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Category: Investing

  • What is Auction Market?

    What is Auction Market?

    While trading in the share market, you must have seen that the price changes are quite frequent. But what you might not have realised is that this is the result of an ongoing auction. Yes, this is the auction market. It is a situation where the buyers and sellers continuously compete to get the right deal for them. 

    To understand price movements better, it helps to know what is auction trading and why this mechanism is central to how stocks are bought and sold every day.

    What Is an Auction Market?

    An auction market is a market where prices are discovered through trading rather than fixed in advance. This is done through continuous interaction between buyers and sellers. Participants in the market place bid and offer. The seller chooses to sell when a bid matches their acceptable price. When these prices match, a trade takes place. There is no preset transaction price. The market itself decides the price.

    This is where auction market theory becomes important. It explains how prices move as new orders enter the market. According to the theory, prices tend rise when buying pressure is stronger and fall when selling pressure dominates. In the share market, this process helps traders understand price behaviour, liquidity, and why stocks move the way they do during the trading day.

    How an Auction Market Functions

    An auction market works as a continuous process where prices are shaped by active participation from buyers and sellers. Instead of fixed prices, the market keeps adjusting as new orders enter. This is the foundation of auction market theory, which explains how prices are discovered in real time.

    1. Market as an Ongoing Auction

    This is true for most trades in the share market. Buyers and sellers constantly negotiate. It is done using bids and offers. Prices move until both sides agree, making the market dynamic throughout the day.

    2. Price Discovery and Fair Value

    The goal of auction trading is to discover a fair price. This is the price level where the highest number of trades occur. The demand and supply tend to balance at this level. Also, the price often stabilized temporarily around this level.

    3. Buyer and Seller Imbalance

    Prices change when there is an imbalance. When the buyers are more, the price tends to rise. But when the sellers are more, the price tends to fall. The changes in price is caused by news, policy, and so on.

    4. Point of Control in the Share Market

    The Point of Control represents the price where maximum trading volume happens. It shows where the market accepted price levels for a longer time and signals a balance.

    5. Role of Price and Spot Price

    Price reflects the level at which buyers and sellers agree to transact. The spot price is the current market price at which an asset can be bought or sold instantly. It keeps updating as orders change.

    6. Bid and Ask Price Dynamics

    The bid price shows what buyers are willing to pay. The ask price shows what sellers want. The gap between them indicates liquidity. A narrow spread signals active trading.

    7. Volume and Time Interaction

    Volume confirms the strength of the price movement. Time shows how long the price stays at a level. Together, they help traders understand balance and imbalance phases in auction trading.

    Read Also: What is MIS in Share Market?

    Key Stakeholders in Auction Trading

    Auction trading functions smoothly because different participants play specific roles in the market. Each stakeholder influences how prices are formed and how trades are executed.

    1. Buyers

    Buyers place bids based on the price they are willing to pay. Their demand creates upward pressure on prices. Strong buying interest often signals confidence in the asset.

    2. Sellers

    Sellers place ask orders at prices they want to receive. Increased selling adds downward pressure on prices. Their actions reflect profit booking or risk concerns.

    3. Stock Exchange

    The exchange provides the platform for auction market activity. It matches orders in a transparent manner. It also ensures fair execution using price-time priority rules.

    4. Brokers and Trading Platforms

    Brokers connect market participants to the exchange. They route orders and provide market data. This enables smooth participation in auction trading.

    5. Market Makers and Liquidity Providers

    These participants help maintain liquidity. They do this by continuously quoting bid and ask prices. They reduce spreads and support stable trading. This is important during volatile periods.

    6. Regulators

    Regulators oversee the auction market to ensure fair practices. They protect investors, monitor manipulation, and maintain trust in the trading system.

    Example of Auction Trading in the Share Market

    Assume a stock opens near ₹200. Some investors feel the price is low and start placing buy orders at ₹198 and ₹199. At the same time, existing holders believe the stock deserves a higher value. In such a case, they place sell orders at ₹201 and ₹202.

    At this stage, no trade happens. This is because buyers and sellers do not agree on price. Now, say more buyers enter. Then one buyer raises the bid to ₹201. A seller accepts this price, and the trade is executed. This price becomes the new spot price.

    If buying interest continues, prices move higher. If sellers dominate later, prices fall. This ongoing adjustment is auction trading, where prices are discovered through demand and supply, as described by auction market theory.

    Auction Market vs. Order-Driven Market

    At first glance, an auction market and an order-driven market may seem different, but in practice, they are closely linked. Still, there are some clear structural differences worth understanding, especially for traders.

    Basis of ComparisonAuction MarketOrder-Driven Market
    MeaningA market where prices are discovered through continuous bidding between buyers and sellers.A market where trades are executed by matching buy and sell orders through an electronic order book.
    Price FormationPrices change based on demand and supply imbalance, following auction market theory.Prices are formed through automatic order matching using price and time priority.
    Trading MechanismFocuses on auction trading, where participants negotiate value through bids and offers.Focuses on order execution, where the system matches existing orders.
    Role of ParticipantsBuyers and sellers actively influence price movement by adjusting bids and asks.Participants place orders, but the system decides execution without negotiation.
    Market TransparencyHigh transparency as bids and offers reflect real-time market interest.High transparency through visible order book and execution rules.
    Liquidity SourceLiquidity comes from active participation of buyers and sellers.Liquidity depends on the number and depth of orders in the order book.
    Use in Share MarketExplains how prices move and settle during trading hours.Explains how trades are processed on the exchange platform.

    Read Also: Different Types of Trading in the Stock Market

    Conclusion

    An auction market explains how prices are discovered. In other words, it says that constant interaction between buyers and sellers is a must in the market. When combined with an order-driven system, it creates a fair and transparent trading environment. Understanding this structure helps you read price movements better and trade with clarity.

    For more such simplified market concepts and trading insights, explore learning resources and tools on Pocketful to make informed investment decisions.

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    Frequently Asked Questions (FAQs)

    1. What is an auction market in simple terms?

      It is a market where prices are decided through bidding. This is attained by the match of the buyers and sellers, not fixed in advance.

    2. What is auction trading in the share market?

      Auction trading is the process where buy and sell orders compete to discover the market price.

    3. Is the Indian stock market an auction market?

      Yes, Indian exchanges follow auction market principles. They do this by using an order-driven trading system.

    4. What is auction market theory used for?

      It helps traders understand price discovery. This helps bring in clarity on the balance and the imbalance in the market.

    5. How is liquidity shown in auction trading?

      Liquidity is reflected through bid-ask spread and trading volume.

  • Top Green Hydrogen Stocks in India

    Top Green Hydrogen Stocks in India

    In India’s clean energy narrative, green hydrogen is gradually establishing its presence as the country attempts to decrease its dependence on foreign fuels and reduce emissions. Green hydrogen is expected to be one of the long-term practical alternatives for sectors where renewable electricity by itself will not be enough. With strong government backing, it is transitioning from a planning stage to operational activity, thus creating investment opportunities for those interested in the growth potential of India’s energy future.

    In this blog, we will explore how green hydrogen is emerging as a key pillar in India’s clean energy transition and the investment opportunities it presents as government support turns long-term plans into real, on-ground progress.

    What is Green Hydrogen? 

    Green hydrogen is a type of hydrogen fuel that is made from renewable energy sources like solar or wind power. It does not produce any carbon emissions when it is made, which is better for the environment.

    The process is easy. Electricity converts water (H₂O) into hydrogen and oxygen. This process is called electrolysis . Green hydrogen comes from renewable sources of electricity. The oxygen is released into the air, and the hydrogen is stored and used as fuel later.

    Why Do They Call It “Green”?  The process is clean and therefore called green hydrogen. There are no fossil fuels used, and no harmful gases are released.   

    An Overview of the Green Hydrogen Industry in India 

    By 2047, India wants to be energy-independent and have net-zero emissions. To do this, we need to cut down on pollution and fossil fuel imports. Green hydrogen fits this vision perfectly because it is a clean alternative to traditional renewable energy.

    India is also looking into producing hydrogen from biomass, like agricultural waste. This could help farmers and boost rural incomes at the same time.

    One of the most important things about green hydrogen is that it can help clean up sectors that are hard to decarbonize. Electricity alone does not always provide industries like steel, fertilizers, chemicals, and heavy transport the fuel they need. Green hydrogen is a cleaner choice here.

    India can make hydrogen from its own renewable resources, which will help the country depend less on oil and gas from other countries. This makes the energy system less likely to be affected by sudden changes in global prices.

    The government has initiated the National Green Hydrogen Mission with a substantial funding of 19,744 crores, aiming for a production capacity of 5 million tonnes per annum to accelerate progress. The goal is to build large-scale production capacity, encourage involvement of private companies, and position India as a global hub for green hydrogen in the future.

    Read Also: Top Green Building Material Stocks in India

    List of Best Green Hydrogen Stocks Based on Market Capitalisation 

    S. No.CompanyCMP (In INR)Market Capitalization (In Crores)52-Week High (In INR)52-Week Low (In INR)
    1RELIANCE1,54520,90,9031,5811,115
    2LARSEN & TOUBRO4,0605,58,6854,1402,965
    4NTPC3213,11,505371293
    3ONGC2332,92,944274205
    6INDIAN OIL CORPORATION1682,37,647174111
    7POWER GRID CORPORATION2612,42,746329247
    5ADANI GREEN1,0211,68,2021,179758
    9BHARAT PETROLEUM3681,59,917382234
    8GAIL INDIA1691,11,178203151
    10JSW ENERGY47583,002701419
    (Data as of 19 Dec, 2025)

    Overview of Top Green Hydrogen Companies 

    1. Reliance 

    As part of its clean energy plans, Reliance is making significant investments in green hydrogen. The company intends to develop everything internally, including hydrogen production, electrolyser manufacturing, and renewable energy. Reliance wants to make green hydrogen widely available and reasonably priced in the long run, not just as a test project.

    1Y Return (%)3Y Return (%)5Y Return (%)
    28.86%25.90%62.06%
    (data as of 19 Dec, 2025)

    2. Larsen & Toubro 

    L&T doesn’t make hydrogen directly, but it does a considerable amount of significant operations behind the scenes. The company uses its engineering and project management skills to build hydrogen plants, electrolysers, and infrastructure. L&T is a key supplier and technology partner in the green hydrogen ecosystem in India, so it will benefit as more green hydrogen projects get started.

    1Y Return (%)3Y Return (%)5Y Return (%)
    12.25%98.11%223.09%
    (data as of 19 Dec, 2025)

    3. NTPC 

    NTPC is gradually transitioning to green hydrogen through renewable energy-related pilot projects. It is exploring the potential applications of hydrogen in transportation, power generation, and storage. NTPC is adopting a steady and long-term approach due to its significant renewable resources and strong government support.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -2.86%98.83%228.87%
    (data as of 19 Dec, 2025)

    4. Oil & Natural Gas Corporation 

    By exploring green hydrogen and renewable energy sources, ONGC intends to go beyond oil and gas. Reducing emissions and getting ready for a cleaner future are the goals. The change shows that even conventional energy companies are gradually adjusting to the energy transition.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -1.83%69.13%160.41%
    (data as of 19 Dec, 2025)

    5. Indian Oil Corporation 

    Green hydrogen is primarily being considered by Indian Oil as a means of improving refinery operations. To reduce emissions, the company is installing hydrogen units that function on renewable energy. IOC may eventually rank among India’s biggest consumers of green hydrogen due to its extensive refining network.

    1Y Return (%)3Y Return (%)5Y Return (%)
    18.79%124.21%178.49%
    (data as of 19 Dec, 2025)

    6. Power Grid Corporation 

    Power Grid plays a more invisible but significant role in green hydrogen. Strong transmission infrastructure becomes crucial as hydrogen production and renewable energy grow. Additionally, hydrogen-based energy storage is being tested by the company.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -14.8669.43%151.24%
    (data as of 19 Dec, 2025)

    7. Adani Green Energy 

    Adani Green’s main goal is to build a significant number of solar and wind power plants, which will help the Adani Group’s green hydrogen plans. The company is building up its renewable base first, instead of jumping right into producing hydrogen. This combined approach could be very important for making hydrogen production possible on a large scale.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -1.46%-43.64%-2.44%
    (data as of 19 Dec, 2025)

    8. Bharat Petroleum Corporation 

    As part of its shift to clean energy, BPCL is testing green hydrogen at its refineries. These projects are still in the planning stages, but they exhibit that they want to cut down on emissions and reduce their dependence on fossil fuels.

    1Y Return (%)3Y Return (%)5Y Return (%)
    28.24%128.08%98.05%
    (data as of 19 Dec, 2025)

    9. Gail India

    GAIL is primarily investigating green hydrogen from the perspective of distribution and transportation. It is investigating the safe transportation of hydrogen and testing the blending of hydrogen in gas pipelines. In the future, GAIL’s vast pipeline network may play a significant role in connecting hydrogen producers and industrial consumers.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -11.22%88.09%118.44%
    (data as of 19 Dec, 2025)

    10. JSW Energy 

    JSW Energy is closely monitoring green hydrogen prospects and expanding its renewable portfolio. The company is investigating possible applications of hydrogen in energy storage and industrial applications. Its emphasis on clean energy and group-level demand gives it a good reason to look into this domain.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -26.50%91.41%603.19%
    (data as of 19 Dec, 2025)

    Read Also: Best Hydropower Stocks in India

    Key Performance Indicators 

    S. noCompanyROE (in %)ROCE (in %)Debt-to-EquityP/E (x)
    1RELIANCE8.49.690.4327.6
    2LARSEN & TOUBRO16.614.51.3234.9
    3NTPC12.19.951.3313.1
    4ONGC10.6120.488
    5INDIAN OIL CORPORATION6.517.360.749.41
    6POWER GRID CORPORATION1712.81.3716.1
    7ADANI GREEN14.68.74.5276.8
    8BHARAT PETROLEUM17.316.20.567.38
    9GAIL INDIA13.1140.2512.4
    10JSW ENERGY7.416.492.3741.3

    Reasons to Invest in Green Hydrogen Stocks

    1. Early-stage opportunity – Green hydrogen is still developing, which means long-term investors are getting in early rather than chasing an already successful trend.
    2. Strong government Support – India is actively supporting green hydrogen through policies and long-term targets, giving the sector a growth direction.
    3. Export potential in the future – As global demand grows, India could become a supplier of green hydrogen, creating new growth opportunities.
    4. Portfolio diversification –  Green hydrogen stocks offer diversification to your portfolio and exposure to a future-oriented energy theme, which is a bit different from traditional sectors.

    Conclusion 

    India’s green hydrogen journey has just begun and will need time to develop. This investment theme is not likely to provide instant returns. Rather, it is a theme that demands patience for the results we want. However, with adequate government support and policies in place, green hydrogen should grow in both industrial consumption and through the entry of developed companies. If you believe that India will eventually transition to clean energy, investing in green hydrogen stocks represents an opportunity to participate in this transformation over the longer term.

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    Frequently Asked Questions (FAQs)

    1. Why is green hydrogen important for India? 

      It helps reduce carbon emissions, cut fuel imports, and support India’s clean energy goals. 

    2. Is green hydrogen a short-term investment option? 

      No, it is a long-term investment theme that may take years to fully develop. 

    3. Which sectors will use green hydrogen the most?

      Steel, cement, fertilisers, refineries, and heavy transport are expected to use hydrogen the most.

    4. How does green hydrogen differ from solar or wind energy?

      Hydrogen can store energy and power heavy vehicle industries where direct electricity is not practical. 

    5. Can retail investors invest in green hydrogen stocks? 

      Yes, with long-term view and proper portfolio diversification, investors can invest. 

    Selection Methodology and Important Disclaimer

    The stocks included in this list are selected primarily on the basis of their market capitalisation, which represents the total market value of a company’s outstanding shares. The companies are arranged in descending order of market capitalisation, with larger companies appearing first, followed by relatively smaller companies. This methodology is intended to provide a structured approach for identifying companies based on their market size and overall presence within a sector.

    However, market capitalisation should not be considered the sole factor while evaluating investment opportunities, as it does not guarantee future performance, profitability, or returns. Investors should also assess other important factors such as financial health, business fundamentals, management quality, valuation metrics, industry outlook, and market conditions before making investment decisions.

    The information provided is for educational and informational purposes only and should not be construed as investment advice, recommendation, solicitation, or an offer to buy or sell any securities by Pocketful Fintech Capital Private Limited.
  • Ashish Dhawan Portfolio : Top Holdings, Strategy & Lessons

    Ashish Dhawan Portfolio : Top Holdings, Strategy & Lessons

    Ashiah Dhawan is one of the most prominent players in the Indian stock market who is respected by many. Unlike most day traders that buy, then sell shares daily for short-term profit, Mr. Dhawan has a different approach. He has a long-term view and makes large investments into individual company stocks and will typically hold onto those stocks for several years. In the year 2025, his portfolio has been in the news for making some bold moves. He has bought new stocks, sold some old winners, and held onto companies that are going through big changes.

    In this blog, you will get to know his investment style, top holdings, and the simple lessons that can be learnt from his portfolio. 

    About Ashish Dhawan

    A Strong Foundation

    Ashish Dhawan has always focused on excellence. He studied at Harvard and Yale Business School in the USA, the 2 best universities in the world. After his studies, he worked on Wall Street, learning how the world of global finance works.

    The ChrysCapital Success

    In 1999, he returned to India and cofounded a company called ChrysCapital. It was a Private Equity firm and under his leadership, ChrysCapital emerged as one of the most successful firms in India, investing in big names like Spectramind and Suzlon.

    A Shift to Philanthropy

    In 2012, he quit the corporate world to focus on social work. He set up the Central Square Foundation to improve school education in India and assisted with building Ashoka University. Today, he invests his own money to fund these charitable causes. This means he invests to create long-term wealth that can help society, not just to make a quick buck.

    Investment Journey fo Ashish Dhawan

    Most people in the stock market panic when the stock price falls. That is different from Ashish Dhawan, who comes from a background of Private Equity.

    You cannot sell your shares just because the market is down when you run a firm in private equity. You are “locked in” for years which then forces you to be patient. You focus on the business, not the stock price. Even though Ashish Dhawan now buys stocks in the public market – where he can sell any time, he still acts like he is locked in.

    He looks for companies undergoing some kind of “transformation.” An example could be a bank cleaning up its bad loans or a company breaking itself up into smaller parts. These changes often take 3 to 5 years. He is willing to wait while other investors get bored and leave. This patience is his “secret weapon.

    Ashish Dhawan Investment Strategy

    The “Barbell” Strategy

    Dhawan balances his portfolio,he buys stable companies that grow slowly but surely, such as Greenlam Industries, which makes laminates for homes. He buys riskier companies that can grow very fast, such as IDFC First Bank. This balance ensures that even if one risky bet fails, the safe bets keep his portfolio steady.

    Focus on “Mid-Cap” Companies

    He rarely buys giant companies like Reliance or TCS as these are the most prominent companies of the market. Instead, he looks for “Mid-Cap” companies medium-sized businesses (worth Rs.2,000 to Rs.20,000 Crores). These companies are big enough to be safe but small enough to still double or triple in size.

    Concentration: Bet Big

    He does not scatter his money across 50 different stocks. He usually holds only 12 to 15 stocks. He believes that if you have done your homework and found a great company, you should invest a meaningful amount of money in it.    

    Read Also: 10 Top Investors In India And Their Portfolios

    Top Holdings of Ashish Dhawan

    Stock NameHolding (%)Value (Cr)3M Returns (%)
    IDFC First Bank1.3%788.922.03%
    M&M Financial1.1%586.19.95%
    Religare Ent.4.1%340.6-0.91%
    Equites Small Finance bank4.0%283.28.93%
    AGI Greenpac4.8%233.2-10.83%
    Greenlam Industries3.8% 232.1-0.09%
    Quess Corp.4.1%126.2-18.87%
    RPSG Ventures3.7%92.3-11.56%
    (Data as of January 2025)

    1. IDFC First Bank Ltd.

    IDFC First Bank Ltd. has been changing from a corporate bank (lending to big factories) to a retail bank (lending to common people). This takes a lot of time and money. While the stock price has been up and down, Dhawan increased his stake in late 2025. This shows he is confident the bank is now ready to make good profits.    

    2. Mahindra & Mahindra Financial Services Ltd.

    Ashish Dhawan holds a meaningful stake in Mahindra & Mahindra Financial Services Ltd., a rural-focused NBFC aligned with the Mahindra ecosystem. The company caters to underserved borrowers, especially in tractors and utility vehicles. Despite cyclical stress, Dhawan’s continued holding reflects confidence in long-term rural recovery, asset-quality improvement, and steady compounding potential.

    3. Religare Enterprises Ltd.

    Religare Enterprises this company owns Care Health Insurance, which is a very strong business. Religare had some trouble with its old owners years ago, but the new management has transformed the business. Dhawan is waiting for the market to realize the true value of the health insurance business hidden inside this company.

    4. Equitas Small Finance Bank Ltd.

    Equitas Small Finance Bank lends money to small shop owners, truck drivers, and micro-entrepreneurs. These are big banks that are usually ignored by the people. It is a risky business, but it earns high interest. In late 2025, Dhawan bought more shares of Equitas, showing he thinks the stock is currently available at a cheap price.    

    5. AGI Greenpac Ltd.

    The world is moving away from plastic bottles so AGI Greenpac made glass bottles for medicines, food, and drinks. Dhawan is betting that as plastic gets banned, demand for glass will shoot up, resulting in a better future for the company. 

    6. Greenlam Industries Ltd.

    Ashish Dhawan holds a stake in Greenlam Industries Ltd., a leading player in laminates and surface solutions. The company benefits from housing upgrades, premiumisation, and export demand. Dhawan’s holding reflects confidence in Greenlam’s strong brand, improving margins, and long-term growth from construction and interior trends.

    7. The Quess Corp Split (The “Hidden” Value)

    In 2025, Quess Corp split into three separate companies to unlock value. Handles technology and business processing and also handles facility management (like security guards and housekeeping services). If you look at the stock price of just Quess Corp, it looks like it crashed. But it didn’t, the value just moved into Digitide and Bluspring. Dhawan held his shares through this split because he believes these businesses run better separately.    

    8. RPSG Ventures Ltd.

    Ashish Dhawan holds a stake in RPSG Ventures Ltd., a company incubating and scaling consumer, technology, and lifestyle businesses. While near-term volatility exists, Dhawan’s investment reflects confidence in value unlocking through demergers, brand-building, and long-term growth across emerging segments.

    What Changed in Portfolio?

    He had invested in Glenmark Pharmaceuticals way back in 2019 but he sold Glenmark Pharma in 2025. For years, it did nothing, but in 2024-25, the price started to shoot up which was seen as an opportunity. Dhawan sold most of his shares, reducing his stake below 1% to book his profits. He followed the rule of buying at low and selling at high price. 

    In late 2025, when the market was worried about banks, he bought more shares of IDFC First and Equitas. He is not scared by any short-term adverse news.

    One of the changes he supported is splitting Quess Corp. He prefers simple and focussed companies over complicated giants doing too many things.

    Key Takeaways 

    1. Patience Pays: Patience is the biggest lesson that we can learn from Dhawan. He held stocks like Glenmark and IDFC First Bank for 5 or 6 years. In the stock market, money moves from the impatient to the patient so one should not expect to get rich in a  month.
    2. Understand What You Buy: Dhawan invests heavily in Banks and Financial companies because he understands them well. He does not chase every new trend like AI or crypto if he doesn’t understand it so stick to what you know.
    3. Don’t Panic Over Headlines: Misleading Headline – For example, news reports stated “Quess Corp Crashes,” when it actually was only splitting into three separate companies. Therefore, you should always dig deeper and be sure to do your due diligence before selling off any stock during panic.
    4. Invest in “Boring” Companies: The Laminates Business is a “boring” business, and Glass Bottles are also boring. The same is for the staffing companies; they are all “boring.” However, “boring” can be a profitable way to do business, and as such, Greenlam Industries (laminates) is still one of the more consistent stocks in my portfolio.

    Read Also: Big Bulls of Indian Stock Market: The Complete List

    Conclusion

    Ashish Dhawan’s portfolio is a bet on the future of India. He thinks more Indians will take loans (Banking), more Indians will improve their homes (Greenlam), and more Indians will get formal jobs (Quess).

    He doesn’t play the game of daily trading. He is planting seeds and some of those seeds grow up into trees and he takes the fruit, like Glenmark. Other seeds are growing, like Equitas and IDFC.

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    Frequently Asked Questions (FAQs)

    1. What is the value of Ashish Dhawan’s portfolio? 

      As of late 2025, the value of his public stock portfolio is estimated to be between Rs.2,800 Crore and Rs.3,500 Crore. This value changes daily as stock prices move up and down.

    2. Why did Ashish Dhawan’s investment in Quess Corp seem to drop?

      It was not a loss as Quess Corp split into three separate companies (Quess, Digitide, and Bluspring). Dhawan still owns shares in all three. The value just got divided across three different stocks instead of one.    

    3. Did Ashish Dhawan sell Glenmark Pharmaceuticals? 

      In the late 2025 he sold a large part of his holding. He reduced his stake below 1%. This was likely to book profits after the share price surged significantly.

    4. What new stock did he buy in 2025? 

      His major new purchase was Northern ARC Capital, a financial services company and bought a stake of around 2.17%.    

    5. Which sector is his favorite?

      The most preferred sector was the Financial Sector. A large part of his money is invested in banks and finance companies like IDFC First Bank, Equitas Small Finance Bank, Religare, and M&M Finance.

  • Top 10 Wind Energy Stocks in India

    Top 10 Wind Energy Stocks in India

    India’s clean energy transition is accelerating, and wind power continues to play a critical role in meeting rising electricity demand while reducing carbon emissions. Strong government support, improving technology, and corporate decarbonisation goals have positioned wind energy as a long-term structural theme for investors.

    With strong wind corridors across Tamil Nadu, Gujarat, Maharashtra, and Karnataka, India remains one of the world’s leading wind power markets. For long-term investors, wind energy stocks in India offer policy backing, predictable revenues through PPAs, and exposure to the country’s renewable growth story.

    This guide covers the top wind energy stocks in India, key investment factors, financial metrics, risks, and suitability for different investor profiles.

    Factors to Consider Before Investing in Wind Energy Stocks

    Key financial, operational, and policy-related factors that help evaluate the stability and growth potential of wind energy companies.

    1. The business model of the company – Some businesses own and run wind farms, some manufacture turbines, and some do both. Knowing how a business generates revenue enables you to evaluate risk and stability.
    2. Debt Levels and Financial Health – Wind projects require a large initial investment of funds. Examine the company’s cash flows, debt levels, and ability to repay its loans.
    3. PPAs, or power purchase agreements – Revenue from long-term PPAs is predictable. Verify the buyer’s identity (government or corporate) and the duration of the contract.
    4. Operational Performance History – Execution is important. Companies with a track record of timely project completion and effective asset maintenance typically do better.
    5. Efficiency & Technology – Over time, power output and profitability can increase with larger, more efficient turbines. Innovations in technology are encouraging.

    List of the Top 10 Wind Energy Stocks in India 

    A curated list of India’s leading wind energy companies offering long-term exposure to the country’s renewable power growth.

    S. NoCompany NameMarket Cap (in crores)CMP (in ₹)52-W High (in ₹)52-W Low (in ₹)
    1Reliance21,33,4611,5771,5901,115
    2NTPC3,25,905336371293
    3Adani Green Energy1,69,0991,0271,179758
    4Tata Power1,21,822381417326
    5Suzlon Energy71,112527446
    6Inox Wind21,223123198118
    7KPI Green Energy9,704492589313
    8K.P. Energy2,329348584327
    9Orient Green Power1,357121711
    10Indowind Energy Solutions245152814
    (Data as of 6st January, 2026)

    Read Also: Best Green and Renewable Energy Penny Stocks

    Wind Energy Stocks Company Overview and Historical Returns

    A brief business-level understanding of each company’s role, strategy, and position within India’s wind energy ecosystem.

    1. Reliance 

    Although Reliance Industries is not solely a wind energy stock, its shift into renewable energy has generated considerable interest. The company has announced investments in clean energy, such as solar and wind, as part of its energy transition strategy. Reliance’s renewable push, supported by substantial financial resources and a long-term vision, has the potential to transform the industry eventually.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    24.26%32.17%75.19%
    (Data as of 6st January, 2026)

    2. NTPC 

    Traditionally linked to thermal power, NTPC is India’s biggest power producer. However, its green energy segment has completely shifted toward renewable energy over the last few years. An essential component of this shift is wind power. NTPC holds a strong balance sheet, execution scale and is backed by the government, which gives the company a benefit in adding renewable capacity while gradually reducing dependence on fossil fuels. 

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    7.05%102.04%239.52%
    (Data as of 6st January, 2026)

    3. Adani Green Energy 

    Adani Green Energy is one of India’s biggest companies offering renewable energy. It has an extensive portfolio of wind and solar assets. The company started in 2015 and quickly grew by acquiring operational projects and building new capacity across the country. It focuses on long-term power purchase agreements, which ensure that revenue is stable. Adani Green has become a major player in India’s transition to renewable energy over time. Wind energy is a big part of its diverse portfolio.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    -1.92%– 46.62%-3.62%
    (Data as of 6st January, 2026)

    4. Tata Power 

    One of the oldest electricity providers in India, Tata Power is well-established in the fields of distribution, transmission, and generation. It has rapidly added wind farms and hybrid projects to its portfolio of renewable energy sources in recent years. The company’s campaign for renewable energy is part of a larger plan to develop a power business that is both sustainable and prepared for the future. Its varied business practices provide stability while exposing investors to the growing use of renewable energy.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    – 2.64%83.58%393.03%
    (Data as of 6st January, 2026)

    5. Suzlon Energy 

    Suzlon Energy is one of the most established and well-known brands in India’s wind energy history. The company was established in the middle of the 1990s and played a key role in the country’s adoption of wind power. Suzlon still has one of the biggest installed wind bases in India despite having experienced financial difficulties in the past. As a major legacy player in the industry, the company still concentrates on turbine supply, project execution, and operations support.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    – 11.82%388.09%726.30%
    (Data as of 6st January, 2026)

    6. Inox Wind Limited 

    Known for producing wind turbine generators and offering full EPC and maintenance services, Inox Wind is a wind energy company. It has developed strong internal manufacturing capabilities and a national project execution footprint over the years. In order to reduce power costs and increase wind project returns, the company is still working to improve turbine size and efficiency.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    -31.1%377.1%709%
    (Data as of 6st January, 2026)

    7. KPI Green Energy 

    Another expanding renewable energy company that works on solar and wind projects is KPI Green Energy. The business creates and runs power plants under long-term agreements that ensure steady cash flows. KPI has steadily strengthened its position in the renewable ecosystem by extending its project base over several states over time. For investors who want to invest in the industry’s long-term growth narrative, it continues to be a good small-cap choice.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    – 11.77%910.93%3,366.07%
    (Data as of 6st January, 2026)

    8. K.P. Energy 

    K.P. Energy is a mid-sized renewable energy company that mostly works on developing and running wind power. It owns and operates wind farms in important parts of India that are rich in resources. The company is steadily growing by adding capacity while keeping a close watch on operational efficiency. The company gives exposure to investors who are interested in India’s wind energy segment and want to explore options beyond large-cap stocks.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    – 35.80%1,456.8%5,595.9%
    (Data as of 6st January, 2026)

    9. Orient Green Power Company 

    Orient Green Power uses renewable energy sources like wind and biomass. The company focuses on long-term power sales agreements to make sure its assets bring in money all the time. The company gives you an array of options in clean energy. Its emphasis on operational efficiency makes it an interesting niche name within the wind energy space.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    – 26.27%21.92%646.45%
    (Data as of 6st January, 2026)

    10. Indowind Energy Solutions 

    IndoWind Energy is one of India’s oldest renewable energy companies. It builds and operates wind farms that generate clean power for utilities and businesses. The company started in 1995 with a small wind project in Tamil Nadu. Now it owns, runs, and maintains wind energy assets in southern states. It has also provided project management and windmill maintenance services over the years, helping others establish and run wind power projects as well.

    Know the Returns

    1 Year Return (%)3 Year Return (%)5 Year Return (%)
    – 36.33%12.55%311.41%
    (Data as of 6st January, 2026)

    Read Also: Top Green Building Material Stocks in India

    Key Performance Indicators (KPIs)

    CompanyNet Profit Margin (%)PE Ratio (x)ROCE (in %)ROE (in %)Debt to Equity
    Reliance8.3724.78.78.250.41
    NTPC11.517.69.412.71.34
    Adani Green Energy13.8113.38.0213.477.29
    Tata Power6.0830.210.1811.071.62
    Suzlon Energy19.0237.2824.15340.05
    Inox Wind12.359.312.510.450.34
    KPI Green Energy18.7425.1713.0813.180.46
    K.P. Energy12.3621.410.1811.071.62
    Orient Green Power15.943573.600.50
    Indowind Energy Solutions  3.771491.830.450.03
    (Data as of 6st January, 2026)

    Who Should Invest in Wind Energy Stocks 

    An overview of investor profiles best suited for wind energy investments based on risk appetite and time horizon.

    1. Long-Term Investors – Investors who are willing to think long-term and ride out the ups and downs are best suited for wind energy stocks. This industry doesn’t always move quickly, but over time, it can reward people who are consistent and have self-belief.
    2. ESG-centric Investors – Wind energy stocks are also a good choice for investors who want to add more sustainable and ESG-focused themes to their portfolios. But they are not for traders who want to make quick money. These stocks tend to do better when held through cycles, as projects get older and more capacity is added.

    Risks of Investing in Wind Energy Stocks

    Potential challenges and uncertainties that may impact returns in the wind power sector.

    1. Changes in Policies & Regulations – Wind energy is closely linked to government support. Any changes in tariffs, subsidies, or bidding rules can affect company earnings and stock prices.
    2. High Initial Investment – Setting up wind projects requires heavy upfront capital. This often leads to higher borrowing, which can put pressure on finances during slow periods.
    3. Delays in Project Execution – Land acquisition issues, regulatory approvals, or equipment delays can slow down projects and impact expected returns.
    4. Dependence on Wind Conditions – Power generation depends on wind availability. Poor wind seasons or regional variations can reduce electricity output.
    5. Pressure on Profit Margins – Competitive bidding for new projects can lower tariffs, which may reduce profitability over time.

    Read Also: Best Sectors to Invest in Next 10 Years in India

    Conclusion 

    Wind energy might not always be in stories, but it is still an important part of India’s renewable energy future. People who are willing to be patient and look for good companies, wind energy stocks can be a good addition to a long-term, sustainability-focused portfolio.

    For an easy and seamless, and user-friendly experience – Start investing today with Pocketful

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    Frequently Asked Questions (FAQs)

    1. Are wind energy stocks good for long-term investment? 

      Yes, they can be suitable for long-term investors who believe in the concept of India’s green energy and have patience.

    2. Do wind energy stocks depend on government policies?

      Yes, policies and tariffs play an important role in shaping company profitability and project returns.

    3. What is a wind-solar hybrid project? 

      It is a combination of wind and solar power at the same site to improve power generation consistency.

    4. Can wind energy stocks benefit from ESG investing trends? 

      Yes, rising ESG-focused investing can support long-term demand for wind energy.

    5. Are these stocks suitable for beginners? 

      They are better suited for beginners with a long-term investing approach. 

    Selection Methodology and Important Disclaimer

    The stocks included in this list are selected primarily on the basis of their market capitalisation, which represents the total market value of a company’s outstanding shares. The companies are arranged in descending order of market capitalisation, with larger companies appearing first, followed by relatively smaller companies. This methodology is intended to provide a structured approach for identifying companies based on their market size and overall presence within a sector.

    However, market capitalisation should not be considered the sole factor while evaluating investment opportunities, as it does not guarantee future performance, profitability, or returns. Investors should also assess other important factors such as financial health, business fundamentals, management quality, valuation metrics, industry outlook, and market conditions before making investment decisions.

    The information provided is for educational and informational purposes only and should not be construed as investment advice, recommendation, solicitation, or an offer to buy or sell any securities by Pocketful Fintech Capital Private Limited.
  • Best Sectors to Invest in Next 10 Years in India

    Best Sectors to Invest in Next 10 Years in India

    Over the next 10 years, several sectors in India are expected to witness consistent growth. Government policies, increasing investment, and changing consumer needs are driving these sectors forward. Therefore, when investing, it’s crucial to understand which sectors offer the most opportunities in the coming years. 

    This article will provide clear and practical information on the best sectors to invest in for the next 10 years, enabling long-term investors to make informed decisions.

    Top 10 Sectors to Invest in Next 10 Years in India

    1.  Information Technology (IT) & Digital Services Sector

    India’s IT sector is no longer limited to just software services. Today, companies are focusing more on cloud, data, automation, and digital tools, and India’s role in this is quite strong. Foreign companies trust the skills and delivery capabilities here, which ensures a continuous flow of IT-related work. Businesses within the country are also rapidly digitizing, maintaining strong domestic demand.

    Key Growth Drivers

    • Global companies’ spending on digital transformation
    • Growing need for cloud, data, and automation
    • Stability of the export-based revenue model
    • Skilled workforce and cost advantage

    Key Risks

    • Impact of a global slowdown on IT spending
    • Impact of currency fluctuations
    • Risk of rapid technological changes
    • Pricing pressure and competition

    Top 5 IT & Digital Services Stocks 

    2. Fintech & Digital Financial Services Sector

    The way financial services are delivered in India is changing rapidly. People are now using mobile apps directly for banking, payments, insurance, and investments. UPI, online insurance, and digital investing platforms have enabled the fintech sector to reach the masses. Financial products have become more accessible to people in smaller cities and new users, leading to a continuous increase in demand for this sector. In the future, the role of fintech is expected to become even stronger alongside traditional finance.

    Key Growth Drivers

    • Growing adoption of UPI and digital payments
    • Demand for insurance, lending, and investment platforms
    • Increase in the number of smartphone and internet users
    • Financial inclusion and paperless processes

    Key Risks

    • Risk of changes in regulatory rules
    • Time required to achieve profitability
    • Pressure due to high competition
    • Issues related to cybersecurity and data safety

    Top 5 Fintech Stocks 

    3. Renewable Energy Sector

    Electricity demand in India is increasing every year, and with it, the importance of renewable energy is becoming increasingly clear. The government is gradually shifting away from traditional power sources and focusing more on solar and wind energy. Large industrial companies are also adopting clean energy because it provides them with a stable power supply in the long run. Most renewable power projects operate on long-term contracts, so the income visibility in this sector is better compared to other sectors.

    Key Growth Drivers

    • Continuous increase in electricity consumption in the country
    • Clear policy support from the government for clean energy
    • Corporate companies’ inclination towards green power
    • Significant reduction in the cost of solar and wind power

    Key Risks

    • Policy changes can directly impact projects
    • Execution delays are observed in several projects
    • Issues related to transmission and grid connectivity

    Top 5 Renewable Energy Stocks 

    4. Electric Vehicles (EV) & Battery Sector

    Interest in electric vehicles in India is growing not gradually, but significantly. EV adoption is particularly rapid in two-wheelers, three-wheelers, and commercial vehicles. Rising petrol and diesel prices and concerns about pollution have also driven people to consider EVs. The government is also providing continuous support for EV manufacturing and charging infrastructure, making this sector relevant from a long-term perspective.

    Key Growth Drivers

    • Increasing awareness of fuel costs and pollution
    • Growing demand for two-wheeler and commercial EVs
    • Gradual decline in battery costs
    • Expansion of charging infrastructure
    • Government incentives and localization push

    Key Risks

    • Continuous changes in EV technology
    • Dependency on battery supply and raw materials
    • Charging infrastructure still limited in many areas
    • Risk of changes in subsidy policy

    Top 5 EV & Battery Sector Stocks

    5. Infrastructure & Capital Goods Sector

    Infrastructure development in India shows no signs of slowing down. The government is continuously investing in projects such as roads, railways, airports, and ports, as a strong infrastructure is crucial for economic growth. In recent years, it has become clear that government capital expenditure is the biggest driver of this sector. Private companies are also investing in logistics, housing, and industrial projects, providing a steady stream of work for infrastructure-related companies.

    Key Growth Drivers

    • Continuous government spending on roads, railways, and urban projects
    • Growing need for logistics and industrial expansion
    • Infrastructure demand naturally increases as the economy grows
    • Long-term projects provide consistent work visibility

    Key Risks

    • Many projects are not completed on time
    • Payment delays and working capital problems
    • Rising raw material prices impact margins
    • Difficulties in obtaining approvals and land acquisition

    Top 5 Infrastructure Sector Stocks 

    6. Healthcare & Pharmaceuticals Sector

    Healthcare needs in India are increasing every year. Treatment is becoming more expensive, awareness of diseases has increased, and people are now paying more attention to preventive health. As a result, the demand for hospitals, diagnostics, and medicines is continuously growing. Since Covid-19, there has also been a greater focus on healthcare infrastructure, which is strengthening the long-term demand for this sector.

    Key Growth Drivers 

    • Growing population and lifestyle-related diseases
    • Increasing demand for hospitals and diagnostic services
    • Strong demand for generic and specialty medicines
    • Support from both domestic and export markets

    Key Risks

    • Impact of government price controls on margins
    • Delays in regulatory approvals
    • Rising competition in healthcare services
    • Impact on profitability due to cost pressures

    Top 5 Healthcare & Pharma Stocks

    7. FMCG & Consumer Sector

    The demand for everyday essentials in India is ever-present. Food and beverages, personal care products, and household items are necessities in every home. As incomes rise and consumption increases in both cities and smaller towns, the FMCG and consumer sector benefits. Organized brands have now extended their reach to villages, ensuring that demand in this sector remains quite stable.

    Key Growth Drivers

    • Growing population and consistent demand for daily-use products
    • Urbanization and improved income levels
    • Increased reach of organized brands to smaller towns
    • Consumer shift towards premium products

    Key Risks

    • Pressure on margins due to rising raw material costs
    • Reduced pricing power due to intense competition
    • Impact of a slowdown in rural demand
    • High advertising and distribution costs

    Top 5 FMCG & Consumer Sector Stocks 

    8. Manufacturing & Industrial Sector

    The focus on manufacturing in India has clearly increased in recent years. The government wants more goods to be manufactured domestically to reduce imports and create jobs. This has led to the establishment of new factories and expansion in sectors such as auto components, electronics, chemicals, and industrial goods. Global companies are also looking at India as an alternative to diversify their supply chains, which bodes well for the long-term prospects of this sector.

    Key Growth Drivers

    • Initiatives like Make in India and PLI (Production Linked Incentive) schemes
    • Shift of global supply chains towards India
    • Increased demand in the auto, electronics, and industrial sectors
    • Emphasis on export-oriented manufacturing

    Key Risks

    • Fluctuations in raw material prices
    • Impact of global slowdown on exports
    • Pressure due to high capital requirements
    • Execution and capacity utilization risks

    Top 5 Stocks in the Manufacturing & Industrial Sector

    9.  Logistics & Warehousing Sector

    The way goods are transported in India has changed significantly in the last few years. Online shopping, organized retail, and the demand for fast delivery have led to a rapid increase in the need for logistics and warehousing services. Companies are now focusing not only on transportation but also on storage, cold chain logistics, and last-mile delivery. As businesses become more organized, this sector is expected to see continuous growth.

    Key Growth Drivers

    • Expansion of e-commerce and organized retail
    • Increasing demand for warehousing and cold storage
    • Expectations for faster delivery
    • Focus on making supply chains more efficient

    Key Risks

    • Impact of rising fuel costs on operating costs
    • Narrowing profit margins
    • Infrastructure gaps in some regions
    • Pricing pressure due to high competition

    Top 5 Logistics & Warehousing Stocks 

    10. Banking & Financial Services Sector

    In India, the banking and financial services sector is directly linked to economic growth. As people’s incomes rise, so does the demand for savings, loans, insurance, and investment products. In recent years, banks have improved their financial position, and digital banking has significantly expanded their reach. This is why this sector remains relevant for the long term.

    Key Growth Drivers

    • Sustained demand for retail and MSME loans
    • Increasing adoption of digital banking and online services
    • Formalization of the economy and increased credit penetration
    • Growing awareness of insurance and wealth products

    Key Risks

    • Impact of economic slowdown on loan repayments
    • Risk of increasing bad loans (NPAs)
    • Pressure on margins due to interest rate fluctuations
    • Impact of regulatory changes

    Top 5 Banking & Financial Services Stocks

    Read Also: Fastest Growing Industries in India

    Factors Used to Identify Best Sectors

    1. Long-Term Demand Visibility: Sectors where there is a consistent need for the product or service for many years to come are considered suitable for long-term investment. Demand based on temporary trends is not reliable.
    2. Government Policy and Capex Support: Government policies, budget allocations, and infrastructure spending directly support the growth of a sector. Sectors with consistent policy support have lower risk.
    3. Private Investment and FDI Trends: Sectors where domestic and foreign investment is increasing typically indicate future growth potential. Capital flow is a good indicator of a sector’s strength.
    4. Export Potential: Sectors that can establish themselves in the global market are not solely dependent on domestic demand. This leads to more stable growth.
    5. Technology Adoption and Scalability: Sectors that adopt technology tend to expand more rapidly and have the potential to deliver better returns in the long run.
    6. Risk-Adjusted Growth: It’s not just rapid growth that matters, but growth with balanced risk. Sectors with excessive hype often disappoint in the long term.

    Read Also: Top 10 Sectors in the Indian Stock Market

    Conclusion

    Investment opportunities will not disappear in the future; they will simply change. Some sectors will continue to thrive, and that’s where the money will flow. Therefore, it’s crucial to invest wisely and diversify across different sectors, without making hasty decisions. Investors who are patient and don’t constantly change their strategies tend to fare better in the long run.

    Start investing with Pocketful – seamless, easy, and smart investing in one platform.

    Frequently Asked Questions (FAQs)

    1. Which sector is best to invest in for the next 10 years in India?

      Sectors like IT, banking, healthcare, and energy are considered good for long-term investment.

    2. What is the fastest growing industry in India?

      Currently, the renewable energy and EV (electric vehicle) sectors are growing rapidly.

    3. Is sector investing risky?

      Yes, if all your money is invested in a single sector.

    4. How often should investments be reviewed?

      Reviewing them once a year is usually sufficient.

    5. Should beginners follow sector investing?

      Yes, but initially focus on a limited number of sectors and maintain a long-term perspective.

  • Why Tobacco Stocks Are Falling in India: ITC, Godfrey Impact

    Why Tobacco Stocks Are Falling in India: ITC, Godfrey Impact

    Tobacco sector stocks have recently shown weakness, with major names like ITC and Godfrey Phillips experiencing declines. The government has announced a new tax policy for cigarettes and tobacco products, effective February 1, 2026, which includes an additional excise duty along with GST. This change is expected to increase the overall tax burden, potentially impacting companies’ profits and sales, a concern that has made investors cautious.

    Why Are Tobacco Stocks Falling? 

    1. Sudden Fear Over Government’s New Tax Policy: The central government has announced that a new excise duty will be implemented on cigarettes and tobacco products from February 1, 2026, which will be an additional tax on top of the existing GST. This tax has been set at a rate of ₹2,050 to ₹8,500 per 1,000 cigarettes, which is significantly higher than before. This will increase the cost burden on companies and could lead to price increases.
    2. Heavy Selling Increases Investor Fear: Immediately after the announcement of the new tax, ITC shares fell by approximately 8–10%, and Godfrey Phillips shares saw a loss of about 10–19%. This decline also put pressure on the Sensex and the FMCG index in the stock market, as investors factored in the impact on these companies’ future earnings.
    3. Growing Concerns Over Earnings and Profitability: Analysts suggest that the tax increase could lead to higher retail prices for cigarettes and a potential decrease in sales, negatively impacting companies’ margins and EPS. Several brokerage firms have downgraded ITC’s rating or reduced their future forecasts. This fear was directly reflected in the decline in share prices, as investors became uncertain about future earnings.
    4. Policy Uncertainty Affects Credibility: The frequency and scale of changes in tax and GST regulations on cigarettes have increased in recent times. This has left investors uncertain about what further changes might occur in the future. 

    How ITC Is Impacted the Most

    1. Over-reliance on the cigarette business: While cigarettes account for a limited share of ITC’s total revenue, they contribute the most to its profits. A large portion of ITC’s total profit comes from cigarettes, so any increase in taxes directly impacts the company.
    2. Role in funding other businesses: ITC’s FMCG, hotel, and agri-businesses are not yet fully self-sustaining. The cash flow generated from the cigarette business plays a crucial role in running and expanding these businesses. Increased taxes could weaken this support.
    3. Market concerns regarding margins: Following the new tax policy, the market fears that ITC will either have to increase prices or reduce its margins. In either case, profits could be under pressure, even though the company is diversified.
    4. Short-term versus long-term impact: In the short term, ITC’s share price may remain under pressure due to uncertainty regarding earnings. The long-term impact will depend on how effectively the company can pass on the increased taxes and how stable the sales volume remains.
    Why Are Tobacco Stocks Falling

    What Changed in the Cigarette Tax Structure?

    Tax ComponentBefore Feb 1, 2026From Feb 1, 2026
    GST (Goods & Services Tax)Previously, it was primarily subject to 28% GST + Compensation Cess.Now a new slab of 40% GST will be implemented (the compensation cess will be removed).
    Excise DutyPreviously, there was only a small amount of excise duty.The government has now imposed a new excise duty of ₹2,050-₹8,500 per 1000 cigarettes, which is in addition to the GST.
    Compensation CessDifferent cesses were levied on top of GST.The Compensation Cess has been abolished and replaced with a structured duty.
    Overall Effective Tax BurdenPreviously, due to GST + compensation cess, it was approximately 50–53%.Now, with 40% GST + new excise duty, the total burden will be approximately the same or slightly higher, which will make cigarettes more expensive.

    Read Also: List of Best Tobacco Stocks in India

    Godfrey Phillips and Other Tobacco Companies

    1. Limited Pricing Power: Companies like Godfrey Phillips don’t have the same market dominance as ITC. Due to their limited brand presence and distribution network, these companies cannot easily raise prices after tax increases.
    2. Greater Impact on Volumes: Even a slight price increase can directly affect these companies’ sales. Their customer base is more price-sensitive, increasing the risk of a decline in sales volume.
    3. Pressure from Rising Costs: The impact of rising costs of raw materials, packaging, and taxes is felt more acutely by smaller players. Their lack of economies of scale makes it difficult for them to absorb these costs.
    4. High Volatility in Share Prices: Due to their smaller market capitalization and lower liquidity, these stocks experience sharp declines or surges in response to news. This is why stocks like Godfrey Phillips show a much more pronounced reaction compared to ITC.

    What Investors Are Worried About After ITC Share Fall

    1. The extent to which increased taxes can be passed on : The challenge for ITC is determining how much of the increased tax burden can be passed on to consumers through price increases. Too large a price hike could impact demand, while a smaller increase could put pressure on margins.
    2. Potential pressure on sales volume: Cigarette consumption is sensitive to price increases. Investors are concerned that post-tax price hikes could lead to a decline in volume, particularly in lower-price segments.
    3. Questions about demand sustainability: Frequent tax increases reduce the affordability of cigarettes. In the long run, this could limit demand growth for organized tobacco companies.
    4. Focus on cash flow and dividends: ITC’s strong cash flow is primarily derived from its cigarette business. If this comes under pressure, investors become cautious about the sustainability and growth of dividends.
    5. Increased competition from the illicit market: Higher taxes make illegal cigarettes cheaper. This could negatively impact the sales and market share of legal companies.

    What Should Investors Watch Going Forward

    1. Management Strategy on Pricing and Margins: Investors should pay close attention to management commentary from companies, particularly regarding how price increases will be implemented and margins managed in the wake of increased taxes.
    2. Quarterly Sales and Volume Trends: Sales and volume figures for cigarettes in the coming quarters will be crucial. These will reveal the extent of the impact of the tax increase on demand.
    3. Information on Changes in Tax Implementation: Any clarification or modification from the government regarding the timing, rate, or structure of the tax could directly impact share price movements.
    4. Indications Regarding Future Tax Policy: Whether there are indications of further tax increases on the tobacco sector will be important for investor confidence. Any stricter stance could increase volatility in the sector.

    Conclusion

    The decline in the tobacco sector is due to tax-related concerns, not a sudden weakening of the business itself. The full impact of the increased taxes on prices and sales will become clear in the coming months. Currently, the market is reacting to this uncertainty. In such an environment, it’s crucial to focus on facts and company actions rather than market sentiment.

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    Frequently Asked Questions (FAQs)

    1. What tax change did the government implement?

      The government has imposed a new excise duty on cigarettes ranging from ₹2,050 to ₹8,500 per 1,000 sticks, effective February 1, 2026.

    2. Did GST rates on tobacco products change?

      No, there has been no change in the GST rate. The change is only in the additional excise duty.

    3. How much of the retail price is tax now?

      Now, approximately 53% of the retail price of cigarettes goes towards taxes.

    4. Why did ITC shares fall so much?

      ITC shares fell sharply due to concerns about increased costs, reduced margins, and the potential impact on sales as a result of the new duty.

    Selection Methodology and Important Disclaimer

    The stocks included in this list are selected primarily on the basis of their market capitalisation, which represents the total market value of a company’s outstanding shares. The companies are arranged in descending order of market capitalisation, with larger companies appearing first, followed by relatively smaller companies. This methodology is intended to provide a structured approach for identifying companies based on their market size and overall presence within a sector.

    However, market capitalisation should not be considered the sole factor while evaluating investment opportunities, as it does not guarantee future performance, profitability, or returns. Investors should also assess other important factors such as financial health, business fundamentals, management quality, valuation metrics, industry outlook, and market conditions before making investment decisions.

    The information provided is for educational and informational purposes only and should not be construed as investment advice, recommendation, solicitation, or an offer to buy or sell any securities by Pocketful Fintech Capital Private Limited.
  • Book Value vs Market Value of Shares: Meaning, Formula & Key Differences

    Book Value vs Market Value of Shares: Meaning, Formula & Key Differences

    Before investing in shares, everyone is concerned about the valuation of shares, whether they are fairly valued or not, while a few investors focus only on the current market price of the share. Both book value and market value plays an important role in making informed decisions.

    In today’s blog post, we will give you an overview of the book value and market value of shares, along with their key differences.

    What is the Book Value of Shares?

    Book value of a share refers to the net asset value of the company, which is derived after adjusting its liabilities, and it is divided by the total number of outstanding shares. It reflects the value of each share unit, which is calculated based on the company’s financials.

    Features of the Book Value of Shares

    The key features of the book value of the shares are as follows:

    1. Financial Data: The book value of shares is calculated based on the company’s financial information, including assets and liabilities.
    2. Net Worth: It reflects the net worth of the company, which is derived after adjusting for all its liabilities.
    3. Higher the Better: The higher the book value of the company, the better the investment opportunity.
    4. Fundamental Investing: The book value of the company is generally used by the investor for picking right stocks.

    Importance of the Book Value of Shares

    The key importance of the book value of shares is as follows:

    1. Actual Valuation: The book value helps in the identification of the actual value of shares based on the financial statements, which helps an investor in identifying whether the shares are fairly valued or not.
    2. Fundamental Analysis: It helps in analysing a company based on the fundamentals to find out its actual value.
    3. Reduces Risk: Investing in stocks which are trading in a range around its book value is considered a safe bet by investors.
    4. Strength: If the book value of the companies is increasing over a period, it reflects the effective management and strong financials and growth in the company.

    Formula to Calculate the Book Value of Shares

    The formula to calculate the book value of a share is as follows:

    Book Value of Share = (Total Assets – Total Liabilities – Preference Share Capital) / Total Number of Equity Shares Outstanding

    Example of Book Value

    Suppose a company named ABC Limited has a total asset of INR 12 crore, liabilities of 7 crore, and preference share capital of 1 crore and 8 lakh of equity shares.

    Let’s calculate the book value of ABC Limited. 

    By applying the formula 

    Book Value per share = Total Assets – Total Liabilities – Preference Share Capital / Total Outstanding Equity Share

    = (12cr. – 7cr. – 1cr.) / 8lakhs 

    = 4cr. / 8lakhs

    = 50 INR

    Hence, the book value per share is 50 INR.

    Read Also: Intrinsic Value vs Book Value

    What is the Market Value of Shares?

    The market value of a share refers to the publicly traded current price of a share at which the shares of a company are traded on the stock exchange. The market value of shares is derived from the demand and supply of shares, which is influenced by the sentiments of investors, the performance of the company, future growth expectations, etc.

    Features of Market Value of Shares

    The key features of the market value of shares are as follows:

    1. Fluctuations: The market value of shares changes on a real real-time basis; it changes in a fraction of a second depending upon the liquidity of the share.
    2. Demand and Supply: The price discovery is primarily impacted by the demand and supply of the shares by the investor.
    3. Market Capitalisation: The market capitalisation of the company is calculated based on the market value of shares.
    4. Differ from Book Value: The market value of shares can differ from the book value of shares. It can either be higher or lower than the book value, depending on the various factors.

    Importance of Market Value of Shares

    The key importance of the market value of shares is as follows:

    1. Decision Making: The Market value of the company can help an investor in deciding whether to buy, sell or hold the shares. 
    2. Comparison: The market value can also be used by the investor to compare the market value of different shares to make an informed decision.
    3. Market Sentiment: The increasing value of shares represents the positive market sentiment, and vice versa. As market sentiment is a crucial factor for making investment decisions.
    4. Corporate Actions: The market value of shares is significantly impacted by the various corporate actions, such as buybacks, bonus shares, stock splits, etc.

    Difference Between Book Value and Market Value of Shares

    The key difference between book value and market value of shares is as follows:

    ParticularBook ValueMarket Value
    CalculationIt is calculated based on the assets, liabilities of the company.The market value of the company is calculated based on the demand and supply of the shares.
    ChangesBook value is historical in nature.Market value is dynamic and changes on a real real-time basis. 
    ReflectionIt is reflected in the financial statement of the company.The market value of a share is reflected on the stock exchange on which it trades.
    UsageThe book value of a share is generally used by the long-term investor.The Market Value of a share is often used by traders.
    Sentimental ImpactThe book value of the share is not impacted by the sentiment of investors.The market value of a share is highly impacted by the investors’ sentiments.

    Read Also: Stock Market vs Real Estate: Which Is Better?

    Conclusion

    On a concluding note, book value and market value serve different purposes but are equally important for investors to make investment decisions. The book value of the share reflects the financial strength of the company and is calculated based on the assets and liabilities of the company. On the other hand, market value of the company reflects the current share price of the company, which an investor is willing to pay. However, investing based only on the book value or market value of a share is not a sensible decision. One should consult their investment advisor before making an informed decision.

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    Frequently Asked Questions (FAQs)

    1. Which is more important, market value or book value?

      Both market value and book value are equally important; book value helps in assessing the intrinsic value of a share, and market value helps in understanding the sentiment of the investor.

    2. Why book value change over time?

      Book value changes over time based on the company’s profitability, assets, liabilities, etc.

    3. Can the market value of a share be lower than the market value?

      Yes, there are various stocks which trade below their actual book value. This happens because investors think that the actual value of the asset is less than its recorded book value.

    4. Is a stock undervalued if its market value is lower than its book value?

      Not always. A market value lower than book value may indicate undervaluation, but it can also reflect poor business performance, weak future prospects, or sector-specific challenges. Investors should combine this with fundamental analysis.

    5. Why do long-term investors focus more on book value?

      Long-term investors use book value to assess a company’s intrinsic strength, financial stability, and asset backing, making it useful for fundamental and value investing strategies.

  • Why Share Market is Down Today? Reasons Behind Stock Market Fall

    Why Share Market is Down Today? Reasons Behind Stock Market Fall

    Think about a regular market morning. You open your app, expecting a calm start. Instead, prices are slipping one by one. There is no single breaking headline, yet the market feels heavy. This is when the question comes up naturally: why is the market down today.

    Most market falls begin with hesitation, not fear. Investors take a pause and start to reassess the investments. When large players slow their buying, prices drift lower. As selling builds, it starts to look sharper than it actually is. That is when many wonder why the share market went down today, even though the shift started quietly.

    In this blog, we talk about the subtle signals behind such market declines and how to read them calmly, without reacting to noise.

    Reasons Behind the Share Market Down Today

    A market fall often looks sudden, but it usually builds up quietly. Investors start feeling unsure, trading activity slows, and selling increases in phases. This mix of behaviour becomes the reason for market fall today, even when there is no major bad news.\

    Share Market Down Today

    1. Profit Booking Becomes the Easy Choice

    After a strong run, prices begin to look stretched. Investors who entered earlier decide to exit and protect gains. This selling is cautious, not fearful. As more people follow, prices drift lower through the day. At the same time, buyers stay on the sidelines and volumes remain moderate, signalling profit booking rather than panic. Such phases are healthy pauses that help the market reset before the next move.

    2. Global Uncertainty Affects Local Confidence

    Markets across countries are connected by sentiment. Weak signals from global markets make investors hesitant at home. Instead of buying dips, many prefer to wait, which keeps demand low.

    3. Interest Rate Expectations Create Pressure

    Rising rate expectations impact borrowing costs and future earnings. Even without an announcement, this uncertainty makes investors reduce exposure to riskier stocks.

    4. Institutional Activity Drives the Index

    Large institutions trade in volumes that move prices quickly. When they sell or reduce positions, heavyweight stocks fall first, pulling indices down with them. This  creates a ripple effect across the market, even if broader fundamentals remain unchanged. Smaller investors often react after seeing index pressure, which adds to the temporary weakness.

    5. Sector-Level Weakness Spreads

    A fall often starts in one or two key sectors. When banks or IT stocks weaken together, market sentiment turns negative, even if smaller stocks remain steady.

    This is how a normal trading day slowly turns into a market decline. And this is what gives you the answer to why the market is falling today with no need for speculation or guesswork.

    Read Also: 10 Key Factors Affecting the Indian Stock Market Explained

    Major Indian Share Market Crashes and Their Reasons

    Indian markets have seen several sharp falls over the years. Each crash had its own trigger, but the common link was loss of confidence. The major ones that you must know are:

    YearMarket EventDeclines from peak %What HappenedMain Reason for the Fall
    1,992Harshad Mehta Scam50+Stock prices crashed after a long bull run driven by artificial liquidity.Market manipulation using banking funds. Once exposed, trust collapsed overnight.
    2000Dot-com Bust (India Impact)30-40Technology stocks fell sharply after heavy speculation.Overvaluation of IT stocks without real earnings support.
    2008Global Financial Crisis60Sensex lost more than half its value within months.The global banking crisis led to foreign investor selling and liquidity crunch.
    2020COVID-19 Market Crash40Markets fell sharply within weeks.Sudden lockdowns and fear of economic shutdown.
    2022Interest Rate and Inflation Shock25Markets turned volatile after a strong recovery phase.Rising inflation, rate hikes, and foreign fund outflows.

    Why the Market Is Falling in Recent Sessions

    The market has not fallen because something broke overnight. It is falling because confidence is thinning out. Investors are slowly stepping back as too many risks are lining up at the same time. When that happens, even good news stops working.

    1. Prices Ran Ahead of Reality

    After months of strong gains, stock prices moved faster than company earnings. Valuations started to feel stretched. Investors are now asking a basic question. How much upside is really left at these levels? This doubt naturally leads to selling.

    2. Growth Is Strong, but Leverage Is Rising

    India’s GDP growth remains healthy. But it is being supported by higher borrowing and government spending. Rising leverage at both corporate and household levels makes investors cautious. Growth funded by debt always invites closer scrutiny.

    3. Global Money Is Finding Safer Options

    US Treasury yields are offering stable and attractive returns. For global investors, this changes the equation. When safer assets start paying well, money moves out of equities, especially emerging markets like India.

    4. Foreign Investors Are Reducing Risk

    Foreign funds have been steadily cutting positions. This is not panic selling. It is risk management. Their selling hits large stocks first, which pulls the broader market down even if smaller stocks stay steady.

    5. No Fresh Story to Buy Right Now

    Recent earnings did not disappoint, but they did not excite either. Most positives were already priced in. Without a new growth trigger, buyers are unwilling to chase prices higher.

    6. Geopolitical Stress Is Back in Focus

    The Russia–Ukraine conflict has seen fresh escalation. Markets may appear used to it, but every flare-up revives concerns around energy prices, inflation, and global stability. This keeps investors defensive.

    7. Global Policy Signals Are Unclear

    Uncertainty around US trade decisions and interest rates is another reason. It adds to the confusion. And when there is one such situation where the policy is blurred, making a decision is hard. It impacts the investor decisions, and then they prefer to wait rather than trade.

    8. Sentiment Has Shifted, Not Fundamentals

    Importantly, this fall is about mood, not collapse. Businesses are still operating well. The economy is still growing. But markets move on expectations, and right now, expectations are being trimmed.

    Read Also: What is Gap Up and Gap Down in Stock Market Trading?

    What You Should Do When the Market Falls

    A falling market can make even experienced investors uneasy. Prices drop, news turns negative, and it feels like everyone knows something you do not. In moments like these, the right response is not speed. It is clear. How you act during a fall often decides your long-term outcome.

    1. Stop and Understand What Is Really Happening

    Before doing anything, try to understand why the market is falling. Is it due to global cues, interest rates, or short-term fear? Most falls are driven by sentiment, not by businesses suddenly failing. Knowing this helps you avoid emotional decisions.

    2. Do Not Sell Just to Feel Relieved

    Selling during a fall often brings temporary comfort, not better results. Many investors sell only to see prices recover later. Unless the reason you invested has changed, reacting to price movement alone can lock in losses.

    3. Shift Focus From Prices to Businesses

    Market prices move daily, but businesses change slowly. Look at whether companies are still growing, managing debt well, and operating normally. If the business story is intact, short-term price drops matter less.

    4. Use the Fall to Review, Not Rebuild

    A market correction is a good time to review your portfolio calmly. Check whether your asset allocation still matches your risk comfort. Make adjustments only if something no longer fits your goals, not because prices are falling.

    5. Invest Gradually If You Have Surplus Money

    If you have extra funds, spreading investments over time during a decline can help reduce risk. This approach avoids the pressure of picking the exact bottom and keeps emotions in check.

    6. Avoid Constant Market Watching

    Checking prices repeatedly increases anxiety. It often leads to impulsive moves. Markets fluctuate more in the short term than people realise. Stepping back helps you think clearly.

    7. Keep Liquidity and Peace of Mind

    Having some cash available gives you flexibility. It allows you to handle emergencies without selling investments at the wrong time and keeps you calm during volatile periods.

    8. Remember That Falls Are Part of the Journey

    Every long-term market chart includes sharp declines. Yet, markets have recovered from each one over time. Patience and discipline usually reward investors more than perfect timing.

    Read Also: 20 Things to Know Before the Stock Market Opens

    Conclusion

    Market declines often create anxiety, but they are a natural part of investing. The reason for market fall today is usually a mix of global uncertainty, valuation pressure, and cautious investor behaviour. Once you understand why markets fall today, reacting with patience becomes easier than reacting with fear.

    For clearer market insights, practical investing guides, and tools that help you stay calm during volatility, explore Pocketful’s research and learning resources. Make informed decisions and invest better with the right information on your side.

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    Frequently Asked Questions (FAQs)

    1. Is a market fall a good time to invest?

      A market fall can offer opportunities, but timing matters less than discipline. Investing gradually and focusing on strong businesses is usually safer than trying to predict the exact bottom.

    2. Should I stop my SIP when markets are falling?

      Stopping a SIP during a fall often works against long-term returns. Continuing SIPs allows you to buy more units at lower prices over time.

    3. How long do market corrections usually last?

      There is no fixed duration. Some corrections recover in weeks, others take months. What matters more is whether the economy and businesses remain stable.

    4. Does a market fall always mean a crash is coming?

      No. Most market falls are normal corrections. Crashes are rare and usually linked to major economic or financial shocks.

    5. How can beginners handle market volatility better?

      Beginners should focus on long-term goals. They must avoid frequent trading, stay diversified, and limit exposure to daily market noise.

  • What are Bond ETFs?

    What are Bond ETFs?

    In the changing world of investment, there are various investment options available for different sets of investors. One of such investment options for a conservative investor is a Bond ETF, which is traded on the stock exchange.

    In today’s blog post, we will give you an overview of the Bond ETF, along with its benefits and features.

    What are Bond ETFs?

    A bond ETF is a passive investment option that invests in a portfolio of bonds or fixed-income securities. The bond ETFs are traded on the stock exchange like any other stock; therefore, investors are required to have a demat and trading account to invest in bond ETFs. The bond ETFs are offered by various asset management companies. Download Pocketful and invest in Bond ETFs easily for a smooth, low-cost investing experience.

    Key Features of Bond ETFs

    The key features of bond ETFs are as follows:

    1. Diversified Portfolio: By investing in a bond ETF, one can get exposure to different bonds, which helps in reducing issuer-specific risk.
    2. Regular Income: Bond ETFs regularly pay the interest earned from bonds and distribute income periodically.
    3. Economical: Bond ETFs are a low-cost investment option, as they have lower management fees.
    4. Transparency: Bond ETFs offer transparency, as one can check the portfolio composition, as well as the price listed on the stock exchange.
    5. Liquidity: As the units of bond ETFs are traded on the stock exchange, they are available for buy and sell during the market hours.

    Read Also: What is Dividend ETF?

    Types of Bond ETFs

    The different types of bond ETFs are as follows:

    1. Government Bond ETFs: The government bond ETFs are primarily invested in the bonds issued by the central and state governments.
    2. Corporate Bonds ETFs: These bond ETFs invest money in the bonds issued by private companies.
    3. PSU Bonds ETFs: They invest in the bonds issued by the public sector undertakings, which offer lower risk with higher yields.
    4. Short-term bonds: When a bond ETF invests money in bonds having short-term maturity, they are known as short-term bonds. These bonds are less sensitive to interest rate changes in the economy.
    5. Long-term bonds: The long-term bonds ETFs primarily invest money in bonds having a maturity ranging from 10 – 30 years.

    How does the Bond ETF work

    The Bond ETF works in the following manner:

    1. Selection of Index: The index is selected in the first step. It can be a government bond, a corporate bond, or other types of bonds. 
    2. Creation of Portfolio: The portfolio is created in the next step, where the fund is invested in bonds that are part of the selected index.
    3. Listing of Units: Once the portfolio is created, the units are then listed on the stock exchange. And it can be bought and sold during the trading hours.
    4. Income Distribution: Bonds pay periodic coupons, hence the interest earned on the bonds is distributed to the unit holders. 

    Read Also: Best ETFs in India

    Advantages of Investing in a Bond ETF

    The key advantages of investing in a bond ETF are as follows:

    1. Stable Returns: As the bond ETFs invest money in fixed income securities, therefore it offers stable returns than equity ETFs.
    2. Portfolio Diversification: By investing in a bond ETF, one can easily diversify their bond portfolio across multiple bonds. 
    3. Economical: Bond ETFs are low-cost investment options as they are passively managed and have a lower expense ratio.
    4. Liquidity: The bond ETF offers high liquidity as it can be easily bought and sold during market hours.

    Disadvantages of Investing in a Bond ETF

    The disadvantages of investing in a Bond ETF are as follows:

    1. Interest Rate Risk: The bond prices change based on the current interest rate in the economy. Therefore, any fall in the interest rate can significantly impact the bond ETFs.
    2. Credit Risk: Investment in a bond comes with credit risk because the issuer of the bond can default or face credit downgrades.
    3. No Maturity: The bond ETFs do not have any maturity date or period, like any other individual bond. Therefore, making less predictable returns.
    4. Premium or Discount Price: As the bond ETFs are traded on the stock exchange, there is a risk of trading at a premium or discount to their actual NAV. 

    Read Also: What is Gold ETF? Meaning & How to Invest Guide

    Who should invest in Bond ETFs?

    Investing in the bond ETFs is suitable for the following investors:

    1. Conservative Investor: Investors who do not want to take risks and look for capital protection investment options can consider investing in bond ETFs.
    2. Regular Income: Bond ETFs regularly pay interest received on the bonds to the investors. Hence, investors who are looking for regular income can invest in bond ETFs.
    3. Diversification: Those who wish to diversify their bond portfolio can use bond ETFs as an investment option.
    4. Short-Term Goals: Investors who wish to park their funds for short-term goals can invest in bond ETFs.

    Conclusion

    On a concluding note, bond ETFs are a suitable option for investors seeking steady gains in addition to regular income, particularly those who are unwilling to risk their capital. However, having a trading account and a demat account is essential because these are the primary methods available for purchasing ETFs. They are not completely risk-free; there are still some risks, such as interest rate changes and the chances of credit default. Therefore, it is advisable to consult your investment advisor before making any investment decision. To invest in a bond ETF, you can now open your demat and trading account with Pocketful, as it offers a lifetime free demat account with zero brokerage on delivery.

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    Frequently Asked Questions (FAQs)

    1. What are bond ETFs?

      A bond ETF or bond exchange-traded fund is an investment option which is traded on the stock exchange like any other stock, and it invests in a portfolio of bonds, such as government, corporate bonds, etc.

    2. Can I invest in a bond ETF without a demat account?

      No, you cannot invest in a bond ETF without a demat account, as they can be bought and sold on the stock exchange; therefore, having a demat account is mandatory to invest in a bond ETF. If you do not have a demat and trading account, you can instantly open a demat and trading account with Pocketful, which is free of cost.

    3. Can I invest in a bond ETF anytime during the day?

      No, you cannot invest in a bond ETF anytime. They can only be bought and sold during the market or trading hours.

    4. Do Bond ETFs provide regular income?

      Yes, bond ETFs do provide regular income as they distribute interest earned from the bonds periodically to the investors.

    5. How can I invest in a bond ETF?

      To invest in a bond ETF, you can open a demat and trading account with Pocketful, after which you are required to add funds to it, and then you can purchase the bond ETF of your choice, depending on your risk profile and investment objective.

  • Best ULIP Plans in India

    Best ULIP Plans in India

    For many Indian families, a ULIP is often the first place where insurance and investing meet. It usually begins with a simple thought. You want to secure your family’s future. But now the question is, which plan is right for you? This is where people incline towards ULIP plans. They are more transparent, flexible, and aligned with long-term goals than they once were.

    In 2026, choosing the best ULIP plan in India is less about tax benefits and more about steady wealth creation with protection. When selected carefully, the best ULIP plans support life cover and market-linked growth, while helping you stay invested through changing market cycles.

    So, let us explore the top 10 ULIP plans in India and understand the factors that impact the choice of the plans as well. But before that, let us know what ULIP plans are.

    Understanding ULIP Plans

    ULIP plans refer to the Unit Linked Insurance Plans. These are products that combine insurance and investment in one structure. When you invest in a ULIP, a part of your premium goes towards life insurance cover. But the rest of the amount that you have invested goes into the market-linked funds, such as equity, debt, or a mix of both.

    What makes ULIP plans different is flexibility. You can switch between funds based on your goals and market conditions. Over time, ULIPs help you build wealth. This also helps in ensuring financial protection for your family. Also, when you stay invested in the ULIP plans for a longer duration, you are in a position to earn higher returns. 

    Factors to Consider Before Investing in the Best ULIP

    Choosing the best ULIP plan in India is not about ticking boxes. It is about understanding how the plan will support your goals over the years. A ULIP stays with you for a long time. Hence, it is the basic need to feel right from day one. When these factors align, best ULIP plans become easier to manage and stay invested in.

    1. Premium Affordability

    The premium should fit naturally into your budget. If the amount feels heavy today, it will feel worse later. A comfortable premium helps you stay consistent through market ups and downs.

    2. Premium Payment Structure

    Check whether the plan offers regular pay or limited pay options. Choose a structure that matches your income pattern, not just one that looks convenient on paper.

    3. Investment Horizon

    ULIPs are designed for long term goals. A horizon of 10 to 15 years allows the investment side of the plan to work through market cycles more effectively.

    4. Fund Choices Available

    Look at the range of funds offered. Equity, debt, and balanced funds give you the freedom to adjust risk as your priorities change.

    5. Fund Switching Facility

    Markets do not move in straight lines. A good ULIP allows easy fund switching so you can realign investments without disrupting the policy.

    6. Riders and Additional Protection

    Riders such as accidental death or critical illness can add value. Choose them only if they match your real needs and do not inflate costs unnecessarily.

    7. Adequacy of Life Cover

    The insurance cover should offer genuine protection. A ULIP works better when the life cover supports your family’s financial needs properly.

    8. Lock-in Period and Liquidity

    ULIPs have a five-year lock-in. Make sure your emergency funds are separate, so this investment remains untouched.

    The best ULIP plans work quietly in the background. But this is all possible only when chosen with clarity, patience, and realistic expectations.

    Read Also: Best Insurance Stocks in India

    Top 10 ULIP Plans in India 2026 

    If you are planning to invest in the best ULIP plan with high returns, then here are the options that you should consider.

    ULIP PlanMin Entry AgeMax Entry AgeIndicative Minimum Annual Premium (Regular Pay)Typical Policy Term / Tenure
    HDFC Life Click 2 Wealth / Click 2 Invest30 daysUp to 60 yearsAround ₹12,000 PA or single premium from ~₹24,00010–40 years; some options extend up to age 99
    SBI Life eWealth Insurance18 years50 yearsAround ₹10,000 per year10–30 years depending on option
    ICICI Prudential Signature30 days – 18 years Up to 60 years~₹30,000 per year; whole-life variants around ₹60,00010–40 years; whole-life up to age 99
    Bajaj Allianz Goal Assure / Future Gain ULIPs30 days to 6 years60–65 yearsTypically ₹25,000–₹30,000 per year10–30 or 40 years depending on plan
    Tata AIA Fortune Pro / Wealth ULIPs30 days60–65 yearsUsually ₹24,000–₹30,000 PA10–40 years; some plans run till age 100
    Max Life Platinum Wealth / Online Savings ULIP18 years55–60 yearsAround ₹24,000 per year10–30 or 40 years based on premium term
    Aditya Birla Sun Life Fortune Elite / Wealth Aspire30 days / 18 years60–65 yearsAround ₹40,000 per year (HNI-focused plans)10–40 or 50 years with multiple PPT options
    Canara HSBC Life Invest 4G0–18 years Up to 65 yearsAround ₹24,000 per year5–30 years with flexible premium terms
    PNB MetLife Mera Wealth30 days54–60 years₹12,000 per year (online); premium variants higher10–30 years depending on pay structure
    LIC Endowment Plus and other LIC ULIPs90 days / 7–8 years50–60 yearsAround ₹20,000 per yearUsually 10–20 or 25 years

    Now that you know the top 10 ULIP plans in India, let us explore them in a bit of detail here.

    1. HDFC Life Click 2 Wealth / Click 2 Invest

    This plan suits investors who want the best ULIP plan with higher return potential but still want control. It offers multiple equity and debt funds, which help you adjust risk as goals change. The low entry premium makes it accessible early in life. Over long periods, it works well for disciplined wealth creation rather than short-term gains.

    Pros: Flexible equity–debt fund choices, low entry premium, good for long-term wealth creation with insurance cover.

    Cons: Market-linked volatility, initial ULIP charges, not suitable for short-term goals.

    2. SBI Life eWealth Insurance

    SBI Life eWealth is often chosen by investors who prefer simplicity and stability. It is not positioned as an aggressive product, but as a steady best ULIP plan in India for long-term planning. The lower minimum premium helps salaried investors stay consistent. It fits goals like retirement or building a safe long-term corpus.

    Pros: Simple structure, stable investment approach, lower minimum premium, suitable for long-term goals like retirement, includes life cover.

    Cons: Limited aggressive growth potential, fewer high-risk fund options, returns may lag in strong bull markets.

    3. ICICI Prudential Signature

    This plan is designed for investors aiming for scale. It suits those comfortable with market ups and downs and looking for a best ULIP plan with high returns over time. The whole-life option makes it relevant for legacy planning. It works best when you can commit higher premiums and stay invested for decades.

    Pros: High long-term return potential, suitable for aggressive investors, whole-life option supports legacy planning, wide fund choices with flexibility.

    Cons: Requires higher premium commitment, market-linked volatility, not ideal for conservative or short-term investors.

    4. Bajaj Allianz Goal Assure / Future Gain ULIPs

    These ULIPs are built around goal-based investing. They appeal to investors who want structure without micromanaging funds. The plans balance equity exposure with downside control, making them suitable for long term goals like children’s education. For many, this feels like a practical best ULIP choice rather than a high-risk bet.

    Pros: Goal-based structure reduces the need for active fund management, balanced equity exposure with downside control, suitable for long-term goals like children’s education, loyalty additions for long-term investors, includes life cover.

    Cons: Market-linked returns can fluctuate, multiple ULIP charges may impact early returns, 5-year lock-in limits liquidity, not suitable for short-term or very aggressive return seekers.

    5. Tata AIA Fortune Pro / Wealth ULIPs

    Tata AIA ULIPs are known for strong equity-oriented fund options. They suit investors seeking a best ULIP plan with higher return focus, especially over long horizons. The flexibility in policy terms and fund choices helps match evolving goals. These plans work well if you are comfortable reviewing and adjusting investments occasionally.

    Pros: Equity-focused funds with strong long-term return potential, flexible fund and policy options, suitable for active investors.

    Cons: Market volatility, ULIP charges impact early returns, not suited for short-term or conservative investors.

    6. Max Life Platinum Wealth / Online Savings ULIP

    Max Life ULIPs appeal to investors who want clarity and long term discipline. They are often used for retirement or wealth accumulation goals rather than aggressive growth. While returns depend on fund choice, the structure supports consistency. This makes it a reliable best ULIP plan in India for conservative to moderate investors.

    Pros: Clear structure with long-term discipline, suitable for retirement and wealth accumulation, reliable for conservative to moderate investors.

    Cons: Lower aggressive growth potential, market-linked returns can still fluctuate, ULIP charges may reduce early returns.

    7. Aditya Birla Sun Life Fortune Elite / Wealth Aspire

    These ULIPs are positioned for higher premium investors. They suit those looking for the best ULIP plan with high returns through active equity exposure. The multiple premium payment options help in planning cash flows. It works best when you already have basics covered and want ULIPs as a wealth-building layer.

    Pros: High equity exposure for long-term returns, flexible premium payment options, suitable as a wealth-building add-on.

    Cons: Market volatility, higher premium commitment, ULIP charges affect early returns.

    8. Canara HSBC Life Invest 4G

    Invest 4G is often chosen by first-time ULIP investors who want flexibility without complexity. The wide choice of policy terms and premium options makes it adaptable. It may not be the most aggressive, but it serves as a balanced best ULIP option for long-term goals like savings and family security.

    Pros: Flexible policy terms and premium options, easy for first-time ULIP investors, balanced approach for long-term savings and family security.

    Cons: Limited aggressive growth potential, market-linked returns can vary, ULIP charges may reduce early gains.

    9. PNB MetLife Mera Wealth

    This plan works well for investors starting with smaller premiums. It is suitable if you want to explore ULIPs without heavy commitment initially. Over time, with consistent premiums, it can support steady growth. Many see it as a practical best ULIP plan in India for disciplined, goal-based investing.

    Pros: Suitable for investors starting with smaller premiums, supports disciplined goal-based investing, steady growth with consistent contributions.

    Cons: Moderate return potential, market-linked volatility, ULIP charges may affect early returns.

    10. LIC Endowment Plus and Other LIC ULIPs

    LIC ULIPs attract investors who value trust and familiarity. These plans are generally conservative in nature and focus more on stability than aggressive returns. While not positioned as the best ULIP plan with higher return, they suit long-term investors who prioritise safety, discipline, and the LIC brand comfort.

    Pros: Trusted brand with focus on stability, suitable for long-term conservative investors, disciplined savings with life cover.

    Cons: Lower return potential compared to aggressive ULIPs, market-linked returns still apply, may lag high-growth options.

    Read Also: ELSS Funds: 3 Years Lock-In Worth It?

    Who Should Invest in ULIP Plans

    ULIP plans are designed for specific types of investors. So, if you are selecting the best ULIP plan in India, check these points before you plan to invest:

    1. Long-Term Goal-Based Investors

    ULIPs are suitable for people investing for retirement, children’s education, or wealth creation over 10 to 15 years. The best ULIP plans perform better when given time.

    2. Investors Looking for Protection With Growth

    If you want life insurance along with market-linked returns, ULIPs offer a combined approach. This makes them a practical best ULIP option for integrated planning.

    3. Disciplined Investors

    ULIPs suit those who can pay premiums regularly. They prefer to stay invested during market volatility. Discipline plays a key role in making ULIPs effective.

    4. Investors Comfortable With Market Risk

    ULIPs invest in equity and debt funds. Hence, they are suitable for investors who understand market ups and downs and aim for long-term growth.

    5. First-Time Long-Term Investors

    For beginners seeking structure and guidance, the best ULIP plan in India can help build investment discipline while offering insurance cover.

    Read Also: Top 10 Tax Saving Instruments in India

    Conclusion

    A ULIP is not a quick-win product. It is meant for people who think in years, not months. When you choose the best ULIP plan in India, you are committing to an investment plan for a long duration. This needs discipline and patience. And if you can have that, then ULIP is the plan for you.

    If you want help comparing options without sales pressure, Pocketful helps you understand features clearly and shortlist the best ULIP based on real needs, not brochures.

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    Frequently Answered Questions (FAQs)

    1. How long should I stay invested in a ULIP?

      A ULIP works best when held for at least 10 to 15 years. This gives your investment enough time to move through market cycles.

    2. Do ULIPs really give good returns?

      Returns depend on the fund you choose and how long you stay invested. If you invest in equity-based ULIPs, you will gain higher returns.

    3. Can I change funds inside a ULIP later?

      Yes, most ULIPs allow fund switching. This helps you adjust risk as your goals or market conditions change.

    4. Is ULIP suitable for first-time investors?

      Yes, ULIPs can work well for beginners who want a structured approach to long-term investing with insurance included.

    5. When should I avoid investing in a ULIP?

      If you need short-term access to money or cannot commit to regular premiums, a ULIP may not be the right choice.

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