure in the market.

9. Corporate Earnings Announcements

In the result season, the quarterly results of companies can change the direction of the day. If the result of a company is better than expected, then that stock can see a rise. On the contrary, there is a decline in disappointing results.

10. Bulk & Block Deals

If an unusual block deal or bulk deal has taken place in a stock on the previous day, then it indicates the interest of institutional investors in it. Such stocks can remain active even the next morning.

11. Insider Activity / Promoter Pledging

If the promoters are selling or pledging shares, then it can be a warning for investors. On the other hand, insider buying indicates trust in a company. Therefore, it is important to see NSE/BSE updates.

12. Keep an eye on technical levels

Before the market opens, write down the support and resistance levels of Nifty, Bank Nifty and the stocks you are keeping an eye on. This will give you a clear idea of where it would be right to buy and where to exit. Entry without knowing the level often leads to mistakes based on emotions.

News & Events That Can Move Markets

13. Big news and geopolitical events

Sometimes a big international event like election results, war or a new decision by oil producing countries changes the mood of the entire market. It is important to catch such news early in the morning, as it can suddenly shake both sectors and indices.

New policies or rules of the government, such as subsidies on electric vehicles or approval from abroad to pharma companies, directly affect the stocks of the same sector. If you are trading in that sector, then these updates should not be ignored.

15. Company announcements

News of a company’s merger, acquisition, dividend or new investment can bring a big move at market opening. Therefore, keep the companies from which such announcements are expected in your watchlist.

16. Impact of economic data

Reports like inflation (CPI), industrial production (IIP), GDP or US job data can change the trend of the entire market. Especially on the days when the data is released, they have a direct impact on the opening and volatility of that day.

17. Analyst reports

In the morning, reports of brokerage houses or big funds come in which a stock is given a rating of “Buy” or “Sell”. Many times, a rise or fall is seen in small stocks on the basis of these reports. Therefore, it is beneficial to look at them before the beginning of the day.

Personal Preparation & Trading Psychology

18. Finalize your watchlist

Every morning, decide which 4–5 stocks you will focus on. Trying to track too many stocks often distracts you and you miss out on opportunities. A focused watchlist will help you trade smartly.

19. Check Risk Management Rules

Decide stop-loss, position size and capital allocation for every trade in advance. This prevents big losses.

20. Mental preparation and discipline

The most important thing is to calm your mind before the market starts. If you trade in panic, greed or haste, the chances of loss increase. It is better to decide your strategy in advance and stick to it. In the hustle and bustle of the day, only the trader succeeds who is patient, follows the rules and takes every decision thoughtfully.

Why is pre-market preparation important?

Controlling emotions : When you trade without preparation in the morning, decisions are often taken in haste or out of fear and greed. A pre-market checklist keeps you calm and disciplined.
Understanding global cues : The trend of the US and Asian markets often influences the mood of the Indian market. Therefore, it is important to keep an eye on GIFT Nifty and foreign indices.
Important data and news : Crude oil, dollar-rupee rate, bond yields and fresh economic announcements play an important role in deciding the direction of the day.
Identifying technical levels : Knowing the support-resistance of nifty, bank nifty or stocks in advance can help you avoid wrong entries.
Right order strategy : There is less liquidity in the pre-market, so it is safe to use limit orders instead of market orders.

Tools & Resources for Pre-Market Research

1. Official Websites (NSE & BSE)

The most reliable and reliable way to view pre-market data is through the official websites of NSE and BSE. Here you get important details like index levels, pre-open session information, corporate announcements and block/bulk deals. Since these updates come directly from the exchange, it is considered safe and important to trust them.

2. Pocketful App and Web

Pocketful is an all-in-one tool for pre-market analysis. Here you can easily:

Check the fundamentals of any company
See top gainer and top loser stocks
Analyze sector-wise performance
Follow live charts and trends
Also get important financial news

This gives you a clear understanding of which sector is strong and which stocks are under pressure. Pocketful proves to be useful for everyone, from new investors to professional traders.

3. Popular Financial Portals

Portals like Moneycontrol, Investing.com and TradingView are quite popular among traders and investors. On these platforms, you get features like charting tools, technical analysis, data from international markets and live price movements. You can also easily track different stocks and sectors by creating your watchlist.

Common Mistakes Traders Make Before Market Opens

Before the market opens, traders often make mistakes that have a big impact on the day’s performance. If these things are not taken care of, then despite the right analysis, there can be losses. Let’s know some common mistakes that are often seen:

Blindly trusting news headlines : Taking trades by just reading the morning headlines sometimes proves to be risky. News often shows short-term sentiments, while the real trend is understood through technical and fundamental analysis.
Over-depending on GIFT Nifty and global signals : Asian markets or GIFT Nifty can help in indicating the trend, but domestic factors like RBI policies, FII-DII flow and local news have a greater impact on the Indian market. It is wrong to create positions based only on global signals.
Taking entries without risk management : The most common mistake is to trade without setting a stop-loss or paying attention to position sizing. Without risk management, one wrong move can wipe out your entire capital.
Ignoring trading psychology : Decisions made in haste, overconfidence or fear are often detrimental. A calm mind and discipline are the most important weapons in the market.
Giving more importance to discipline than prediction : No one can predict the exact market move. Successful traders are those who constantly focus on discipline, proper planning and risk control not just prediction.

Conclusion

To be successful in the stock market, preparation is equally important not just during trading but also before the market opens. If you keep an eye on global trends, sector movements, top gainers-losers and the latest financial news, your decisions become even stronger. Correct information and preparation is the real strength of a good investor. So start every day before the market opens by keeping these points in mind and choose the path of smart investment.

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5	What is a good rule for investing in stocks?

Frequently Asked Questions (FAQs)

What should I check before the market opens?
Make sure to check pre-open data, global market moves and sector conditions.
How does pre-market data help traders?
It helps to understand the initial trend and mood of the stocks.
Can Pocketful help in pre-market research?
Yes, top gainers/losers, charts and sector analysis are easily available in Pocketful.
Should I rely only on GIFT Nifty before the market opens?
No, GIFT Nifty gives signals but looks at domestic factors as well.
What mistakes should I avoid before the market opens?
Hastiness, not doing risk management and relying only on news.

September 18, 2025

10 Best Indicators for Swing Trading 2025

Swing trading is one of the most Best trading strategies in the stock market, particularly among retail traders and part-time investors. Contrasting with day trading, where you pay attention to the markets continuously, swing trading allows traders to hold positions for several days to a few weeks. This timeframe provides enough flexibility to conduct research, analyze setups, make informed decisions, and capture price movements as they unfold in short- to medium-term swings.

However, luck is not enough to succeed in swing trading. You require a toolkit of good technical tools that can assist you in the determination of the right entry and exit points. That is where the swing trading indicators are needed. These technical tools help traders interpret market behavior, identify trends, and manage risk effectively.

In this post, we’ll break down the 10 best technical indicators for swing trading that can help you improve your strategy and increase your chances of success.

Top 10 Swing Trading Indicators Every Smart Trader Should Know

In swing trading timing is everything and accuracy is what sets profitable traders apart. Whether you are just starting out or already an experienced trader the right indicators can help you gauge market momentum, identify potential trend reversals, and execute buy and sell decisions with confidence.

Here are the 10 most effective swing trading indicators that every trader should master to improve consistency and precision in their trades.

1. Moving Averages (SMA & EMA)

The moving averages are the trend-following indicators that smooth the price movement by eliminating the short-term fluctuations.

Simple Moving Average (SMA) embodies the average price over a particular period of time.
The Exponential Moving average (EMA) places more importance on recent price levels and thus it is more sensitive to new trends.

Swing traders often identify short-term and medium-term trends using the 20-day and 50-day Exponential Moving Averages (EMA). One of the common buy signals identified with this indicator is a crossover, such as when the 20-day EMA rises above the 50-day EMA.

Why it matters: Moving averages help confirm the direction of the trend. It serves as dynamic support or resistance levels.

2. Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price movements on a scale from 0 to 100.

If the RSI is over 70, it could mean that a stock is overbought.
If the RSI is below 30, it could be oversold.

As one of the most widely used swing trading indicators, the RSI is particularly useful for spotting potential reversals in price action.

Pro tip: Watch for divergence between RSI and price. For example, if the price makes a new high but RSI does not, it can be a strong signal of an upcoming reversal.

3. MACD (Moving Average Convergence Divergence)

MACD helps traders spot changes in the strength, direction, and momentum of a trend.

A bullish crossover occurs when the MACD line crosses above the signal line.
A bearish crossover happens when the MACD line drops below the signal line.

MACD is particularly effective in trending markets, making it a must-have in your swing trading toolkit.

4. Bollinger Bands

Bollinger Bands are built in using the form of two outer bands that are formed at a level of one or more standard deviations above and below a central line, which usually averages 20-day simple moving average.

When the price touches the upper band, it may be overbought.
If it hits the lower band, it might be oversold.

In swing trading, Bollinger Bands are used to anticipate price reversals and periods of volatility contraction or expansion.

Bonus: A “squeeze” in the bands often precedes a breakout—watch for it!

5. Stochastic Oscillator

This momentum indicator compares a stock’s closing price to its price range over a specific period.

Readings above 80 = overbought.
Readings below 20 = oversold.

When used together with support/resistance levels, swing traders time their trade with it. The indicator works best in the market conditions of sideways moving or range-bound.

6. Volume

While not a standalone indicator, volume is essential in confirming the strength of a price move.

Increasing volume on a breakout = strong signal.
Decreasing volume = weak or false breakout.

Volume surges often come before big price movements; it is a powerful tool for searching for swing trade opportunities.

Tip: Pair volume with MACD or RSI for better trade confirmation.

7. Fibonacci Retracement

According to the Fibonacci sequence, this instrument will be used to determine possible retracement levels prior to a stock resuming its initial direction.

Common Fibonacci levels:

38.2%
50%
61.8%

These levels are support or resistance. They are used by swing traders to strategize entry after a reversal of a trending market.

8. Average True Range (ATR)

ATR measures market volatility by averaging the range between the high and low of a stock over a set period.

High ATR = high volatility.
Low ATR = low volatility.

Swing traders also use ATR to determine where to put stop-loss and whether that stock has sufficient price movement to make it worth taking.

9. Parabolic SAR (Stop and Reverse)

The Parabolic SAR appears as dots above or below the price chart.

Dots below the price indicate a bullish trend.
Dots above the price show a bearish trend.

This indicator helps swing traders lock in profits and set trailing stops.

Pro tip: Combine it with EMA or MACD for clearer signals.

10. Pivot Points

Pivot points can be a support level or a resistance level, which is computed using the previous day’s high, low, and close.

The pivot point (P) is the average of high, low, and close.
Support (S1, S2) and resistance (R1, R2) levels are calculated from it.

Traders use these levels to predict price movement and potential reversal zones during the next session or week.

Conclusion

There is no single perfect indicator for swing trading. The most successful traders often combine two or three indicators to filter out market noise, confirm signals, and improve risk management. By using the right mix of tools you can make more informed decisions and reduce risk whether you are new to swing trading or refining your current strategy.

With Pocketful you gain access to live market data, advanced technical analysis, and proven trading strategies tested by experienced traders. Whether you are a beginner building confidence or an experienced trader seeking an edge, PocketFul is your trusted partner for smarter investing.

Start trading smarter—sign up today.

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5	Top Indicators Used By Intraday Traders In Scalping

Frequently Asked Questions (FAQs)

What is the most accurate indicator for swing trading?
No particular indicator may be called the most exact one, yet RSI, MACD, and moving averages may be taken as the most accurate together. By using a combination, there is increased accuracy in the overall accuracy.
How many indicators should I use in swing trading?
The best would be 2 to 3 complementary indicators; one to capture the trend (such as EMA), another one to capture momentum (such as RSI), and a last one capturing volatility or confirmation (such as ATR or volume).
Can I swing trade using just RSI?
RSI can be applied separately, but when other indicators, such as the moving averages or Bollinger Bands, are applied, it works better. When it is used independently, it increases the chances of false signals.
Are technical indicators better than fundamental analysis in swing trading?
In swing trading, it usually works better to use technical indicators because it is the short-term price action that matters. Nevertheless, earnings reports and news are also part of the strategies of some traders.
What’s the best timeframe for swing trading indicators?
Swing traders primarily utilize 4-hour and daily charts. These intervals are chosen to combine signal clarity with a reduction in market noise.

September 18, 2025

Sovereign Gold Bonds vs. Gold ETF: Which is a Better Investment?

Indians have always had a special place in their hearts for gold, whether it’s for weddings, festivals, or to have a safety net when things are uncertain. You do not need to keep heavy jewellery or gold coins in a vault to invest these days. You can enjoy the benefits of gold without having to store it in real life with contemporary options like Sovereign Gold Bonds (SGBs) and Gold Exchange-Traded Funds (ETFs). The two options are both tied to gold prices, but they work in very different ways. For example, the way you make money, how they are taxed, and how easy it is to buy and sell them are all different.

In today’s blog, we will learn about the pros and cons of each option, as well as the taxation, so you can choose the one that works best for your investment style.

What are Sovereign Gold Bonds?

Sovereign Gold Bonds, or SGBs, are an effective and simple way to invest in gold without having to buy it. You can trust SGBs completely because the government gives them out through the Reserve Bank of India.

You don’t have to keep gold at home or in a safe; instead, you buy these bonds that keep track of the price of gold. So, when the price of gold goes up, the value of your investment goes up too.

Read More: What is Sovereign Gold Bonds?

What are Gold ETFs

Gold Exchange-Traded Funds, or ETFs for simple terms, are an easy way to invest in gold without having to buy and hold the precious metal.

Consider it this way: you buy “units” of gold from the stock market rather than storing gold coins or jewellery at home. Its price fluctuates in line with the market price of gold, and each unit usually corresponds to one gram of gold.

Gold ETFs are appealing for the following reasons;

They are supported by real gold, which is stored in vaults and is extremely pure (often 99.5% or more).

bought and sold like shares; all you need is a trading account and a demat account.

Unlike jewellery, you get exactly what you see, so there are no manufacturing fees or purity concerns.

Like stocks, prices fluctuate continuously.

Transparent and regulated; managed by mutual fund firms under SEBI’s supervision.

Table of Differences between Sovereign Gold Bonds & Gold ETFs

Feature	Sovereign Gold Bonds (SGBs)	Gold ETFs
About	SGBs are government-issued bonds that are linked to the price of gold, so you get the benefit of gold price movements without holding physical gold.	Gold ETFs are exchange-traded funds that aim to match the market price of gold and can be bought or sold just like shares.
Backed by	They are backed by the Government of India and the prevailing market price of gold.	They are backed by physical gold of high purity, safely stored in secure vaults.
Form	You receive a digital certificate; there’s no physical gold involved.	You hold them in your demat account in the form of ETF units.
Minimum Investment	You can start with as little as 1 gram of gold.	You can start with 1 unit, which is usually equal to 1 gram of gold.
Liquidity	You can sell them on the stock exchange, but trading volumes are often lower, so selling instantly at the best price might not always be possible. They work best if you hold till maturity.	You can buy or sell anytime during market hours, and liquidity is generally better than SGBs.
Returns	Your returns come from any increase in the gold price, plus an extra 2.5% interest each year (which is taxable).	Your returns come purely from changes in the gold price; there’s no extra interest.
Tax on Maturity	If you hold till maturity (8 years), any profit you make is completely tax-free.	There is no tax exemption at maturity; gains are taxed under capital gains rules.
Interest	You earn 2.5% interest per year, paid every six months. This interest is taxable.	No interest is paid — your only gain is from the gold price.
Best For	Great for long-term investors who can hold till maturity and enjoy tax-free gains plus interest along the way.	Ideal for those who want flexibility and the ability to enter or exit anytime without a long lock-in.

Advantages of Investing in Sovereign Gold Bonds

Some of the advantages of investing in SBGs is given below:

Gains on maturity that are tax-free – Any profit you make from the redemption of your SGBs is fully exempt from capital gains tax if you hold them until they mature, which is 8 years.

Additional income each year – You receive 2.5% interest on your investment each year, which is paid every six months. In addition, the price of gold has increased.

Do not be concerned about storage – Since your holdings are digitally stored and supported by the Indian government, there is no need for lockers or safes.

High purity by default – You do not need to worry about verifying purity or quality because you are not holding actual gold.

Government-backed – The Government of India guarantees the principal and interest payments, which makes them extremely safe.

Advantages of Investing in Gold ETFs

Advantages of investing in gold ETFs is given below:

No problems with storage – You do not need to be concerned about home safety, insurance, or lockers. The investment account keeps your gold safe.

High purity is assured – You know exactly what you’re getting because it’s typically 24 carat or 99.5% gold.

Simple to buy and sell – You can enter or exit at any time during market hours because they are traded on the stock exchange just like shares.

No manufacturing or waste fees – Unlike jewellery, you only pay for the actual value of the gold, not additional expenses.

Transparent pricing – There are no unexpected costs because the price is determined in accordance with the gold market rate.

Diversification – Gold helps balance your portfolio because it frequently moves differently from stocks and bonds.

Risks & Limitations of Sovereign Gold Bonds & Gold ETFs

GOLD ETFs

Volatility of Gold Prices – Short-term fluctuations in gold prices can cause losses if you sell during a drop in prices.

No Interest Income – Gold ETFs, in contrast to SGBs, do not pay interest; instead, your returns are centred on changes in the price of gold.

Tax on Sale – There is no unique tax-free maturity benefit; gains are always taxed when sold.

Changes in Liquidity – Extreme market conditions can increase bid-ask spreads, which could marginally lower your selling price, even though ETFs usually are liquid.

Annual Costs – ETFs’ small annual expense ratio gradually reduces returns.

No option for physical gold – Real gold cannot be delivered; it is only an investment in paper.

Timing Trap in the Market – Some investors attempt to time their buys and sells because ETFs trade like shares, which, if done incorrectly, can reduce returns.

Sovereign Gold Bonds

Dependency of Gold Prices – Even with the 2.5% annual interest, a decline in gold can lower your returns because SGB values fluctuate along with gold prices.

Loss of Tax Benefit if Sold Early – If you sell before maturity, you lose the special tax-free benefit, and your gains will be subject to taxes.

Low Liquidity in the Secondary Market – Finding buyers may not always be simple, and you might need to sell in the secondary market for less.

High-Risk Secondary Market Buys – Although there isn’t an expense ratio, purchasing SGBs at a premium on the secondary market may result in overspending.

No Delivery of Gold in Physical Form – Instead of actual gold, you get cash at maturity that is equal to the gold’s value.

Extended Maturity Time – SGBs have an 8-year maturity, and the only ways to exit early are through an RBI buyback or an exchange sale after 5 years.

Price Differences in Market Transactions – The RBI sets the issue price, but secondary market prices are subject to supply and demand in addition to the market value of gold.

Taxation – Sovereign Gold Bonds & Gold ETFs

Gold ETFs

The profit is considered short-term and subject to your standard income tax slab rate if you sell within a year.

Holding for more than a year is considered long-term and is subject to a flat 12.5% tax rate; indexation benefits are no longer available.

Gold ETFs are without interest; the only source of your return is changes in the price of gold.

SGBs, or Sovereign Gold Bonds

The main benefit is that any profit you make upon redemption is completely tax-free if you hold until maturity, that is, eight years.

Additionally, you receive 2.5% interest annually, which is paid every six months. However, this interest is subject to slab rate taxation as “Income from Other Sources.”

If you sell your SGB on the secondary market before it matures:

Short-term gains are taxed at the slab rate if they are held for less than a year.
Long-term gains are taxed at a rate of 12.5% (without indexation) after being held for more than 12 months.

Conclusion

SGBs are a great choice if you want to invest for a long time because they pay you interest regularly and tax-free gains when they mature. Gold exchange-traded funds (ETFs) are the best choice if you want to buy or sell at any time during market hours while enjoying flexibility. Which option is ideal for you will depend on your investment objectives. Either way, both are much better than leaving gold jewellery in a locker, since here, your gold is working for you.

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Frequently Asked Questions (FAQs)

What is the lock-in period for SGBs?
SGBs have an 8-year maturity, with an exit option from the 5th year onwards.
Can I trade SGBs before maturity?
Yes, they can be sold on stock exchanges, but liquidity may be low.
Do Gold ETFs give interest?
No, Gold ETFs only track gold prices and don’t pay any interest.
How much interest do SGBs offer?
SGBs offer 2.5% per annum on the initial investment, paid semi-annually.
Are SGB returns tax-free?
Yes, capital gains on SGBs at maturity are tax-free for individuals.

September 17, 2025

Open Interest: Meaning, Functionality & Importance

In the stock market, price and volume tell you what is happening around. Where price tells you how a company is performing, the volume suggests how many people are interested in the company. But there is one more term that holds an equal importance and should be known to you. This is called open interest.

It tells you who’s still in the game. If you trade in futures or options, open interest is a key metric you can’t afford to ignore. It tracks how many contracts are still active. This allows you to explore the actual situation or picture of the market.

But there is more to it. So, let us explore the concept of open interest in the guide over here and see how it helps.

What is Open Interest?

Open Interest is the total number of outstanding derivative contracts, such as futures or options, that are currently active in the market. These contracts have not been closed, settled, or expired. It represents the number of ongoing positions that traders are holding.

When a new buyer and seller enter a contract, open interest increases. If either party exits by closing their position, open interest decreases. By checking this number, traders can understand the value of participation in the specific contract.

Where traders’ volume only focuses on the number of transactions in a day, the open interest goes a step ahead. It shows you the number of the contracts that are actually open at the end of the day. This does not change with every trade. But when you create a new contract or close an existing one, there will be a change.

To understand this, here is a simple example to follow.

Say, the open interest is rising, and prices are also rising. This means that the traders are entering long positions. This now supports the trend. Now, if the prices rise but the open interest falls, then traders are closing some of the older positions. They are not creating new ones here, which means the trend is now weak.

Features of Open Interest

Reflects active market positions: Open interest shows how many contracts are still live and held by traders.
Changes only with creation or closure: It increases with new contracts and decreases when positions are closed.
Used to confirm trends: A rising open interest alongside price movement indicates strength in the trend.
Helps track market participation: Higher open interest suggests more engagement from traders and investors.
Applies to derivatives only: This metric is relevant to futures and options contracts. This is not regular stock trading.

How Does Open Interest Work?

To understand the working of the open interest, here is a simple working mechanism. It is clear that the open interest changes only when some new positions are added and old ones are closed.

To break this down, here is a clear and simple situation.

Say, there are two trades Mr. X and Mr. Y.

Now, Mr. X is willing to buy one Nifty futures contract. Mr. Y is willing to sell the same. Now, one contract option is open. The open interest is now 1.

Further, Mr. X sells this contract to Mr. Z. Still, the open interest stays at 1. Why? Well, this is because one trader is moving out of the trade and a new one is entering. So, the number of active people in trade is still the same.

However, if Mr. X and Mr. Y both close their positions completely and there is no third person in trade, then the open interest will fall to 0.

This shows that open interest reflects the number of existing contracts, not the number of trades.

The value is updated at the end of each trading day. You can see this data on the exchange website or your trading platform. For options, open interest at specific strike prices can also hint at support and resistance zones based on where the most contracts are active.

How to Interpret Open Interest in Trading

Open interest allows the traders to understand market sentiment, confirm trends, and detect possible reversals. Here are some of the key interpretations that you can get from the same.

1. Rising Open Interest with Rising Prices

This is typically viewed as a strong bullish signal. It shows that there is an inflow of money and people are looking for long positions. This is a good time, and price and open interest will both rise. This shows that there is an upward trend, which is great.

2. Rising Open Interest with Falling Prices

This combination is often interpreted as bearish sentiment. Traders are opening new short positions, betting that prices will continue to decline. The increase in open interest shows fresh participation supporting the downtrend.

3. Falling Open Interest with Rising Prices

Here, the rise in price is not supported by new positions. This can indicate short covering, where traders who had short positions are now exiting. While prices are going up, the falling open interest warns that the trend may lack sustainability.

4. Falling Open Interest with Falling Prices

This setup usually means traders are closing existing short positions. This is most likely a sign of a down trend in the market. It may point to market exhaustion. Here, the sellers are stepping aside, and a bottom could be near.

An important point to note here is that these are not fixed. These are just indications, and so solely acting based on them is not right.

Strategies Using Open Interest for Trading

Open interest can enhance decision-making across different trading styles. It helps to understand the market and risk position better. Some strategies that can help in the process are as follows:

1. Swing Trading

Swing traders look to earn from short-term price movements. So, when the open interest is rising, it means that the current trend is working out. This supports the decision to ride the trend for a few days or weeks.

Tip: Always confirm with volume. High volume and rising open interest make the trend more reliable.

2. Position Trading

Position traders hold trades for longer durations. If there is a steady increase in the open interest for a long time, then this means that the positions are developing. This is a sign of mainly institutional investors entering the trade. This adds strength to the trend and helps position traders commit confidently.

Tip: Combine with moving averages or trend indicators. This will help you time your entry during pullbacks.

3. Scalping

Scalpers look for quick trades with small price movements. Their target is to earn quickly and exit. So, if there is a high open interest, then there is more liquidity. This means the bid-ask spreads are very tight. This allows scalpers to enter and exit positions quickly without significant price impact.

Tip: Monitor intraday open interest changes in liquid contracts only.

4. Hedging

Investors use open interest data to hedge large positions using derivatives. In case of a high open interest in the future and options, you will find more liquidity. This makes it easier to set up effective hedging strategies. All this will assist with minimal slippage.

Tip: For hedging, try to prioritize instruments with the highest open interest to reduce risk.

Common Misconceptions About Open Interest

Open interest is used quite prominently. But still, there are a few misconceptions that are around it. Clearing them is very important to make the right calls. So, here are the common misconceptions to know:

1. Open Interest and Volume Are the Same

This is incorrect. Volume shows how many contracts changed hands during a trading day, regardless of whether they were new or existing. Open interest reflects the number of contracts that are still active. A contract can have high volume but unchanged open interest if traders are simply exchanging existing contracts.

2. Rising Open Interest Always Signals Bullishness

Not necessarily. Rising open interest indicates fresh participation, but the sentiment depends on price movement. If prices are rising along with open interest, it is bullish. If prices are falling, it suggests bearishness due to new short positions.

3. Declining Open Interest Means the Trend Is Reversing

Not always. A fall in open interest simply shows that traders are exiting positions. It can be a sign of the trend losing its strength. But it is not a sure sign of reversal. Prices can still continue in the same direction. This is possible even with reduced momentum.

4. Open Interest Is a Leading Indicator

Open interest is best used as a confirming indicator. This is not a predictive one. It works most effectively when combined with other signs. These include the price action, volume, and technical analysis. All these help to validate trends or spot potential exhaustion.

Open Interest vs Volume: Key Differences

Understanding the distinction between open interest and volume is essential. The key differences that you must understand are as follows:

Feature	Open Interest	Volume
Definition	Total number of contracts still active	Total number of contracts traded during the day
Change Criteria	Increases or decreases when contracts are opened or closed	Increases with every buy-sell transaction
Reset Frequency	Carried forward until position is closed	Resets to zero at the beginning of each trading day
Indicates	Market participation and existing commitments	Daily trading activity and interest
Used For	Assessing trend strength and liquidity	Gauging intraday interest and momentum
Dependency on New Trades	Reflects net additions or closures of positions	Counts all trades, regardless of position change

Benefits and Limitations of Open Interest

Open interest is a valuable metric and helps gauge the strength of a trend. However, like any market indicator, it has its strengths and weaknesses. The pros and cons to know are as follows.

Benefits of Open Interest

Confirms the strength of a price trend when used with volume and price data
Indicates active participation and rising liquidity in the contract
Helps traders identify potential reversals or continuation of trends
Useful in options trading to spot support and resistance zones
Assists in risk management and planning hedge positions

Limitations of Open Interest

Cannot be used in isolation, as will give incomplete results
Offers limited insights during sideways or low-volatility markets
The real-time effectiveness is reduced
Not applicable to cash equity markets; only used for futures and options
Does not clearly show bullish or bearish positions without context

Conclusion

Open interest offers valuable clues. These are linked to the market sentiment, trend strength, and trader activity. But these should be used with price and volume. Then it becomes a powerful tool for smarter trading decisions.

Using this can help you build better strategies, irrespective of your position. This will offer profitable outcomes and will help limit the losses.

So, are you ready to put your market knowledge to work? Start trading with confidence on Pocketful, a platform built for smart, informed investors like you.

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5	What is a Long Build Up in the Share Market?

Frequently Asked Questions (FAQs)

Can open interest help identify market manipulation?
Yes, unusual spikes in open interest without major price movement can sometimes indicate speculative activity or attempts to trap retail traders. Always confirm with volume and broader market trends.
How does open interest affect option premiums?
High open interest can increase liquidity. This often results in tighter bid-ask spreads and fairer premiums. However, premiums are more directly affected by implied volatility and time to expiry.
Is open interest relevant for intraday traders?
While open interest updates at the end of the day, some platforms provide live estimates. For intraday traders, it’s more useful to track trends over a few days than for real-time entries.
What does negative change in open interest mean?
A negative change means contracts are being closed. This could be due to profit booking, reduced interest, or traders waiting for a clearer direction. It is neither bullish nor bearish on its own.
Should retail traders follow open interest data of FIIs and DIIs?
Yes, tracking how institutional investors are building or reducing positions using open interest can offer useful clues. Their activity often sets the tone for broader market movements.

September 17, 2025

Best Education Loan in India

In today’s world, education plays an important role in shaping the country’s future. Higher education plays an important role in creating a skilled workforce for the economy. However, with the rising cost of such education, it becomes difficult for a student to opt for higher studies. Therefore, to cater for this problem, banks and NBFCs offer “Education Loan” to them so that they can pursue their higher education without worry.

In today’s blog post, we will give you an overview of the best education loan, along with the documents required to apply for the same.

Meaning of Education Loan

An Education Loan, also known as a student loan, is generally taken out for students who wish to pursue higher education in India or another country. It covers all charges paid during the tenure of education, such as tuition fees, accommodation, travel, etc. Once the student completes his/her education and gets employed, he/she can start repaying the loans.

Features of an Education Loan

The salient features of education loans are as follows:

Lower Interest Rate: The interest rate on education loans is typically lower when compared to other loans such as personal loans.
Tax Deduction: One can claim the benefit of tax under section 80E of the Income Tax regarding the payment of interest on a loan.
Financial Help: Parents who cannot afford to give their child higher education can opt for monetary support in the form of an education loan.
Repayment Duration: The education loan can be repaid over time, so it does not significantly impact cash flow.

Best Education Loan in India 2025

The best education loans in India for 2025 are as follows:

Bank	Loan Amount	Interest Rate (p.a.)	Collateral Required	Courses Covered	Key Features
SBI – Global Ed-Vantage	Up to ₹1.5 Cr	From 9.15%	Above ₹7.5 lakh	India & Abroad	No processing fee (India), girl student concession, long tenure
Bank of Baroda Scholar	Up to ₹1.5 Cr (abroad)	From 9.20%	Above ₹20 lakh	India & Abroad	100% expense coverage, interest subsidy
PNB – Udaan / Saraswati	Up to ₹1 Cr	From 9.25%	Above ₹7.5 lakh	India & Abroad	Multiple schemes, no margin up to ₹7.5 lakh
ICICI Bank iSMART	Up to ₹3 Cr	From 10.25%	Required above ₹50 lakhs	India & Abroad	Pre-visa disbursal, fast-track approval
HDFC Credila	No fixed upper limit (with collateral)	From 9.95%	Mandatory (profile-based)	India & Abroad	Custom loans, pre-visa disbursal, flexible repayment

Overview of Best Education Loan in India 2025

The overview of the best education loans in India 2025 is as follows:

1. SBI

SBI is India’s largest public sector bank in India. It offers Global Ed-Vantage as an education loan to the public through which one can cover the cost of domestic and mainly for overseas studies. It offers a low interest rate, with no processing fees for studies in India.

2. Bank of Baroda

This is a public sector bank offering “Baroda Scholar” which gives an education loan at no processing fees. It offers a competitive interest rate for higher education.

3. PNB

PNB is one of the oldest public sector banks in India, and offers “PNB Udaan” to Indian students, allowing them to take a loan to complete their higher education. The loans are available for various courses such as graduation, post-graduation and professional courses.

4. ICICI Bank

This is one of the leading private sector banks. ICICI Bank offers online processing of education loans, with flexible duration for both domestic and international students. It also offers pre-visa disbursal of loan.

5. HDFC Bank

HDFC Bank is the largest private sector bank in India. It operates a dedicated education loan NBFC under its name, “HDFC Credila”. It offers a zero collateral loan facility to top students.

Eligibility Criteria for an Education Loan

The eligibility criteria for an education loan are as follows:

Nationality: The applicant for the education loan must be an Indian. However, in some cases, it can either be a non-resident individual or a person of Indian origin.
Age: The applicant’s age generally can vary from 16 to 40 years. But there are a few government schemes in which there is no age bar.
Co-Applicant: Generally, in case of a full-time course co-applicant or a joint holder is mandatory.
Collateral: There are certain asset such as residential and commercial properties, fixed deposits, etc., which needs to be kept with the loan companies.
Admission: The applicant must have a secured admission to a recognized institute or university in India or abroad.

Expenses Covered Under Education Loans in India

The list of expenses covered under the education loans is as follows:

Tuition Fees: The tuition fees charged by the educational institute are covered under the educational loan.
Accommodation: The hostel fees or rent paid by the student for off-campus accommodation are covered under the educational loan.
Examination Fees: The fees payable to the college regarding the exam are covered under the educational loan.
Travelling: In case of foreign studies, the amount payable toward the cost of travel from a foreign country is covered under the education loan.
Project Work / Thesis Expenses: The cost related to completing the project is covered under the education loan.
Library and Lab Fees: Certain colleges levy fees to use the library and laboratory, which are covered under the education loan.
Other reasonable expenses: Some banks cover student life insurance, if opted. Other expenses like Fund Expenses, Stationery, equipment expenses are also borne by banks.

You can even use Education Loan EMI Calculator

Documents Required for Education Loan

The documents which are required to take an education loan are as follows:

An admission letter was received from the educational institute where one is looking to take admission.
Marksheets of previous classes. Generally, higher secondary and senior higher secondary marksheets are preferred.
Address Proof
Identity Proof
Age Proof in case of a minor child.
Salary slip of the applicant or co-applicant to verify the income sources.
Bank statements to verify the salary.
Income tax returns of previous years, so that the income can be verified.
Loan Application form.
Visa and Passport if applied for foreign education.
Passport-size photos.
Additional documents for studying abroad.

Advantages of an Education Loan

The significant advantages of education loans are as follows:

Access to higher education: It enables a student to get higher education from various reputed colleges in India and abroad for under-graduation , post-graduation, vocational studies, skill development courses
Tax Benefit: The interest paid of education loans is eligible for tax deduction under section 80E of Income Tax upto 8 years.
Repayment: The repayment of loans can be started after 6-12 months once the course is completed or after getting a job, whichever is earlier. Loan tenure ranges from 5-15 years.
No Financial Burden: Taking an education loan generally does not create any financial burden on the family for the higher education of a child.

Conclusion

On a concluding note, opting for an education loan for higher education is a crucial step towards building your future. There are various banks and NBFCs offering such loans, but one should do a deep comparison before opting for an education loan. Taking education loans comes with a tax benefit on the amount of interest paid under section 80E of the Income Tax. However, it is advisable to consult your investment advisor before opting for an education loan.

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Frequently Asked Questions (FAQs)

What is the moratorium period for an education loan?
A moratorium period, the waiting period is a duration of 6 to 12 months after completing the course or till the child gets a job; during this period, no EMI is required to be paid; however, the interest may accrue on it.
Is there any tax benefit on an education loan?
Yes, interest paid on an education loan is eligible for deduction under section 80E of the Income Tax Act, and it can be carried forward up to 8 years.
What types of expenses are covered under an education loan?
Almost all kinds of educational expenses are covered under an education loan, suc
Is having a co-applicant mandatory for an education loan?
Yes, a co-applicant is mandatory while taking an education loan; generally it can be a parent, guardian, or spouse.

September 17, 2025

What are Contingent Convertible(CoCo Bonds)?

The 2008 global financial crisis revealed serious vulnerabilities in banks across the world. To address these weaknesses, regulators and financial institutions developed new tools to safeguard banks during times of stress. One such innovation is the Contingent Convertible Bond (CoCo Bond). These bonds are designed to protect a bank’s capital by automatically converting into equity or losing value when certain conditions are triggered.

In this blog, we’ll explain in simple terms what CoCo Bonds are, how they work, and why they continue to play an important role in today’s financial system.

What Are Contingent Convertible Bonds (CoCo Bonds)?

Contingent Convertible Bonds, or CoCo Bonds, are a special type of financial instrument that can automatically convert into equity (shares) if required or can be completely written off i.e. their value can become zero. They give returns like normal bonds, but their role changes when the financial condition of the bank deteriorates.

CoCo Bonds are called “hybrid securities” because they have the features of both debt (debt) and equity (shares). As long as the bank is strong, they act like bonds. But as soon as the bank’s capital falls below a certain limit, these bonds convert into shares or can become completely worthless.

What is a Trigger Event?

The most special aspect of CoCo Bonds is their Trigger Mechanism. When a bank’s Common Equity Tier 1 (CET1) ratio falls below the limit set by regulators such as 5.125% it becomes a trigger and in that case CoCo Bonds are converted or written-down.

Why were CoCo Bonds introduced?

After the 2008 global financial crisis, there was a need for new tools to correct the weaknesses of banks. CoCo Bonds were promoted to strengthen banks under Basel III regulations. Their purpose is that if a bank is on the verge of sinking, then through these bonds the bank has a safety shield, so that it does not have to take a bailout from the government.

How Do CoCo Bonds Work?

CoCo Bonds or Contingent Convertible Bonds have a special condition called Trigger. When a bank’s financial condition weakens such as its capital ratio (CET1 ratio) goes below a set limit then this trigger gets activated. In India, this limit is usually 5.125% or more, which is set by regulatory bodies like RBI.

When the trigger is activated, two things can happen:

The bonds convert into shares, which gives the investor shares of the bank.
The value of the bond can be completely lost, that is, the money can be lost.

How does the conversion happen?

The purpose of CoCo Bonds is to give the bank an opportunity to provide capital in an economic crisis. When the trigger is activated, these bonds are either converted into shares of the bank (Debt to Equity Conversion) or their principal amount is written off, that is, it is completely eliminated.

How is the interest payment (Coupon Payment)?

CoCo Bonds pay interest (coupon), but the special thing is that the bank can stop this interest if it wants without it being considered a default. This is what makes them different from normal bonds. This is why CoCo Bonds are a little more risky, but often their returns are also higher.

Example : Suppose an Indian bank has issued CoCo Bonds and its financial position becomes weak its CET1 ratio goes below 5%. Now this trigger can be activated as per RBI rules. The bank will convert these bonds into shares or can destroy their value. This increases the capital of the bank, but investors can also suffer losses.

Why Banks Use CoCo Bonds

To strengthen Tier 1 Capital : CoCo Bonds allow banks to increase their Tier 1 Capital without directly issuing shares. This capital is the safety wall of the bank, which comes in handy in any financial crisis.
Protection from Insolvency : If the financial condition of a bank starts deteriorating, then CoCo Bonds work like a Loss Absorption Buffer. When the capital level decreases, these bonds convert into shares and save the bank from failure.
Helpful in meeting Capital Adequacy Norms : According to the rules of Reserve Bank of India (RBI) and Basel III, banks are required to maintain a fixed capital level. CoCo Bonds help in meeting this requirement, so banks give them priority.
Protection from Government Bailout : Private investors invest in CoCo Bonds, and when the need arises, they bear the loss not taxpayers. This eliminates the need for the government to give a bailout package and the public’s trust in the banking system remains intact.

Pros of Investing in CoCo Bonds

Higher Yields : CoCo Bonds usually offer higher interest (coupon) than traditional bonds. This is why they are attractive to investors who want better returns with fixed income.
Diversification in Portfolio : This is a unique asset class that occupies a space between debt and equity. This allows investors to better diversify their portfolio.
Contribution to the financial stability of banks : CoCo Bonds help strengthen the balance sheet of the bank. When a bank is in trouble, these bonds provide capital support, which maintains financial stability.
Flexibility (Innovative Structure) : The most important thing about these bonds is their conditional conversion – which gives the issuing bank the flexibility to convert them into shares if needed.
Liquidity in the secondary market : CoCo Bonds issued by big banks are often liquid in the secondary market, meaning investors can sell them if needed.

Read Also: What Is a Callable Bond?

Cons and Risks of CoCo Bonds

Trigger Uncertainty : Conversion in CoCo Bonds is based on fixed conditions, but these conditions are often complex. The investor does not know in advance when the bond will convert into shares or when its value will end.
Principal Loss Risk : If the condition of the bank deteriorates, the entire value of the CoCo Bond can be wiped out. That is, the investor may have to bear the loss of principal as well.
Complex Structure : The legal and financial language of CoCo Bonds is difficult for ordinary investors to understand. Therefore, these products are mainly suitable for institutional or experienced investors.
Market Sentiment Risk : The price of these bonds depends a lot on the credibility of the bank. If trust in a bank decreases, the price of CoCo Bonds can also fall even without a trigger.
No assurance of interest payment (Coupon Cancellation) : In CoCo Bonds, the bank has the right to stop paying interest for some time without considering it as a default. This affects the expectation of regular income.

CoCo Bonds vs Traditional Bonds vs Preferred Shares

Feature	CoCo Bonds	Traditional Bonds	Preferred Shares
Risk	Very High (Can be written off entirely upon trigger)	Low (Fixed returns and repayment of principal)	Medium (Dividend may be skipped in case of company losses)
Returns	High (Typically higher coupon rates)	Stable but lower	Moderate (Fixed dividend, generally higher than bonds)
Conversion Rights	Yes Can convert to equity or be written down completely	No	Sometimes Depends on company terms
Liquidity	Medium to High (Often actively traded if issued by large banks)	High (Easily tradable in secondary market)	Medium (May have lower trading volumes)
Interest/Dividend	Payable but can be skipped without default	Fixed interest regularly paid	Fixed dividend, but not guaranteed

Read Also: What are War Bonds?

Conclusion

Contingent Convertible (CoCo) Bonds can serve as an effective capital-strengthening tool for banks, but they remain highly complex and risky instruments for investors. While they typically offer higher yields, they also carry the risk of complete principal loss through write-downs or conversion to equity during stress events. CoCos are therefore best suited for sophisticated or institutional investors with a high risk appetite and a clear understanding of their structure. For most retail investors, prudence and caution are strongly advised.

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5	Detailed Guide on Bond Investing: Characteristics, Types, and Factors Explained
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7	Tax-Free Bonds: Their Features, Benefits, and How to Invest
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11	What are Social Bonds?
12	What is Insurance Bond?
13	What is Sovereign Gold Bonds?

Frequently Asked Questions(FAQs)

What are CoCo Bonds in simple terms?
CoCo Bonds are hybrid debt instruments that convert into equity or are written down if a bank’s capital falls below a regulatory threshold, helping the bank absorb losses.
Are CoCo Bonds safe for retail investors?
No, they are too risky for common investors and are suitable only for experienced investors.
Do CoCo Bonds pay regular interest?
Yes, but banks can stop paying interest if they want and it will not be considered a default.
Can I buy CoCo Bonds in India?
In India, these bonds are mainly available to institutional investors; they are not available to common investors.
Why do banks issue CoCo Bonds?
CoCo Bonds help banks strengthen their capital and enable them to handle themselves in times of crisis.

September 17, 2025

Best Fundamental Analysis App in India 2025

The participation of retail investors in the stock market in India is increasing rapidly. Recently, the number of demat accounts has increased from 19.4 crores to 22 crores. In such an environment, easy access to the right data and analysis becomes very important. A reliable fundamental analysis app India helps investors understand the financial metrics and the true picture of the company.

In this blog, we will discuss why fundamental analysis apps are important for investors and why Pocketful Mobile App is a great option today.

Why Investors Need Fundamental Analysis Apps ?

To take the right decisions in the world of investment, it is not enough to depend only on news or tips. To understand the real picture, it is necessary to do fundamental analysis-that is, an in-depth study of the company’s balance sheet, profit and loss statement and key ratios. It includes indicators like P/E ratio, Return on Equity (ROE), Debt-to-Equity (D/E), etc. These parameters tell how strong the financial position of the company is and how its performance can be in the future.

But without apps, this process becomes very difficult. Manual calculation is time consuming, collecting data from different websites is troublesome and many times correct and updated information is not available. Due to this, investors often miss good opportunities.

This is where fundamental analysis apps prove to be helpful. Through these apps:

All important ratios are readily available.
You can filter companies using stock screener fundamentals India as per your requirement, like “Debt/Equity < 0.5 and ROE > 15%.”
Easy to view financial data and peer comparison for the last 5–10 years.
Industry benchmarks and sector-wise performance are instantly understood.
Portfolio insights and alerts help investors make timely decisions.

In short, a smart fundamental analysis app India empowers investors to make data-driven, reliable, and quick decisions a must in today’s fast-changing market conditions.

Top 10 Fundamental Analysis Tools/Apps in India

App Name	Key Features	Best For	Pricing
Pocketful	Peer comparison, Curated stock news alerts, financial metrics brokerage integration	Investors of all levels (Beginners to Pro)	Free
Screener	10+ years of financial data, custom queries, screeners	Investors who do in-depth research	Free + Premium
Tickertape	200+ filters, easy interface, sector-wise analysis	Beginner and mid-level investors	Free + Premium
Moneycontrol	Market News, Company Financials, Ratio Analysis	News-Driven Investors	Free + Premium
Investing.com	Global & Indian Market Data, Charts + Fundamentals	Those seeking international comparisons	Free + Premium
StockEdge	Readymade Screeners, Sector Analysis, Daily Updates	Active retail investors	Free + Paid
Trade Brains Portal	SEBI-registered research reports, model portfolio, AI screener	Investors Seeking Guidance	Paid Plans
Research 360	Data-based research, quant and fundamental screeners	Pro investors who do detailed research	Free + Paid
ET Markets	Live market updates, financial data, news integration	Both news and data seekers	Free + Paid
MarketsMojo	In-depth analysis, portfolio tracking	Value Investors and Long-Term Planners	Paid Plans

Overview of Fundamental Analysis Apps in India

An overview of the fundamental analysis apps in India is given below:

1. Pocketful

Pocketful is a modern, all-in-one platform for Indian investors that makes research and portfolio tracking easy. It provides detailed financial metrics, key ratios, shareholding patterns, news on stocks in your portfolio, and customizable watchlists. Additionally, it offers a Margin Trading Facility (MTF) at just 5.99 percent interest, the lowest in India, allowing investors to manage larger portfolios with less capital. Overall, Pocketful is ideal for investors who want insights, updates, and trading support in one platform.

Key Features

Advanced financial metrics and key ratios
Shareholding patterns and news updates for portfolio stocks
Customizable watchlists
MTF facility at 5.99% interest rate

Pros

User-friendly for both beginners and experienced investors
Research, news, and trading support in one place
Cheapest MTF rates in India

Cons

Pocketful is in its early stages and may expand its offerings over time.

2. Screener

If you want to know the real financial condition of companies, then Screener is a reliable tool for you. Here you get more than 10 years of balance sheet, profit-loss and cash flow data in one place. The best part is that you can create filters and queries according to your needs, such as “companies with ROE above 15%” or “companies with low debt/equity.” It proves to be very helpful for those who like to do research.

Key Features

10+ years of company data
Custom screeners and queries
Annual reports and conference notes
Excel automation and Screener AI in premium

Pros

In-depth data and customization
Readymade screens and community support
Best for research-focused investors

Cons

New investors may find it a bit complicated
Some advanced features are available only in premium

3. Tickertape

Tickertape is designed for investors who want to view quick and clean data with an easy-to-use interface. There are over 200 filters that allow you to sort companies by different parameters like PE ratio, ROE, sector or market cap. It also has features like portfolio analysis and market sentiment that help even new investors figure out which stocks might be best for them. The design is clean and attractive, which makes the learning process easier.

Key Features

200+ filters and ready-made screeners
Simple and attractive interface
Portfolio analysis and market sentiment
Sector-wise and peer comparison

Pros

Simple for beginner investors
Extensive filtering options
Clear data visuals and dashboards

Cons

Limited in-depth historical data
Some features only available in premium

4. Moneycontrol

Moneycontrol is one of the most popular apps among Indian investors, especially those who pay attention to news and market updates. It provides real-time stock prices, index movements, commodity, currency and F&O data all in one place. Also, you can track your portfolio and create watchlists. Its news section is constantly updated from CNBC-TV18 and other sources, so investors can always get the latest information. It is ideal for those who like to keep track of every market movement along with investing.

Key Features

Real-time market data and index tracking
Portfolio management and watchlists
Business and market news updates
Commodity and currency segments covered

Pros

News and data on a single platform
Portfolio tracking easy
Indian market coverage comprehensive

Cons

Interface may seem a bit cluttered for new users
Some advanced features are subscription-based

5. Investing.com

Investing.com is a global platform but is also very useful for Indian investors. The app offers data not only on stocks but also on indices, currencies, commodities and bonds. For the Indian stock market, real-time prices, charts, financials and fundamental ratios are easily accessible. The interface is simple and allows global investors to track both international and Indian markets in one place. It is especially useful for investors who want to compare Indian companies with global benchmarks.

Key Features

Global and Indian market coverage
Real-time data and charting tools
Company financials and basic ratios
Currency, commodity and bonds data

Pros

Both international and Indian data available
Multi-asset coverage (from stocks to currencies)
Easy and user-friendly interface

Cons

Some advanced charting features in paid version

Data on Indian stocks not as deep as in local apps

6. StockEdge

StockEdge is a popular app among retail investors in India, especially for those who want to keep a close track of daily market movements. It has a number of ready-made screeners, such as companies with high ROE, low debt, or high growth. Apart from this, information like daily updates, sector-wise analysis and FII/DII activity is also available. This app is a good option for those who want to filter companies in a quick and easy way. It also has charting and data visualization, which makes it easier to understand the figures.

Key Features

Readymade and custom stock screeners
Daily updates and sector analysis
FII/DII activity and market trends
Charting and data visualization

Pros

Daily updates and readymade screeners
Sector-wise information presented in a clear and transparent manner
Useful for both new and active traders

Cons

Limited in-depth financial data
Some features are available only in the paid version

7. Trade Brains Portal

Trade Brains Portal is designed for investors who prefer guided analysis and research. The platform offers features like SEBI-registered research reports, readymade screeners, and model portfolios. You can filter companies on different financial ratios and growth parameters, making it easier to find the right stocks. Apart from this, AI-based tools are also available, which help in understanding the data in a better way.

Key Features

SEBI-registered research reports
Advanced stock screener and model portfolio
AI-based analysis tools
Easy and clean interface

Pros

Expert guidance and research support
Useful for beginners and intermediate investors
Both data and research on one platform

Cons

Some features only in paid plans
Limited data in free version

8. Research 360

Research 360 is an all-in-one research platform launched by Motilal Oswal. This app is especially for investors who like to do data-driven analysis. It has both fundamental and quantitative screeners, through which you can filter companies on parameters like growth, profitability, valuation and debt. Along with this, market research reports, sector insights and peer comparisons are also available in it. This tool is especially useful for investors who want to take long-term investment decisions by doing detailed research.

Key Features

Fundamental and quant screeners
Research reports and sector analysis
Company-wise detailed data and charts
Peer comparison and valuation tools

Pros

Research-based and detailed insights
Useful for long-term investors
Both financial and quantitative analysis

Cons

Features may seem a bit complex for new investors
Some advanced reports available only in premium

9. ET Markets

ET Markets is a market-focused app from Economic Times that gives investors real-time updates and research tools all in one place. You can find live information on Sensex, Nifty, stocks, mutual funds and commodities. It also includes a stock screener, financial data, charts and market news. The news section is its biggest feature as it gives investors timely information and expert opinion. It is useful for those who want to keep a quick track of market movements and news along with data.

Key Features

Real-time index and stocks updates
Stock screener and financial data
Market news and expert opinion
Mutual funds and commodity data

Pros

News and data in one place
Real-time updates and alerts
Good for beginners and news-driven investors

Cons

Interface can sometimes seem cluttered
Some features take time to learn

10. MarketsMojo

MarketsMojo is tailored for investors who want an actionable investment score and curated stock lists across global markets. Its standout feature is the Mojo Score, a single quantitative rating that simplifies decision-making. Users can screen over 34,000 stocks from 29 countries, access sector-ranked “Mojo Stocks,” and view weekly, monthly, and momentum-based top picks.

Key Features

Proprietary rating summarizing valuation, growth, and quality
34,000+ stocks across 29 countries
Sector and peer performance comparisons, return vs. benchmark metrics
Historical performance data for each recommendation

Pros

Proprietary Mojo Score distills complex data into one rating
Access to a vast universe of global equities
Returns vs. benchmark shown for informed decision-making
Lists refreshed weekly and monthly for current opportunities

Cons

Full access to Mojo Scores and backtested lists requires a paid plan
Proprietary scoring methodology may lack transparency for some users.

Key Features of the Best Fundamental Analysis App in India

Comprehensive and Reliable Data: The most important strength of any investment app is the availability of accurate and up-to-date information. With 8–10 years of historical balance sheet, profit & loss, and cash flow data, investors can effectively evaluate a company’s growth trajectory and financial stability.
Smart Stock Screener : Every investor has his own needs. A good app should have filters that help you quickly decide which company is right for you such as low debt-to-equity, good ROE or consistent profit growth.
Simple and clear interface : Data is useful only when it is easy to understand. A good app is one that has a simple and clear interface, so that even new investors can access the necessary information without getting confused.
Peer Comparison and Sector Analysis : A company cannot be evaluated in isolation. It is important to compare it with other companies in the same sector. This feature tells investors whether the performance of a company is better than the average or behind.
Timely Alerts : The market changes quickly. If a company’s ROE falls or its debt suddenly increases, the app should give an immediate alert. This allows the investor to take action without delay.
Direct connection with the broker : The most useful apps are those that are not just limited to analysis, but are directly connected to the brokerage account. This allows you to do research at one place and also take quick investment decisions.

How to Choose the Right Fundamental Analysis App

Simple interface : For beginner investors, the most important thing is that the app has a clean design and the information is presented in a simple way. This allows basic analysis to be done without any confusion.
Depth of data : Serious investors prefer apps that have long historical data, balance sheets, cash flows and advanced filtering.
Timely information : Some investors need real-time news and market updates. Such tools help them quickly take a look at the latest events and changing statistics.
Balanced features : Many users want an app that is neither too complex nor too basic. Features like advanced screeners and alerts along with an easy interface bring balance.
Integrated solution : For professional traders, it is better if the app combines both research and trading in one place. This makes it easier to take immediate action after analysis.

Conclusion

To take the right decision in the stock market, it is not enough to rely only on speculation or rumors. The real difference comes when you have reliable data and its correct analysis. This is what a good fundamental analysis app India does – it strengthens the investor’s thinking by presenting the data in a simple way. If the research is easy and correct, then every step will be taken with more confidence. That is why choosing the right stock screener fundamentals India is important for every investor in today’s era.

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Frequently Asked Questions (FAQs)

What is a fundamental analysis app India used for?
This app helps investors to choose the right stocks by showing the company’s financial data, ratios and balance sheet.
How does a stock screener fundamentals India help investors?
This allows you to filter companies according to your needs, such as companies that give consistent profits or have low debt.
Are these apps useful for beginners in the stock market?
Yes, they have an easy interface and basic analysis tools, which even new investors can learn easily.
Do fundamental analysis apps provide real-time data?
Some apps provide real-time market data, while others update with a slight delay. The availability of live updates often depends on whether you use the free or premium version.
Are fundamental analysis apps free to use?
Many apps offer free versions with basic features, while advanced tools like screeners, research reports, or in-depth analytics are usually available in premium or paid plans.

September 16, 2025

What are Bond Valuation?

In the bond market, you must have noticed that the price of some bonds increases over time, while some decrease. Why does this happen? The answer lies in bond valuation i.e. determining the correct price of the bond. When we understand the actual value of a bond, only then we can know whether that bond is expensive or cheap.

Bond valuation is not just about applying a formula; it is a crucial process for investors, traders, and financial professionals alike. By understanding bonds and valuation, you can make the right investment decisions and get better returns.

What is Bond Valuation?

Bond valuation is a process in which we determine the correct or real price (Fair Market Price) of a bond. This value is determined by discounting the future interest payments (coupons) and maturity amount of the bond as per today’s date. In simple language, this is a way to understand how much a bond should be worth today. Understanding valuation of bonds is very important for investors because :

It shows whether a bond is overvalued or undervalued, i.e. expensive or cheap.
Knowing the correct value of a bond makes it easier to take a buy/sell decision.
Mutual funds, pension funds, insurance companies and big investors use it for portfolio management.

If you buy a bond at the wrong price, it will affect both your returns and risk.

Types of Bonds

Each bond is valued differently, such as:

Government bonds: Considered safe, but offer low returns.
Corporate bonds: High returns, but also high risk.
Zero-Coupon bonds: These do not pay interest, but are available at a discount and the entire money is returned on maturity.

Each type of bond has different risk, returns and pricing methods.

Bond Valuation Formula Explained

To find the true value of any bond, we use a special formula called the bond valuation formula. This formula is based on adding all future coupon payments and the face value at maturity, discounted to today’s time.

Bond Price = ∑ (Coupon Payment / (1 + r)^t ) + (Face Value / (1 + r)^n)

Where

Coupon Payment = Interest received every year
r = Rate of return or discount rate (Yield to Maturity)
t = Year of payment (from 1 to n)
n = Total duration of the bond (years till maturity)
Face Value = Principal amount received on maturity

Example : Suppose there is a bond:

Face Value: ₹1,000
Coupon Rate: 10% (i.e. ₹100 interest every year)
Maturity: 5 years
Required Return (r): 8%

Step 1: Calculate Annual Coupon = 10% of ₹1000 = ₹100

Step 2: Calculate Present Value of Coupons

Year	Formula	PV (₹)
1	100 / (1 + 0.08)^1 = 100 / 1.08	92.59
2	100 / (1 + 0.08)^2 = 100 / 1.166	85.73
3	100 / (1 + 0.08)^3 = 100 / 1.260	79.39
4	100 / (1 + 0.08)^4 = 100 / 1.361	73.49
5	100 / (1 + 0.08)^5 = 100 / 1.469	68.05

Total PV of Coupons = ₹399.25

Step 3: Calculate PV of Face Value

= 1000 / (1 + 0.08)^5

= 1000 / 1.469 = ₹680.58

Step 4: Total Bond Price = PV of Coupons + PV of Face Value

= ₹399.25 + ₹680.58 = ₹1,079.83

Final Bond Price = ₹1,079.83

Factors That Impact Bond Price

The price of a bond does not depend only on its coupon or duration, but many external and internal factors together determine its market value. Let us know the main factors that affect bond valuation:

Interest Rate : There is an inverse relationship between interest rate and bond price. When the interest rate in the market increases, the value of existing bonds decreases, because new bonds start giving higher returns.
Credit Rating and Risk : A bond with a weak credit rating also has a low value because there is a higher risk of default. For example: AAA rated bonds are considered safer.
Duration and Maturity : Bonds with a longer duration are more interest rate sensitive and their price fluctuates more.
Inflation : Higher inflation reduces the future coupon value, which reduces the price of the bond.
Liquidity : If there are fewer buyers for a bond in the market, its liquidity is low and there is pressure on the price.

Yield vs. Price – The Inverse Relationship

Let us understand this with a simple example:

Bond Price (₹)	Coupon (₹)	Yield (%)
₹950	₹100	10.5%
₹1000	₹100	10.0%
₹1050	₹100	9.5%

In the table above, the coupon of the bond is fixed, but the yield changes as its price changes. This is the “inverse dance” of yield and price.

So when interest rates rise in the market, the prices of older bonds fall so that their yields can adjust according to the new rates. This is called the Yield to Maturity (YTM) effect, which shows the real return of the investment.

Real-World Application of Bond Valuation

Type of Investor	How They Use Bond Valuation
Individual Investors	To know what is the real value of the bond and whether it is expensive or cheap in the market. This helps in choosing bonds with better returns and less risk.
Retirement Planners	Valuation helps select long-term stable income bonds that are beneficial for retirement.
Mutual Funds / Insurance Companies	To rebalance your portfolio periodically and help with fund allocation.
Professional Traders	When the value of the bond is less than the market price, then one looks for an opportunity to earn profit by trading.
Financial Analyst	By finding out the correct value of bonds we determine how strong the company’s debt instruments are.

Common Mistakes to Avoid before Investing in Bonds

Ignoring interest rate changes : Fluctuations in interest rates in the market directly affect the value of the bond. If you ignore these changes, your valuation may be incorrect.
Ignoring a drop in credit rating : If the credit rating of the company issuing the bond decreases, the risk of default increases. This must be included in the valuation.
Using the wrong discount rate : Calculating the current value of the bond without choosing the right discount rate can give incorrect results. This can weaken your entire investment strategy.
Considering the market price as the value : Many investors think that the price in the market is the real value of the bond. Whereas due to temporary fluctuations in the market, there may be a difference between the price and value.
Ignoring liquidity and bond features : Many bonds have extra features like call options, which affect both its return and risk. If these aspects are not understood, the valuation remains incomplete.

Read Also: What Is a Callable Bond?

Conclusion

Bond valuation is not just a mathematical process but the key to investing wisely. Whether you are a retail investor or a professional, correct valuation can help you strike a balance between returns and risk. If you take into account factors like interest rate, time period and risk, your decisions will be more accurate and profitable. Investing requires wisdom, not haste and that is what bond valuation teaches.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What are War Bonds?
2	What is Sovereign Gold Bonds?
3	What is Coupon Bond?
4	What is Insurance Bond?
5	What are Social Bonds?

Frequently Asked Questions(FAQs)

What is bond valuation?
Bond valuation is a process by which the correct price of a bond i.e. its current value is determined.
How is bond price calculated?
The price of a bond is calculated by discounting its future coupon payments and final payment.
Why does bond price fall when interest rates rise?
Because new bonds start giving higher returns, old bonds become less attractive, so their price falls.
Is bond valuation important for retail investors?
Yes, it shows whether a bond is overpriced or underpriced, which helps in taking the right investment decision.
What factors affect bond valuation the most?
Interest rate, bond duration, credit risk and market demand have the most impact.

September 16, 2025

What is Sovereign Gold Bonds?

Indians have cherished gold for generations, not only for its use as jewellery but also as an effective means to store wealth. Today’s investors have a better, smarter alternative to the coins and ornaments our grandparents saved: Sovereign Gold Bonds (SGBs).

SGBs, which are issued by the Reserve Bank of India, backed by the government, allow you to have gold ownership without being concerned about purity, safety, or storage. Additionally, they give you interest as the value of your gold investment steadily increases.

In this blog, we will explain what SGBs are, how they work, and why they might be a great addition to your investment portfolio.

Understanding Sovereign Gold Bonds

Sovereign Gold Bonds (SGBs) are a convenient way to invest in gold without actually buying or storing the metal. Issued by the Reserve Bank of India (RBI) on behalf of the Government of India, these bonds are among the safest gold investment options available.

Instead of keeping physical gold at home or in a locker, investors purchase these bonds, which are linked to the prevailing market price of gold. As gold prices rise, the value of your SGB investment rises accordingly.

What makes SGBs unique is that they not only mirror the price of gold but also pay an assured interest of 2.5% per year, credited semi-annually to your bank account. This additional return is something you won’t get with physical gold or even gold ETFs.

Key Features of Sovereign Gold Bonds

1. Denomination

You can buy SGBs in amounts of 1 gram of gold or more. It’s great if you want to get some gold without having to buy a lot of it.

2. Tenure: 8 Years

You can redeem each bond early, but only on interest payment dates, after the 5th year.

3. Interest Income

You get 2.50% interest on your investment annually, which is paid out twice a year.

4. Redemption

When the investment matures or you withdraw early, you get the cash value of gold in the market (no physical delivery).

5. Tax Benefits

You have to pay taxes on interest earned.

If you hold it until it matures, you won’t have to pay capital gains tax.
If you sell SGBs on stock exchanges after holding for more than 12 months, you will pay 12.5% long-term capital gains tax without any indexation benefit.

6. No worries about Storage & Purity

There is no risk of theft, impurity, or storage fees because you do not hold real gold.

7. How it is held

You can either keep SGBs in Demat form or get a paper certificate. Do what works best for you.

8. Can be traded

You can buy or sell them in the secondary market before they mature because they are listed on stock exchanges. However, liquidity may be different.

9. Collateral for a loan

Just like real gold, SGBs can be used as collateral for loans.

Advantages of Investing in Sovereign Gold Bonds

1. Generate Additional Income

SGBs pay 2.5% annual interest, which is credited to your bank account every six months, unlike physical gold or gold ETFs.

2. No Troubles with Storage

You don’t have to worry about purity challenges, locker fees, or safekeeping. Without actually holding the gold, you are making an investment in it.

3. Backed by the Government of India

SGBs are among the safest gold investment options available because they are issued by the RBI on behalf of the Indian government.

4. Capital Gains Without Tax

Any capital gains you make from holding your SGBs until they mature (eight years) are entirely tax-free. Compared to other gold investment options, that is a significant advantage.

5. Minimal Barrier to Entry

SGBs are accessible to even small investors because you can begin investing with just one gram of gold.

6. Capable of Serving as Collateral for Loans

SGBs can be pledged as security for bank and financial institution loans, just like real gold.

7. Tradable on Stock Exchanges

You have to exit before maturity? You can sell your SGBs in the secondary market (on stock exchanges).

8. Simple and Transparent Investment

Unlike jewellery or coins, there are no manufacturing fees, waste expenses, or quality concerns.

9. Options for Digital or Physical Holding

Depending on what works best for you, you can hold them as paper certificates or in Demat form.

10. Perfect for Diversifying Your Portfolio

When there is inflation or economic uncertainty, gold usually performs well. SGBs provide an easy way to increase your portfolio’s exposure to gold.

Why did Government Stop Issuing New SGBs

SGBs were initially seen as an option for attracting investors against “paper gold,” lowering imports, and providing a secure return.

However, it became too costly to maintain due to the large government payouts caused by rising gold prices. Even though the RBI backed the bonds, they ultimately caused financial strain and missed targets, which led authorities to stop issuing new ones around the February 2024–FY25 budget.

The price of gold was about ₹2,400 per gram in 2015, when the scheme started off. As gold prices rose to over ₹8,000 per gram over time, the government was compelled to pay back investors at these exorbitant rates on top of the 2.5% interest that had been promised.

As of September 2025, gold prices have risen to over ₹10,500 per gram, representing a 4x increase since 2015. This dramatic price appreciation has resulted in substantial returns for SGB investors, with some early series showing returns exceeding 150%. Currently, as of the FY25 budget, no new SGBs are being issued.

The present investors are not impacted; redemption occurs following the original terms, and interest payments (2.5%) continue until maturity.

Read Also: What Is a Callable Bond?

How to buy SGBs in the Secondary Market

You can buy SGBs in the secondary market by following the steps mentioned below:

Open a Demat Account
Search for available SGBs. Each bond will have a name, SGBMAY28 (Sovereign Gold Bonds maturing May 2028), etc.
Check the details like price per gram, maturity date, interest payment dates, etc.
Place your buy order.
Earn Interest & hold till maturity. Once matured, RBI will credit the redemption amount, depending on the then gold price, directly to your bank account

Read Also: What are War Bonds?

Who Should Invest in Sovereign Gold Bonds

1. Long-term Gold Investors

SGBs are a better option than physical gold if you have already made a long-term investment in gold, say for five to eight years or longer. You receive returns on the price of gold in addition to additional interest income (2.5% annually).

2. Individuals Who Decide Not to Keep Physical Gold in Storage

Concerned about locker fees, purity, or safety? SGBs eliminate the hassle of storage, charging, and theft concerns.

3. Investors who want to save tax

You pay no capital gains tax if you hold SGBs until maturity, that is, eight years. When compared to selling gold ETFs or jewellery, that is an important win.

4. Risk-Averse Investors Seeking a Secure Choice

Since the Government of India is issuing these bonds, there is no credit risk, making them the safest option available.

5. Investors Seeking Passive Income

Apart from the gold returns, the 2.5% annual interest that is paid every six months acts as a little bonus.

6. Individuals Seeking to Expand Their Investment Portfolio

Including a small amount of gold in your portfolio helps you manage risk, particularly when there is inflation or market volatility. SGBs are an effective and safe method of doing that.

Read Also: What is Insurance Bond?

Conclusion

Sovereign Gold Bonds combine innovation and tradition to offer investors more than just another gold investment option. Along with the benefits of regular interest income, tax advantages, and no storage hassles, you also get the security and timeless value of gold.

SGBs provide a more skilled and lucrative option if you intend to hold gold for an extended period of time. They are secure, supported by the government, and made to blend in perfectly with any contemporary investment plan. Therefore, the next time you consider purchasing gold, you might want to switch to digital, with a little gold that works better for you.

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2	Explainer on Green Bonds: History, Process, Pros, Cons, and Future Outlook
3	What Is Bowie Bond (Music Bonds) : History, Features, Advantages & Disadvantages
4	Secured and Unsecured Bonds: Understand the Difference
5	Detailed Guide on Bond Investing: Characteristics, Types, and Factors Explained
6	What is Coupon Bond?
7	Tax-Free Bonds: Their Features, Benefits, and How to Invest
8	What are Bond Yields?
9	Stocks vs Bonds: Difference Between Bonds and Stocks
10	What Are Corporate Bonds?
11	What are Social Bonds?

Frequently Asked Questions (FAQs)

How long do SGBs last?
8 years, with the option of quitting after the fifth year.
What kinds of returns are available from SGBs?
Every six months, you receive 2.5% annual interest in addition to the appreciation of the price of gold.
Are SGBs subject to taxes?
Interest is taxable, but capital gains are tax-free if held till maturity. If sold on stock exchanges after holding for more than 12 months, a 12.5% long-term capital gains tax applies without indexation benefit.
Is it possible to trade SGBs before they mature?
Although their liquidity may vary, they are listed on stock exchanges.
Is it still possible to invest in SGBs?
As of FY25, no new SGBs are being issued; however, you can still buy existing ones on the secondary market.

September 15, 2025

Platinum vs Gold Price: Which is More Expensive and Better Investment?

Gold has always been a symbol of wealth and has been used as an investment option. Every household in India prefers to have gold as jewellery. Platinum, on the other hand, is regarded as a modern status symbol, often associated with luxury and exclusivity. Many assume that platinum is always more expensive than gold because of its rarity. But is that really true? Let’s break it down.

In this blog, we will dive into the key difference between platinum and gold and will tell you which one is more expensive and why.

Is Platinum More Expensive Than Gold?

While platinum is 30 times rarer than gold and more difficult to mine, it is currently cheaper than gold in global markets. Here’s why:

Rarity vs. Demand: Platinum is rarer, but gold enjoys higher demand worldwide, especially in jewellery, investments, and central bank reserves.
Industrial Sensitivity: Platinum’s price is heavily linked to industrial demand (especially in automobiles for catalytic converters). If demand falls, prices dip quickly. Gold, however, is considered a “safe-haven asset” — investors flock to it during uncertainty, which keeps its value higher.
Market Dynamics: Global gold prices have consistently stayed above platinum in recent years, despite platinum being harder to extract.

So, while platinum is more exclusive, gold is usually more expensive per gram.

Difference Between Platinum and Gold

The key differences between platinum and gold are as follows:

Particular	Platinum	Gold
Availability	Platinum is rarer than gold, hence, not easily available.	The availability of gold is comparatively higher than that of platinum.
Colour	The colour of platinum is white or silvery.	Gold is generally yellow.
Durability	Platinum is more durable than gold and is a very hard metal.	Gold is comparatively softer and prone to scratches.
Price	The price of platinum is generally cheaper than that of gold.	Gold is more expensive than platinum.
Tradability	Limited investment options, less liquid.	Gold can be easily traded among investors.

Platinum vs Gold: Which is more durable?

When it comes to durability, platinum clearly outperforms gold. Platinum is denser and stronger, which means it resists scratches and daily wear better than gold. Over time, platinum maintains its shape and quality, while gold, especially in higher purity forms like 24 carat, is softer and more prone to bending, scratching, and losing its finish due to friction. In short, if durability is your priority, platinum jewellery lasts longer and requires less maintenance than gold.

Should You Invest in Platinum or Gold?

In India, gold has always been the traditional choice of investment. It is trusted, widely accepted, and offers both liquidity and long-term appreciation in value. Platinum, on the other hand, is less common as an investment but has the potential to deliver higher returns during favorable market conditions.

Platinum prices tend to be more volatile because they are closely tied to industrial demand, making it more suitable for investors seeking short-term opportunities. Gold is comparatively stable and continues to be the preferred option for those looking for long-term security and steady growth. Ultimately, the choice between platinum and gold depends on your financial goals and risk appetite.

Eligibility Criteria for Platinum and Gold Loan

The eligibility criteria for taking platinum and gold loan in India are as follows:

The individual must be 18 years of age.
A fixed income is not mandatory for securing a loan against gold or platinum.
Having a good credit score is not mandatory for taking platinum and gold loans.

Conclusion

Platinum is one of the rarest and most valuable metals in the world, known for its durability and density. However, despite its exclusivity, gold continues to hold stronger demand globally and is generally more expensive. Gold is widely accepted, easily available, and deeply rooted in tradition, while platinum stands out for its strength, rarity, and modern appeal. Both metals can serve as investment options, but the right choice depends on your goals and risk appetite. It is always advisable to consult a financial advisor before making an investment in gold or platinum.

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5	Top 10 Most Expensive Stocks in India
6	Top 10 Reasons to Invest in Gold

Frequently Asked Questions (FAQs)

Is platinum more expensive than gold?
No. Although platinum is rarer, gold is generally more expensive because of higher global demand.
Which is more durable, gold or platinum?
Platinum is more durable than gold because of its density and scratch-resistant nature.
Can I take a loan against platinum?
Yes, there are various NBFCs and financial institutions that provide loans against platinum.
Why is gold more valuable than platinum despite being less rare?
Because gold has higher investment demand, cultural value, and acts as a safe-haven asset.
Is platinum also measured in karats?
No, unlike gold, platinum is not measured in karats; it is expressed as a percentage. For example, a 950 Plat is considered that the platinum is 95% pure platinum.

September 15, 2025

Blog

20 Things to Know Before the Stock Market Opens

The 20 Things to Know Before Market Opens

Global & Domestic Cues (Macro Factors)

1. Overnight US Market Performance

2. Asian & European Market Trends

3. Currency Movements (USD-INR)

4. Crude Oil Prices

5. Bond Yields & Interest Rates

6. Government & RBI Announcements

Market-Specific Indicators (Technical and Data Points)

7. GIFT Nifty & Pre-Open Indicators

8. FIIs vs. DIIs Data

9. Corporate Earnings Announcements

10. Bulk & Block Deals

11. Insider Activity / Promoter Pledging

12. Keep an eye on technical levels

News & Events That Can Move Markets

13. Big news and geopolitical events

14. New updates related to the sector

15. Company announcements

16. Impact of economic data

17. Analyst reports

Personal Preparation & Trading Psychology

18. Finalize your watchlist

19. Check Risk Management Rules

20. Mental preparation and discipline

Why is pre-market preparation important?

Tools & Resources for Pre-Market Research

1. Official Websites (NSE & BSE)

2. Pocketful App and Web

3. Popular Financial Portals

Common Mistakes Traders Make Before Market Opens

Conclusion

Frequently Asked Questions (FAQs)

What should I check before the market opens?

How does pre-market data help traders?

Can Pocketful help in pre-market research?

Should I rely only on GIFT Nifty before the market opens?

What mistakes should I avoid before the market opens?

10 Best Indicators for Swing Trading 2025

Top 10 Swing Trading Indicators Every Smart Trader Should Know

1. Moving Averages (SMA & EMA)

2. Relative Strength Index (RSI)

3. MACD (Moving Average Convergence Divergence)

4. Bollinger Bands

5. Stochastic Oscillator

6. Volume

7. Fibonacci Retracement

8. Average True Range (ATR)

9. Parabolic SAR (Stop and Reverse)

10. Pivot Points

Conclusion

Frequently Asked Questions (FAQs)

What is the most accurate indicator for swing trading?

How many indicators should I use in swing trading?

Can I swing trade using just RSI?

Are technical indicators better than fundamental analysis in swing trading?

What’s the best timeframe for swing trading indicators?

Sovereign Gold Bonds vs. Gold ETF: Which is a Better Investment?

What are Sovereign Gold Bonds?

What are Gold ETFs

Table of Differences between Sovereign Gold Bonds & Gold ETFs

Advantages of Investing in Sovereign Gold Bonds

Advantages of Investing in Gold ETFs

Risks & Limitations of Sovereign Gold Bonds & Gold ETFs

GOLD ETFs

Sovereign Gold Bonds

Taxation – Sovereign Gold Bonds & Gold ETFs

Gold ETFs

SGBs, or Sovereign Gold Bonds

Conclusion

Frequently Asked Questions (FAQs)

What is the lock-in period for SGBs?

Can I trade SGBs before maturity?

Do Gold ETFs give interest?

How much interest do SGBs offer?

Are SGB returns tax-free?

Open Interest: Meaning, Functionality & Importance

What is Open Interest?