The key to success in investing is diversification. An investor shouldn’t invest their capital in a single asset or fund. While it comes to diversification, there are two options available, which include ETF and FOF.
In today’s blog post, we will give you an overview of ETFs and FOFs along with their key differences.
What are ETFs?
ETFs are commonly known as Exchange Traded Funds and are a passive investment option offered by Asset Management Companies. ETFs predominantly invest in a basket of stocks or other assets. ETF tries to mirror the performance of the underlying index in which it invests. They are traded like any other stock on the exchange. To purchase and sell an ETF one is required to have a demat and trading account.
Features of ETFs
The key features of ETFs are as follows:
Exchange Traded: The ETFs are traded on the stock exchange like any other stock. Hence, one can trade in it during the trading hours only.
Demat Account: It is mandatory to have a demat and trading account if you wish to invest in ETFs.
Cost-Effective Investment: Exchange Traded Funds or ETFs generally have lower management fees because of a passive investment approach. Hence, they are suitable for investors seeking cost-effective diversified investment options.
Diversification: The amount invested in ETFs is diversified into several securities. Hence, it provides portfolio diversification through a single investment and reduces risk.
What are FOFs?
A Fund of Funds is a type of fund offered by asset management companies that invests in units of other mutual funds or ETFs and does not directly invest in securities. In FOF, a fund manager selects a mutual fund or ETF based on their investment objective and invests in it. Unlike ETFs, it does not require a demat and trading account.
Features of FOF
The key features of FOF are as follows:
Investment in Other Funds: FOFs invest in the units of other mutual funds or ETFs instead of directly investing in stocks and other securities.
No Requirement of a Demat Account: As in the case of investment in stocks and ETFs, having a demat account is mandatory. But it is not essential to have a demat account while investing in FOF.
Higher Expense Ratio: FOF generally has a higher expense ratio as investors have to pay the expense ratio of FOF along with the underlying fund.
Global Market Access: Many FOFs invest their money in various international funds, which allows an investor to diversify their portfolio globally.
The key difference between ETFs and FOFs is as follows:
Particular
ETFs
FOFs
Investment
ETFs invest their money in a basket of index-tracking the performance of the underlying security.
FOF invests their money in the units of other mutual funds or ETFs.
Purchase Option
ETFs can be purchased on the stock exchange during the trading hours.
Investment in FOFs can be made anytime, like mutual funds.
Trading and Demat Account
It is mandatory to have a demat and trading account if one wishes to invest in an ETF.
A trading and demat account is not required to invest in FOF.
Expenses
ETFs generally have a lower expense ratio, offering a cost-effective investment option.
The expense ratio is generally higher in FOF due to layers of fund management.
Change in Price
The prices of ETFs change throughout the trading session.
The NAV of funds are disclosed at the end of the trading day.
Transparency
The portfolio of ETFs is disclosed daily.
The transparency of the FOF depends on the underlying funds.
Flexibility of Investment
Investors can place different types of orders, such as limit orders, market orders, etc.
Such trading features are not available in FOF.
Brokerage
Brokerage and other charges are applicable while investing in ETFs.
Investors are not required to pay any brokerage charges.
ETF or FOF, which one should you choose?
Both ETFs and FOFs offer different types of investment avenues for investors. If you have a demat and trading account and prefer a low-cost investment option, then you can consider investing in an ETF. On the other hand, if you want to have a simple mutual fund-type investment, then you can invest in FOF. They both offer diversification in a portfolio. However, the ultimate choice depends on the investor’s investment option and risk profile.
On a concluding note, both ETFs and FOFs offer an investor an opportunity to diversify their portfolio through a single investment option. ETFs are traded on a stock exchange similar to any other stock. Whereas FOFs are like a mutual fund which has different mutual fund holdings as its underlying assets. FOF does not require regular monitoring, unlike ETF. However, both ETFs and FOFs carry certain risks related to market volatility. Therefore, it is advisable to consult your investment advisor before making any investment in these two.
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ETFs are a passive investment option which tracks the performance of different indices. However, FOF invests their money in various mutual fund units, which can either be an index or an active fund.
Which is a more cost-effective investment option between ETF and FOF?
ETF is a more cost-effective investment option because it has a lower expense ratio and is passively managed. FOFs have a slightly higher cost as it also involves the expense ratio of the underlying fund.
Is a Demat account required to invest in both ETF and FOF?
No, a Demat account is only required for investment in ETF, not for FOF. ETFs are traded on the stock exchange, and FOFs can be bought and sold similarly to a mutual fund.
Can I invest in an ETF anytime?
No, as ETFs are traded on the stock exchange, they can be bought and sold during market hours.
Do FOF invest in international funds?
Yes, various FOFs invest their money in international mutual funds and ETFs. Through which an investor can diversify their portfolio globally.
Most Indians only think about two things when it comes to savings, first is to beat the rising prices and other is to save the direct taxes. The Indian government helps the citizens to save on taxes through 80C of the Income tax Act. But in the financial year 2025 – 2026 if you pick the right choice you can save more of your income. There are two most popular ways in which you can do this, Voluntary Provident Fund (VPF) and the Public Provident Fund (PPF).
These are two safe options as they are backed by the government, but they both work differently. One is specifically for the salaried person, the other one can be opted by anyone.By comparing them, you can decide which fits your goals. At Pocketful, we want to make this choice easy and clear for you.
What is VPF (Voluntary Provident Fund)?
VPF is designed for salaried employees to save some extra money. From your salary a part of your salary goes to the Employees’ Provident Fund (EPF) account. Generally this is 12% of the basic pay. Here VPF allows the employees to put more than this and you can even choose to save your whole basic salary if you want. This extra money goes into your existing EPF account.
To put your money is very easy, employees just need to contact the HR to deduct more from your monthly salary. Here you get the salary in your account after all these deductions which helps in saving more automatically. The interest rate you get is the same as EPF, which is 8.25% for the year 2025-26. It is a safer option as it is managed by a government body called EPFO.
VPF can only be used by salaried employees as every employee is given a Universal Account Number (UAN) at work. If you have your own business or work as a freelancer, you cannot use VPF. For employees, it helps build a huge fund for the future because of the high interest rate. But remember, if you save more than Rs.2.5 lakh in a year, the interest on the extra amount will be taxed.
What is PPF (Public Provident Fund)?
PPF is a famous long-term savings plan which started in 1968 to help people save small amounts over many years. Here you don’t need to have a company to open a PPF account. It is a 15-year plan, which makes it perfect for long-term goals like a child’s education or your retirement. This is a central government scheme making it a safe savings option.
You can open a PPF account at a bank or a post office with as little as Rs.500. The maximum amount you can put is Rs.1.5 Lakhs per year and you get an interest rate of 7.1%. The government reviews this rate every three months. A great thing about PPF is its “EEE” tax status. This means you get a tax break when you invest, you pay no tax on the interest, and no tax when you take the money out.
Anyone who lives in India can open a PPF account. You can be a salaried worker, a shop owner, or someone who stays at home. You can also open an account for your children. You can only have one PPF account in your name. If you need money for an emergency, you can take a loan after 3 years or a partial withdrawal after 5 years.
If you are looking for the highest return then VPF is the option as here the interest rate is 8.25% for 2025-26 ( it is the same for the last two years). You get a very high interest rate in this as there is no risk attached.
PPF on the other hand offers an interest rate of 7.1%. The government checks this rate every three months. Although this is lower than VPF, the interest you earn in PPF is 100% tax-free. In VPF, if you are a high earner and put in more than Rs.2.5 lakh a year, you will have to pay tax on your interest. This makes both options quite similar for many people.
If you save less than Rs.2.5 lakh a year, VPF gives you more money because 8.25% is better than 7.1%. But if you don’t have a corporate job, PPF is the best way to save. At Pocketful, we think a mix of both can be a great way to balance high returns with tax-free benefits.
Eligibility Criteria
VPF is only for people who are employed in a company that offers EPF. You need a Universal Account Number (UAN) to start. If you work in a large office, you likely already have this. If you are a doctor with your own clinic or a freelancer, you cannot use VPF.
PPF is open to everyone and every Indian citizen can open a PPF account. You can be a worker, a business owner, or a student. You can open an account at your post office or banks like SBI. You can even have a PPF account if you already have a VPF account. This makes PPF very flexible for all families.
Contribution Limits and Tenure
For VPF, there is no fixed limit like Rs.1.5 lakh in PPF and you can save up to 100% of your basic pay. This is great if you want to build a large fund quickly. Just remember, your employer only matches the mandatory 12% part, not the extra VPF part.
For PPF, you must save at least Rs.500 every year. The most you can put in is Rs.1.5 lakh per year. If you put in more, you won’t get interest on the extra money.
VPF is directly tied to your job and you can stay locked until you retire. If you change jobs, you can move your balance to the new company. PPF has a fixed 15 years lock-in and after this you can take the money or extend it for 5 years at a time.
Withdrawal Rules & Liquidity
For VPF:
Money can be taken out if you have no job for more than 2 months.
You can withdraw for requirements like a child’s wedding or for medical bills.
You can take out money to buy or build a house.
If you take it out after 5 years of working, it is tax-free.
For PPF:
There is a lock-in period and you can take all the money after 15 years.
You can make a small withdrawal after 5 years.
50% of your balance can be taken out four years ago.
Any money you take out from PPF is always 100% tax-free.
Both VPF and PPF are safe options to keep your savings safe and growing simultaneously. The government promises that your money is safe and the interest will be paid. Unlike stocks, the value of these funds never goes down. They are ideal for people who want to be sure their money is safe for the future. VPF is managed by the EPFO, and PPF is a direct government scheme.
Advantages and Disadvantages of Voluntary Provident Fund (VPF)
Advantages
Offers a very high interest rate of 8.25% right now.
Savings are deducted automatically from your salary, making it effortless.
There is no fixed upper limit like Rs.1.5 lakh for your savings.
It is a safe, government-backed fund for your retirement.
Compounding helps your money grow significantly over long periods.
You get tax deductions under Section 80C if you use the old tax regime.
Disadvantages
Only available to salaried employees with an EPF account.
Money is usually locked until you leave your job or retire.
Interest becomes taxable if you save more than Rs.2.5 lakh in a year.
Your employer does not contribute extra money to the VPF portion.
Withdrawals are taxable if you take the money out before 5 years of service.
No 80C tax benefits are available if you choose the New Tax Regime.
Advantages and Disadvantages of Public Provident Fund (PPF)
Advantages
Offers “EEE” tax status where investment, interest, and maturity are all tax-free.
Open to every Indian resident, including self-employed people.
Your balance is safe from legal claims or debt recovery.
Very low entry cost as you can start with just Rs.500 a year.
You can extend the account in 5-year blocks after it matures.
You can take a loan against your balance at a low interest rate.
Disadvantages
The total investment is capped at a maximum of Rs 1.5 lakh per year.
There is a long mandatory lock-in period of 15 years.
The interest rate (7.1%) is usually lower than the VPF rate.
Interest rates are reviewed and can change every three months.
You are strictly allowed only one PPF account in your name.
No tax deduction benefits if you decide to use the New Tax Regime.
Which One is better for you?
Employment Status: If you are a salaried employee with an EPF account, VPF is a preferred and easy choice for good returns. But if you are self-employed or a business owner then PPF is the only choice that you have.
Investment Goals: If you are saving for your future needs like retirement then PPF is the best option as the money gets locked in and if you are looking to save money and use it after sometime then VPF is the option.
Risk Appetite: Both the saving plans are risk free so you can put money according to your needs.
Liquidity: VPF is a flexible savings plan on the other hand PPF is a rigid savings plan due to fixed lock-in.
Picking between VPF and PPF depends on your job and your future plans. VPF is great for employees who want high returns and easy, automatic savings. PPF is a flexible and tax-free plan that works for everyone in the family.
You don’t have to pick just one. If you have a salary, you can use VPF for high returns and PPF for its tax-free benefits. Both are safe and will help your wealth grow. The most important thing is to start today so your money has more time to grow.
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The news around the war involving Iran has caused a lot of tension around the world. For India, this is not just a distant conflict. It is a major event that changes how we trade and how our markets move. If you are an investor, you must understand the impact of the Indian shipping sector & impact of Iran war.
When a major power like Iran is involved in a conflict, the sea routes become dangerous. This leads to a direct Iran war impact on shipping stocks because companies have to pay more for fuel and insurance.
The Middle East is the center of global energy. Most of the oil and gas we use comes from this region. When war breaks out, investors usually get scared. They sell their stocks and move their money to safe things like gold. In India, we have already seen the Sensex and Nifty drop when news of the war first came out. This happens because India depends heavily on the Middle East for energy. We also sell a lot of goods like rice and clothes to these countries. If the ships cannot move safely, our economy feels the pain.
Strategic Importance of the Strait of Hormuz?
The Strait of Hormuz is a very narrow piece of water between the Persian Gulf and the Gulf of Oman. It is the only way for tankers to carry oil out of the Middle East to the rest of the world. Even though it is very small, it is the most important chokepoint in the global economy. At its narrowest point, the shipping lanes are only two miles wide in each direction. If this passage is blocked, there is no easy alternative to move such a large amount of oil.
About 20 million barrels of oil pass through this strait every single day. This is about 20% to 25% of all the oil used in the world. It is not just about oil. About 20% of the world’s Liquefied Natural Gas (LNG) also comes through here, mostly from Qatar. For India, this gas is very important for power and making fertilizers. When there is a threat of war, the cost of moving these goods goes up instantly. This happens because shipping companies have to pay much higher prices for fuel and for the safety of their ships.
The reason this affects global shipping costs is simple. When the strait is at risk, insurance companies charge a “war risk” fee. Also, some ships might choose to avoid the area altogether. If fewer ships are willing to go there, the cost to rent a ship increases. These higher costs eventually make everything more expensive for the common person. For India, which imports about 89% of its crude oil, any trouble in the Strait of Hormuz is a big risk to our economic stability.
How the Iran Conflict Disrupts Global Shipping Routes
When war starts, the normal paths that ships take are no longer safe. The first problem is vessel delays and congestion. Ships often have to wait in safe areas until they get permission to move. This creates a “traffic jam” at sea. Sometimes, tankers are seen waiting on both sides of the Strait of Hormuz because they are afraid of being attacked. These delays mean that raw materials do not reach factories on time, which can stop production in many industries.
The second big change is route diversions. To stay safe, many ships are now avoiding the Middle East and the Red Sea. Instead, they go all the way around the bottom of Africa, known as the Cape of Good Hope, making the journey way much longer. It adds about 14 to 25 days to a single trip. Because the journey is longer, ships use much more fuel. This also means there are fewer ships available globally because each ship is busy for a longer time on a single trip.
Rising war risk insurance premiums are another hidden cost. Normally, insuring a ship is a standard cost. But during a war, insurance companies may raise their prices by 50% or even more. Some insurers might even refuse to cover ships going to certain ports. This makes it very expensive for companies to operate. All these extra costs are passed down to us, the consumers. This is why we see the prices of imported goods going up during a conflict.
Impact on Global Supply Chains and Trade
The war creates a shock that is felt by every country. The most direct impact is the jump in freight rates. This is the price paid to move goods in a container or a tanker. When routes are longer and risks are higher, these rates can shoot up very fast. For example, some container shipping prices rose by 8% in just one week. For oil tankers, the cost of moving oil to India can become four times more expensive than usual.
We also face container shortages and shipping delays during this situation as longer routes are taken by the ships via Africa. This leads to a shortage of empty containers for the next batch of exports. Goods at ports like Mundra or JNPT in India. When products are stuck at the port, the cash flow of businesses is hit which then leads to empty shelves in stores.
There is also a big impact on commodity exports and imports. The Middle East is a huge supplier of fertilizers and metals like aluminum. About one third of the world’s urea passes through the Strait of Hormuz. If this supply is cut off, the price of fertilizer goes up, which eventually makes food items more expensive. This portrays that tension in one region can lead to higher prices of goods and commodities in a different region.
Impact on India’s Trade and Logistics Sector?
India has very strong trade ties with the Middle East and products worth $60 billion to $65 billion are sold in this region every year. Higher shipping costs make the exporters suffer. They have to pay 20% to 30% more for freight and insurance. This makes Indian products more expensive in the global market. For example, exporters of Basmati rice have already faced trouble because their ships are stuck or the costs are too high to manage.
Energy imports are the biggest risk for India, as we get a huge part of our oil and gas through the Strait of Hormuz. If oil prices stay above $100 per barrel, it costs India billions of extra dollars. This also makes the Indian Rupee weaker against the US Dollar. A weaker Rupee makes everything we import, like electronics and machinery, more expensive resulting in higher inflation across the whole country.
The logistics sector inside India is also on high alert, because ships are getting delayed and goods are piling up at our ports. It is estimated that nearly 6 to 7 lakh containers linked to Gulf trade were affected by the uncertainty. This delay hurts our manufacturing companies. For instance, the pharmaceutical industry gets raw materials from China by sea. If these ships are delayed, the cost of making medicines can go up by 30% or more.
Immediate Market Reaction in Indian Shipping & Logistics Stocks
When the conflict started, the Indian stock market reacted with a lot of volatility. The Sensex and Nifty fell by about 3% to 4% in just two days. Port and logistics stocks were hit even harder, with some falling as much as 10% in a single day. Investors were worried that if trade slowed down, these companies would make much less profit. They also feared the impact of high fuel costs on their margins.
Volatility is common during such times as stock prices swing up and down based on the latest news. For example, if there is talk of a ceasefire, the stocks might recover. But if an oil facility is attacked, they fall again. Experts say that while this looks scary, you should not panic. History shows that markets usually recover from such events after a few months. However, the initial reaction is always one of fear and caution.
Investors are also concerned about cargo volumes. If fewer ships come to Indian ports because of the war, the port operators earn less money. There is also the risk of physical damage. Some Indian companies have assets in the Middle East. If a storage tank or a terminal is damaged in the conflict, it directly affects the company’s value. This is why investors track these stocks so closely every day.
Indian Shipping Stocks That Could Benefit from Higher Freight Rates
It might sound strange, but some companies can actually benefit from a crisis. This is true for shipping lines that own their own ships. When there is a shortage of ships, the price to rent one goes up. During these times companies can even charge higher freight charges resulting in high profits.
Shipping Corporation of India (SCI): This is one of the largest shipping companies in India. This company has its own fleet of tankers and gas carriers. When oil routes become dangerous and rates go up, SCI can earn more from its ships. Investors often buy SCI stocks during such times because they see it as a way to profit from rising shipping prices.
The Great Eastern Shipping Company: This is another major player in the private sector. It has a lot of tankers that carry crude oil and petroleum products. Like SCI, it benefits when global freight rates rise. It also has a subsidiary that provides services for oil exploration, which can see more demand if countries try to produce more of their own oil.
Port and Logistics Stocks That Could Face Headwinds
While shipping lines might benefit, port and logistics companies often face difficulties. These companies need a steady flow of ships to make money.
Adani Ports and Special Economic Zone: This is the biggest private port operator in India. About 15% of the container volume at its Mundra port is linked to the Middle East. If trade with the Gulf slows down, its cargo volumes could drop. This is why its stock price often falls when the war intensifies.
JSW Infrastructure: This company has a liquid storage terminal in the UAE. This facility was reportedly hit by drone debris, which caused some damage. Any such disruption in the conflict zone is bad for the company’s profits. It also has plans to expand in the region, which could be delayed because of the war.
Gujarat Pipavav Port: This port relies on services that move through the Red Sea and the Gulf. In the past, when there was trouble in these waters, shipping lines skipped this port to save time. This leads to lower volumes and lower income for the company.
Secondary Impact on Other Logistics-Linked Companies
The impact of the war spreads to other related businesses too.
LPG Logistics: India imports about 90% of its LPG which comes through the Strait of Hormuz and companies like Aegis Logistics take care of the cooking gas imports.
Container Operators: In India container movement within India is done by trains and companies like CONCOR handle this. Delayed international shipments makes it very unpredictable for companies to manage the right train schedule.
Airport Logistics: For urgent needs like medicines or electronics air freight is used and with closed airspace over the middle eastern region planes have to travel through longer routes. This results in costlier air freight and companies managing these cargo tend to witness higher cost and lower volumes.
Key Risks Investors Should Watch
If you are planning to invest during this time you shall keep the following point in mind:
Strait of Hormuz Closure: If there is a full blockade it could affect 20% of the world’s oil trades which can lead to a huge economic shock.
Oil Prices: If the Brent crude price will be above $100 it can cause a very high inflation situation in India.
Insurance Costs: With high insurance costs many ships might simply stop travelling.
Supply Chain Shifts: If the war lasts for a long time, companies might look for new ways to trade which could lead to exclusion of Indian ports, resulting in long term loss for the nation.
Conclusion
The Iran war shows us how countries are connected, for India the impact on shipping and logistics can directly affect the economy. Some shipping companies might look for higher profits but overall the economy will suffer. Investors shall stay calm and look for long-term reliable companies. The war in Iran is a reminder of how connected the world is. For India, the impact on shipping and logistics is real and markets have faced such situations earlier as well and are also aware about how to recover.
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During war ships have to take longer routes, there are fewer vessels available for everyone else. This allows shipping companies to charge much higher prices, which can increase their profits.
How does the Iran war affect the price of things in India?
The war makes oil more expensive. Since almost everything in India is moved by trucks or ships that use fuel, the cost of transport goes up. This leads to higher prices for groceries, electronics, and even flight tickets.
Will the war stop India’s exports to the Middle East?
Exports haven’t stopped, but they are facing huge delays. About $4 billion of Indian exports could be at risk every month if the conflict continues.
What happens if the Strait of Hormuz is closed?
If it is closed, about 20% of the world’s oil and gas supply would be cut off. This would cause a global energy crisis, very high petrol prices in India, and a major shock to the stock market.
Should I sell my logistics stocks now?
While the market might be volatile in the short term, historical data shows that stocks often recover once the situation stabilizes.
Many investors closely follow the portfolios of well-known market veterans to understand emerging investment themes. This allows them to understand the right ways to analyse and select stocks that can help build a strong portfolio.
One such person who has attracted various investors is Madhusudan Kela. He is known for his work in the country’s finance sector. At the same time, Madhusudan Kela portfolio reflects a perfect mix of varied sectors that have helped him to create a good wealth.
But the question over here is, what are the top Madhusudan Kela stock picks in 2026 that you should know? Read this guide to get the answers.
Who Is Madhusudan Kela?
When it comes to the equity investors and fund managers, Madhusudan Kela stands out. He is often known as Madhu Kela. He was born in a small town in Chhattisgarh known as Kurud. If you see his background, he came from a simple family. His father worked for a bank.
He completed his school education in his hometown at a Hindi-medium school. Then he moved to Mumbai. He completed his Master’s in Management Studies from K. J. Somaiya Institute of Management Studies and Research in 1991.
He has worked for over 3 decades with different companies. His work in the Indian capital market is what actually stands out. He is a member of the Venture Capital Investment Committee of SIDBI for the Fund of Funds for Startups initiative.
Additionally, he is also associated with the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry. He has worked for major companies such as CICO, UBS, and Reliance Capital Limited.
Focusing on education, he founded Plaksha University. He is a trustee of the same as well. He won several wards including the Business Standard Equity Fund Manager of the Year Award in 2004.
He is known for sharing his views with others through media platforms. As of now, he is working as the Managing Director of MK Ventures Capital Limited.
Madhusudan Kela Latest Portfolio 2026
Knowing the portfolio starts with understanding the strategy. This will help you understand the basic psychology behind his investing and which sectors he preferred over others. So, here is a quick view of the portfolio.
Stocks
Holding Value
Qty Held
Dec 2025 Holding %
Sep 2025 %
Choice International
1,220.2 Cr
1,60,54,833
7.20%
8.90%
Mkventures Capital
287.5 Cr
28,58,027
74.40%
74.40%
Windsor Machines
169.3 Cr
65,15,506
7.50%
7.70%
Prataap Snacks
119.2 Cr
11,00,000
4.60%
4.60%
Sangam
103.2 Cr
24,40,699
4.90%
4.90%
Indostar Capital
75.3 Cr
33,79,834
2.10%
2.50%
Rashi Peripherals
54.3 Cr
16,07,717
2.40%
2.40%
Bombay Dyeing
36.4 Cr
32,75,739
1.60%
1.70%
SG Finserve
35.8 Cr
9,51,773
1.70%
1.70%
IRIS RegTech
29.0 Cr
10,72,000
5.20%
5.20%
Niyogin Fintech
23.2 Cr
50,20,000
4.50%
4.50%
Unicommerce eSolutions
19.6 Cr
18,34,301
1.68%
1.70%
Repro
18.3 Cr
4,75,000
3.29%
3.30%
Kopran
9.2 Cr
7,04,593
1.50%
1.50%
Emkay Global
8.1 Cr
2,89,243
1.10%
–
Nazara Technologies
–
–
–
1.20%
NOTE: All the information in the table is based on the external public sources. They are bound to change. The details shared here are only for informational and educational purposes.
Company Overviews
Now that you know Madhusudan Kela stocks, it is crucial that we know a little about these companies as well. Here is a brief overview of what these companies are all about.
1. Choice International
Choice International is a financial services company offering stockbroking, wealth management, investment banking, and advisory services. It focuses on retail investors, SMEs, and institutions seeking capital market access and financial solutions.
2. MK Ventures Capital
MK Ventures Capital is the company founded by Madhusudan Kela. The company works in the equity market and portfolio management. It focuses on identifying high-growth companies across emerging sectors in India.
3. Windsor Machines
Windsor Machines is a company that manufactures plastic processing machinery. The company provides machines to various other companies, including packaging and automotive. Its models support modern manufacturing and industrial production.
4. Prataap Snacks
Prataap Snacks must have heard of the Yellow Diamond Chips. This is the company that produces them. The company offers a wide variety of snacks and focuses on large-scale retail distribution.
5. Sangam
Sangam produces yarn, fabrics, and ready-to-stitch garments. The company supplies domestic and export markets. It focuses on the production and the inegtarted services as well. This is a prime reason for faster growth.
6. Indostar Capital
Indostar Capital Finance is a non-banking financial company that provides vehicle finance, SME lending, and corporate loans. It mainly serves small businesses and transport operators across India’s growing credit market.
7. Rashi Peripherals
Rashi Peripherals distributes technology products, including laptops, smartphones, and IT accessories. The company connects global technology brands with retailers and enterprises. It has a wide network.
8. Bombay Dyeing
Bombay Dyeing is a well-known textile brand that needs no introduction. It is known for its quality and range of home textile products, such as bed linen and towels. It also develops the residential and commercial projects.
9. SG Finserve
SG Finserve is a financial services company providing lending and investment solutions. It focuses on credit opportunities, structured finance, and capital markets activities to support businesses and financial growth.
10. IRIS RegTech
IRIS RegTech develops regulatory technology solutions. These are the ones that help organisations manage compliance, reporting, and financial disclosures. Its software supports businesses and regulators in efficiently handling complex regulatory requirements.
11. Niyogin Fintech
Niyogin Fintech company provides digital financial services. It partners with fintech platforms and financial institutions to expand access to financial products.
12. Unicommerce eSolutions
Unicommerce eSolutions offers supply chain and warehouse management software for e-commerce businesses. Its technology helps brands and marketplaces manage their working end-to-end.
13. Repro
Repro India provides print-on-demand publishing and content distribution services. It works with publishers and educational institutions to deliver books and learning materials through digital printing and supply chain solutions.
14. Kopran
Kopran is a pharmaceutical company. It manufactures active pharmaceutical ingredients and formulations. It supplies medicines to domestic and international markets.
15. Emkay Global
Emkay Global provides brokerage, investment banking, research, and wealth management services. It serves institutional investors, corporations, and high-net-worth clients in Indian capital markets.
16. Nazara Technologies
Nazara Technologies is a gaming and esports company. It works on mobile games, interactive entertainment, and sports media platforms. It operates across India and international markets.
There is no doubt that Madhusudan Kela’s portfolio shows a perfect balance of multiple sectors. The mix is important for helping you manage risk and ensure that no single situation negatively impacts your portfolio. Here are the key insights.
Financial Services and Fintech: It is one of the most prominent sectors in the portfolio. There are fintech, equity, and other companies that exert significant influence. As more individuals gain insights into building financial security, the sector’s growth potential is high.
Technology and Digital Platforms: Businesses need better technology to manage their daily operations. This is where the technology-driven businesses are gaining importance. The companies involved in operational and tech support are growing fast due to a proactive rise in demand.
Consumer Businesses: The demand for better consumer products is always there. But a few companies, like the ones selling good snacks, stay ahead of the rest. Adding such companies to the portfolio offers stability even when the market is volatile in nature.
Manufacturing and Industrial Sector: This is the backbone of the economy. Every industry needs manufacturing tools and machines to complete its processing. Investing in capital goods offers long-term growth potential. But mind that these are not companies that can offer high returns in the short run.
Healthcare and Pharmaceuticals: There is no doubt that this is one of the sectors growing rapidly, and nothing actually impacts it widely. The research, the need for better medical facilities, and support are boosting the sector to new heights.
Digital Entertainment and Gaming: The digital education, gaming, and entertainment have grown multifold in the past few years. The demand for apps and gaming is supported across every sector, making this a high-growth sector in the future.
Publishing and Content Services: Publishing and content services support the education and knowledge ecosystem. Even with the digital ear, there is a high demand for these services, and this is to support the visibility. This is a reason for consistent growth here.
Investment Strategy
The Madhusudan Kela portfolio reflects a clear investment style built around conviction and deep understanding. The companies in the portfolio are selected based on their background and sector. A simple analysis for you is here.
Focus on Emerging Growth Businesses: He often invests in companies that are still developing their full potential. These businesses may not yet be market favourites. But if you actually analyse these, these are ones with improving fundamentals and expanding demand. This gives them the ability to grow steadily over time.
Preference for Mid-Sized Companies: Many companies in the Madhusudan Kela stocks list fall in the mid-cap space. These firms usually have established operations but still have enough room to expand, making them attractive to investors seeking long-term value creation.
Long-Term Holding Approach: His portfolio shows patience rather than frequent buying and selling. Once conviction is built around a business, he tends to stay invested through cycles and allows the company’s growth to reflect gradually in its valuation.
Sector Diversification: The portfolio spreads across financial services, technology, manufacturing, consumer businesses, and pharmaceuticals. This diversification makes the portfolio stable. This allows it to work well even when there is turmoil in one of the sectors.
Strong Focus on Business Fundamentals: Investment decisions usually revolve around business quality, demand outlook, management capability, and balance sheet strength. Rather than reacting to short term price movements, the emphasis remains on long term business performance.
Looking at the structure of the Madhusudan Kela portfolio offers useful insight into his investment thinking. The companies chosen reflect both established sectors and emerging themes shaping India’s economic growth.
Clear Tilt Toward Financial Services: A noticeable portion of the portfolio sits in financial and fintech businesses. This shows confidence in India’s expanding credit ecosystem and markets. This is a sign that knowing the market trends can help greatly.
Increasing Exposure to Technology Platforms: If you see, the portfolio focuses on upcoming and new technologies as well. The idea here is simple. The businesses are changing and adoption of the same in your portfolio can be really helpful.
Selective Consumer Exposure: Consumer-oriented companies provide stability within the portfolio. This can be simple food or even the household supplies. Adding some of these companies can help a great deal.
Participation in Industrial Growth: Exposure to manufacturing and industrial companies is a sign of belief that the economy is growing. Also, these are the companies that serve as the baseline for many other sectors.
Inclusion of Niche and Emerging Segments: Some holdings belong to specialised or niche industries that are still evolving. This is key as these are rge industries with speedy growth potential but needs caution as well.
Key Insights for Investors
The Madhusudan Kela stocks portfolio offers several useful lessons for investors who want to build a thoughtful and disciplined investment approach.
Focus on finding the companies that are in their developing stage.
Create a good portfolio with patience and a proper balance.
Have exposure to multiple sectors.
Be keen to know the fundamentals and past history.
Have proper plans for entry and exit.
Analyse and update every 3-6 months to avoid losses.
Conclusion
The Madhusudan Kela portfolio reflects an investment style centred on patience, conviction, and careful sector selection. All the companies in his portfolio are selected based on deep analysis of the market.
For investors who wish to follow his plan, it is important to understand market well. Diversification is key here and should focus on a deeper approach. And if you are looking for more such insights on the stocks, then register with Pocketful and start investing right.
S.NO.
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What type of companies does Madhusudan Kela prefer?
Most of the companies in Madhusudan Kela portfolio are mid-sized with strong fundamentals. These companies are on their growing stage and support the economy.
Does Madhusudan Kela frequently change his portfolio?
No. His portfolio usually shows stability across quarters. This gradual change in the portfolio allows tracking and avoids impulse actions that can impact negatively.
Why does he invest in mid-cap companies?
Mid-cap companies often offer higher growth potential. These companies are still in a stage where they carry good potential for future. So, this offers better results.
Which sectors appear most often in his portfolio?
Financial services, technology platforms, manufacturing businesses, consumer companies, and healthcare-related firms are among the sectors that frequently appear in his investments.
What can investors learn from his strategy?
The key lessons include staying patient and focusing on the business fundamentals. This is followed by proper management, deeper analysis, and also identifying companies that are still growing rather than chasing already popular stocks.
Whenever the geopolitical tension rises, the stock market tends to become volatile and unpredictable. But not all the sectors need to be negatively impacted by such events; there are a few industries which perform well during such periods.
In today’s blog post, we will give you an overview of the top sectors to watch during geopolitical tension. along with the key factors to consider before investing in it.
Current Geopolitical Tension
Currently, geopolitical tension is escalating across the world. This geopolitical crisis involves Iran, Israel, and the US. This conflict escalated when the USA and Israel launched various missiles at Iran, and this conflict involved various countries. This conflict has disrupted the global supply chain related to crude oil, gas, etc. As a region known as the Strait of Hormuz, which is a crucial oil transportation route, has been captured by Iran.
Top Sectors to Watch During Geopolitical Tensions
The top sectors to watch during geopolitical tension is a follows:
Defense Sector
Oil and Gas Sector
Pharma Sector
Information and Technology Sector
Commodity Sector
Renewable Energy
Overview of Top Sectors to Watch During Geopolitical Tensions
1. Defence Sector
The defence sector is one sector that tends to be in the spotlight during geopolitical tensions since the government usually increases military expenditure to enhance national security. In India, the government has been focusing on domestic defence production and decreasing the dependence on imports. This has provided a high growth potential to companies that deal with aircraft manufacturing, defence electronics, missiles and surveillance systems. In the event of increased geopolitical risks, the defence companies might get increased orders from the government, which can increase their revenues and future growth potential. Due to this, defence stocks are usually closely monitored by investors in times of global uncertainty.
2. Oil and Gas Sector
The oil and gas industry is among the most sensitive industries where geopolitical tensions rise. War in oil-producing countries, particularly the Middle East, can cut supply chains and cause abrupt rises in crude oil prices. In the case of India, where much of the crude oil is imported, the developments can have major effects on the economy and energy markets. The oil exploration companies, which are upstream companies, might gain, and refining and marketing companies might be adversely affected by increased prices in the oil market. Due to the fact that energy is a key factor in economic activity, the sector becomes highly sensitive when it comes to conflicts across the globe.
3. Pharma Sector
The pharmaceutical industry can be regarded as a defensive industry since demand for medicine and healthcare products is consistent despite political and economic factors experienced in the world. This is because people still require basic medicines, vaccines, and medical care even when geopolitical crises strike. India is a major manufacturer of generic drugs in the world, which exports drugs to numerous foreign markets. This well-established international base makes pharmaceutical firms stable. Pharma stocks are sometimes considered a comparatively safer investment option during uncertain periods since the industry is likely to experience steady demand and sound financial results.
4. Information and Technology Sector
Information technology (IT) is an important sector in India’s economy and tends to be stable during geopolitical problems. Most Indian IT firms make much of their income out of international clients, especially in the United States and Europe. The currency fluctuations resulting from geopolitical tensions can be favourable to the Indian IT exporters when the US dollar is strong. Moreover, cybersecurity, digital infrastructure, and technology solutions are usually required more during global conflicts, which also contributes to the demand for IT services. The IT sector is still a preferred investment option by investors due to its high export levels and digital growth patterns.
5. Commodity Sector
Geopolitical developments have a significant impact on the commodity sector, which covers metals, minerals, and other raw materials. Global supply chains can be interrupted by conflicts, sanctions and trade restrictions, leading to commodity prices fluctuating. For example, when there is tension between countries that produce huge amounts of resources, then the price of metals such as steel, copper, or aluminium may increase. Companies manufacturing metals and other firms in the mining industry are directly affected by these price fluctuations. During the geopolitical tensions, commodity companies in India would have the advantage of increased world prices. Subsequently, this industry has become a key area of interest to most investors who are keen on knowing how the world is affecting supply and demand.
6. Renewable Energy
The renewable energy industry is acquiring more importance in the midst of geopolitical tension, particularly when international oil and gas supply is disrupted by conflicts. It has boosted investment in renewable energy sources like solar, wind and green hydrogen. India has also been on a mission to increase its renewable energy capacity as part of its long-term sustainability and energy independence objectives. With geopolitical uncertainties pointing to the dangers of over-dependence on conventional energy sources, renewable energy companies are likely to be an important part of future energy consumption.
Key Factors to Consider before Investing during Geopolitical Tensions
There are various key factors to consider before investing in the geopolitical tensions:
Volatility: Due to geopolitical events the market suddenly fluctuates which can lead to significant volatility in the short-run making impulsive decisions based on it.
Crude Oil Prices: Conflict in the oil-producing countries can push the oil prices higher. And India is heavily dependent on the import of crude oil, so it is advisable to analyse the overall market sentiment before making any investment.
Financial Performance: The financial performance of the individual company needs to be analysed, and one should only invest in companies with a higher profit margin, consistent revenue, etc.
Diversification of Investment: The investment during the volatile market conditions should not be made in one stock or sector. Therefore, one must diversify their investment portfolio across different industries to reduce risk.
Advantages of Investing During Geopolitical Tensions
Sector-Focused Expansion Possibilities: Industries such as aerospace/military suppliers, energy resources, and raw materials frequently see uplift from heightened need and elevated costs when international friction arises.
Steadiness Through Protected Industries: Fields like healthcare and technology tend to hold up well because of steady consumer needs and broad international reach, assisting in lowering portfolio vulnerability.
Profit from Rising Material Valuations: Interruptions in worldwide product flows can propel costs for petroleum, base metals, and natural fuels upwards, favorably impacting associated enterprises.
Appealing Extended Horizon Acquisition Moments: Share price dips during periods of unpredictability can present chances to purchase shares with solid underlying value at more favorable prices.
Risks of Investing During Geopolitical Tensions
Increased Market Volatility: Global political occurrences have the potential to spark swift and erratic shifts in the markets, leading to greater near-term hazards.
Rising Inflation Due to Oil Prices: Elevated petroleum rates may fuel inflation, adversely affecting numerous industries and the broader economic expansion.
Currency Fluctuations: Instability in exchange rates can influence corporate profits, particularly for firms reliant on imports or those with international exposure.
Sectoral Imbalance: Certain industries may see gains, yet others such as construction, property, and consumer spending might experience deceleration during these times
Conclusion
On a concluding note, increasing geopolitical tension in the region creates uncertainty in the market, making it highly volatile. Different sectors or industries respond in a different manner during such conditions. Some industries, such as pharma, oil, IT, etc., can perform well, whereas industries like infrastructure, real estate, etc., tend to show a significant correction. For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors Therefore, one must consult their investment advisor before making any investment during the geopolitical uncertainties.
S.NO.
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Which are the sectors that can perform well during the current geopolitical tensions?
There are various sectors, such as defence, pharma, oil and gas, IT, renewable energy, etc., that can perform well during geopolitical tensions.
Is it safe to invest during geopolitical crises?
Yes, it is safe to invest during geopolitical crises. One should invest for a longer duration as markets tend to be volatile in the short-term. Also, it is advisable to consider your risk profile and consult your investment advisor.
Why do crude oil prices increase during the war?
As the war in the Middle East region can significantly disrupt the global supply chain, eventually increase the prices of crude oil.
Which industry is mostly affected by rising crude oil prices?
Industries like aviation, logistics, etc., are significantly impacted by the rising crude oil prices.
How to invest in stocks during geopolitical crises?
To invest in stocks during geopolitical crises, one must open a demat and trading account and select the stocks of sectors which can perform well during such conditions. Pocketful also offers you an opportunity to open a lifetime free demat and trading account, as it also offers free brokerage on delivery trades.
As the war between Iran, the US and Israel is going on, the global prices of oil and gas are rising, because Iran produces a large amount of the world’s total consumption of crude oil. Hence, investors are curious about the impact of rising crude oil prices on Indian Stocks.
In today’s blog post, we will give you an overview of the best oil and gas stocks to watch as global prices surge.
Why Global Oil Prices Impact the Indian Oil and Gas Sector
India imports a larger portion of its crude oil and gas from different countries to complete its requirements. Hence, any changes in global crude oil and gas prices can significantly impact the Indian crude oil prices. As in the current scenario, global crude oil prices are rising because of the war between Iran, the USA and Israel and the global crude oil supply chain is disrupted, leading to a rise in crude oil prices globally. This price rise will benefit the companies engaged in exploration, selling and marketing of oil and gas in India.
Best Oil and Gas Stocks to Watch in India
The best oil and gas stocks to watch in India are as follows:
Reliance Industries Limited
Oil and Natural Gas Corporation Limited
Bharat Petroleum Corporation Limited
GAIL Limited
Oil India Limited
Hindustan Petroleum Corporation Limited
Adani Total Gas Limited
Petronet LNG Limited
Chennai Petro Limited
Mahanagar Gas Limited
Company
Current Market Price (INR)
Market Capitalisation (in INR crore)
52-Week High
52-Week Low
Reliance Industries Limited
1394
1886426
1612
1115
Oil and Natural Gas Corporation Limited
265
333818
293
205
Bharat Petroleum Corporation Limited
300
130155
392
260
GAIL Limited
147
96917
203
144
Oil India Limited
473
76898
524
322
Hindustan Petroleum Corporation Limited
346
73729
508
320
Adani Total Gas Limited
515
56640
798
454
Petronet LNG Limited
289
43290
326
264
Chennai Petroleum Corporation Limited
1054
15695
1103
516
Mahanagar Gas Limited
1013
10010
1587
989
(As of 17th March 2026)
Overview of Best Oil and Gas Stocks
1. Reliance Industries Limited
Reliance Industries Limited company was incorporated in 1966 by Dhirubhai Ambani. After the death of Dhirubhai Ambani, his son Mukesh Ambani took over the company. And later expanded the company’s operations into various sectors, such as retail and communication. The company’s headquarters is in Mumbai.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
12.58
25.63
35.9
(As of 17th March 2026)
2. Oil and Natural Gas Corporation Limited
This company was founded in 1956 and is one of the largest public sector energy companies in India. It works under the Ministry of Petroleum and Natural Gas. ONGC is primarily engaged in the exploration, production, and distribution of crude oil and natural gas. Its headquarters are situated in New Delhi.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
15.21
72.89
141.96
(As of 17th March 2026)
3. Bharat Petroleum Corporation Limited
The company was founded in 1952 as a result of a joint venture between the Indian Government and Burmah Shell. Later, when the government acquired the Burmah Shell, BPCL converted into a fully owned government company. The company is engaged in the marketing and distribution of petroleum and its related products to retail users. The company’s headquarters is situated in Mumbai.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
14.66
70.66
38.87
(As of 17th March 2026)
4. GAIL Limited
GAIL Limited company was established in 1984 as a public sector undertaking to develop a natural gas transmission network in India. The company was listed on the Indian Stock Exchange in 1997. The company is expanding its natural gas pipeline network across the country. The company’s headquarters is in New Delhi.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
(5.9)
33.76
59.81
(As of 17th March 2026)
5. Oil India Limited
Oil India Limited company was founded in 1959 and works under the Ministry of Petroleum and Natural Gas. The company mainly operates in the North-East region of India. It became a publicly listed company in 2009. The company has exploration facilities in other countries. Its headquarters are situated in Assam.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
25.07
176.19
448.22
(As of 17th March 2026)
6. Hindustan Petroleum Corporation Limited
The company was incorporated in 1974 and was initially known as Esso India, and later, after nationalisation, it was renamed as Hindustan Petroleum Corporation Limited. Later in 2018, it was acquired by ONGC Limited. The company got itself listed on the stock exchange in 1977. The company’s headquarter is situated in Mumbai.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
6.38
113.97
119.48
(As of 17th March 2026)
7. Adani Total Gas Limited
Adani Total Gas Limited is one of the leading players in the gas distribution space. The company was incorporated in 2005, and over time, it has expanded its presence in supplying piped natural gas to households, industries, etc. It became a publicly listed company in 2018. The headquarters of the company is situated in Ahmedabad.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
(14.29)
(42.44)
(30.52)
(As of 17th March 2026)
8. Petronet LNG Limited
The company was incorporated in 1998 to develop Liquid Natural Gas and distribute it among the citizens of the country. The company was listed on the Indian Stock Exchange in 2004. Over the years, the company has expanded its operations and developed infrastructure to supply LNG. The headquarters of the company is situated in New Delhi.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
1.55
23.94
26.14
(As of 17th March 2026)
9. Chennai Petroleum Corporation Limited
Chennai Petroleum Corporation Limited company was incorporated in 1965 and was initially known as Madras Refineries Limited. It was established as a joint venture between the Government of India, AMOCO, and the National Iranian Oil Company. Later in 2001, after the IOCL increased its stake in the company, it was renamed as Chennai Petroleum Corporation Limited. The headquarters of the company is situated in Chennai.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
89.72
316.26
855.34
(As of 17th March 2026)
10. Mahanagar Gas Limited
Mahanagar Gas Limited company was established in 1995 as a result of a joint venture between GAIL and BG Group. The objective of the company is to provide a strong network of gas distribution in urban areas and to promote the use of cleaner fuels. It offers CNG along with PNG. The company became a publicly listed company in July 2016. The headquarters of the company is located in Mumbai.
1 Year Return (%)
3 Years Return (%)
5 Years Return (%)
(22.72)
2.96
(11.57)
(As of 17th March 2026)
Key Factors to Consider Before Investing in Oil and Gas Stocks
The key factors which one can consider before investing in oil and gas stocks are as follows:
Global Oil Prices: This is one of the key factors that one should consider before making any investment in oil and gas stocks. The companies engaged in the exploration of oil and gas may see fluctuation in their profit margins.
Government Regulations: The performance of the oil and gas sector is directly influenced by the government policies and regulations. Different types of subsidies and windfall taxes can significantly impact the company’s performance.
Financial Performance: The company’s performance is directly linked with their financial performance. Their profit margins, debt levels, cash flows, etc., can impact a company’s performance.
Demand: The global demand for oil and gas is influenced by economic and industrial activities. A growing economy generally has higher demand, which can help oil and gas companies.
Future Outlook of the Indian Oil and Gas Sector
The future outlook of the Indian oil and gas sector is very strong due to increasing demand for energy. The companies in India engaged in exploration, marketing and distribution of oil and gas are expected to grow in future. Along with this, the government is also subsidising the companies by promoting the usage of natural gas. However, these companies are diversifying into renewable energy but still have strong growth potential in the long run.
Conclusion
On a concluding note, due to the war between Iran, Israel and the USA, the global crude oil prices are rising, and there are various countries, such as India, which are significantly dependent on the import of oil from Arab countries. This will impact the profitability of the Indian companies engaged in the selling and distribution of oil and gas. One can invest in these companies for the medium to long term to earn a profit. But it is advisable to consult your investment advisor before making any investment decision. For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
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Why global rise in prices affecting Indian oil and gas stocks?
India imports a large portion of its crude oil from different countries. And if the global crude oil price rises, it can affect the profit margins of Indian oil and gas stocks.
Which factors should an investor consider before investing in oil and gas stocks?
There are various factors, such as the prices of global crude oil, government policies and regulations, and company profitability.
How to invest in oil and gas stocks?
To invest in crude oil and gas stocks, one must open a demat and trading account. Pocketful offers you an opportunity to invest in oil and gas stocks by opening a lifetime free demat account with zero brokerage on delivery.
How can geopolitical tension impact crude oil prices?
Due to geopolitical tensions, the global supply chain has been disrupted, pushing crude oil prices upward and making crude oil expensive in India.
Name the best Oil and Gas Stocks to purchase due to the Global Oil Price Surge?
The best oil and gas stocks to purchase amid the global oil price surge include Reliance Industries, ONGC, Oil India Limited, IOCL, BPCL, etc.
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.
India now sees a sharp rise in orders for induction cooktops – sudden swings in LPG price and worry about reliable supply push homes and small eateries to switch to electric heat. Data show that some online shops sold twenty to thirty times more induction units than before. Forecasts place the yearly growth of the domestic induction market at about 11.7 percent through 2030 – extra openings appear for firms that serve this area.
What Are Induction Stove Stocks?
Induction stove stocks represent shares of companies that manufacture or sell induction cooktops, electric cooking appliances, and other kitchen appliances. As the adoption of electric cooking in households continues to rise, these companies are likely to witness growth in their business operations.
Best Induction Stove Stocks in India
S.No
Company
Current Market Price (INR)
Market Capitalisation (in INR crore)
52-Week High
52-Week Low
1
Havells India Ltd
1,257
78,871
1,674
1,142
2
Crompton Greaves
241
15,541
364
217
3
V-Guard Industries Ltd
326
14,238
413
290
4
TTK Prestige Ltd
478
6,548
773
423
5
Bajaj Electricals Ltd
360
4,155
711
330
6
Hawkins Cookers Ltd
7,573
4,006
9,900
7,026
7
Orient Electric Ltd
160
3,417
255
149
8
HPL Electric
327
2,102
640
256
9
Stove Kraft Ltd
564
1,869
814
446
10
Butterfly Gandhimathi Appliances Ltd
625
1,118
844
566
(Data as of 09 April 2026)
A brief overview of the Best Induction Stove Stocks in India is given below:
1. Havells India Ltd
Havells India Ltd was established in 1958, and its headquarters are located in Noida. The company primarily manufactures electrical products such as wires, switches, and lighting as well as various home appliances. Over time, Havells has built a very strong brand value, particularly among urban households. Today, the company sells its products not only within India but also in international markets, having established itself as a trusted name.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-14.00%
5.54%
18.71%
(Data as of 09 April 2026)
2. Crompton Greaves Consumer Electricals
Crompton Greaves Consumer Electricals began in 1937 and keeps its main office in Mumbai. The firm builds fans, lighting equipment plus small appliances that people use every day. For many years, the Crompton label has appeared in Indian homes. Buyers respect the brand because its products last long and handle routine tasks without trouble – therefore, the company holds a trusted position.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-26.66%
-18.36%
-38.61%
(Data as of 09 April 2026)
3. V-Guard Industries Ltd
V-Guard Industries Ltd began its journey in Kerala in 1977. Today, its head office is located in Kochi. Initially, the company manufactured stabilizers; however, its operations have since expanded significantly. It now also manufactures wires, pumps, water heaters, and various kitchen appliances. While its presence was previously concentrated in South India, its products are now gradually becoming available across the entire country.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-9.44%
30.37%
34.69%
(Data as of 09 April 2026)
4. TTK Prestige Ltd
TTK Prestige Ltd was established in 1955 and operates out of Bengaluru. As a long-standing brand in the kitchenware sector, it enjoys high brand recognition among the public. The company manufactures a wide range of daily-use products, spanning everything from pressure cookers to induction cooktops. Over time, it has evolved its product offerings, thereby maintaining a strong presence in the market to this day.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-24.96%
-34.82%
-34.96%
(Data as of 09 April 2026)
5. Bajaj Electricals Ltd
Bajaj Electricals began in 1938 and has its main office in Mumbai. The firm produces electrical goods for households – lamps, fans plus kitchen devices. The public already recognises the Bajaj brand – a solid base of trust exists. Through the years the range of goods grew and the company now holds a large share of the kitchen appliance market.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-32.05%
-65.70%
-65.24%
(Data as of 09 April 2026)
6. Hawkins Cookers Ltd
Hawkins Cookers was founded in 1959 and operates out of Mumbai. The company is particularly renowned for its pressure cookers and cookware. Given that its products have been in use in India for a considerable period, the brand has successfully carved out a distinct identity for itself. Rather than venturing into numerous diverse categories, Hawkins has chosen to focus primarily on its core products, a strategy that has enabled it to maintain its enduring position within its specific market segment to this day.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-2.19%
22.14%
40.24%
(Data as of 09 April 2026)
7. Orient Electric Ltd
Orient Electric was established in 1954, and its head office is located in Delhi. Initially, it was primarily known for its fans; however, it now also manufactures lighting solutions and various home appliances. Over time, the company has progressively upgraded its product range. Even today, its fans and appliances are a common sight in many households, thereby maintaining its distinct brand identity.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-19.87%
-33.28%
-47.61%
(Data as of 09 April 2026)
8. HPL Electric & Power Ltd
HPL Electric was founded in 1992, and its headquarters are situated in Gurugram. The company manufactures electrical equipment such as meters, switches, and lighting products. While its operations lean more towards the technical side, it also produces a range of consumer products. The company maintains a significant presence within India’s power and electrical sectors.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-19.63%
272.48%
578.23%
(Data as of 09 April 2026)
9. Stove Kraft Ltd
Stove Kraft Ltd was established in 1999 and operates out of Bengaluru. The company manufactures kitchen-related products such as cookware, gas stoves, and induction cooktops. Today, its products are available both online and in local markets. The pricing has been kept affordable, which has led to increased usage in average households. Over time, the company has successfully established a strong reputation in the market.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-12.31%
48.40%
11.46%
(Data as of 09 April 2026)
10. Butterfly Gandhimathi Appliances Ltd
Butterfly Gandhimathi Appliances Ltd was established in 1986 and operates out of Chennai. The company manufactures mixer grinders, cooktops, and various other kitchen appliances. It holds a long-standing reputation in South India, where its products have been used by consumers for generations. The company is now expanding its product presence into other states as well; consequently, its products are becoming visible in a much wider geographical area than before.
The key performance metrics of the Best Induction Stove Stocks in India are mentioned below:
Company
Operating Margin (%)
Net Profit Margin (%)
ROE (%)
ROCE (%)
P/E (x)
Havells India Ltd
9.33
6.75
17.68
22.51
65.09
Crompton Greaves
10.22
7.17
16.39
19.22
40.97
V-Guard Industries Ltd
7.86
5.62
14.95
18.93
49.59
TTK Prestige Ltd
9.63
3.97
5.99
12.71
72.75
Bajaj Electricals Ltd
4.51
2.76
7.73
11.05
47.02
Hawkins Cookers Ltd
14.14
10.27
29.92
38.61
33.26
Orient Electric Ltd
4.41
2.68
11.98
17.73
53.35
HPL Electric
12.78
5.52
10.27
22.47
28.32
Stove Kraft Ltd
5.50
2.65
8.17
12.32
60.48
Butterfly Gandhimathi Appliances Ltd
5.68
3.76
10.02
14.47
32.88
(Data as of March 2025)
Key Trends Driving the Induction Stove Market in India
LPG Supply Concerns Due to Middle East Conflict : In recent times, rising tensions between Iran and the US, as well as within the broader Middle East region, have heightened concerns regarding the global supply of LPG. According to reports, whenever uncertainty arises regarding the availability or pricing of LPG, many households and small businesses increasingly turn to electric cooking alternatives, such as induction cooktops.
Backup Cooking Option : Many urban households have now begun keeping an induction cooktop as a backup cooking solution. Since it can be utilized instantly in the event of a gas run-out or delays in supply, the demand for this appliance is on the rise.
Growing Use in Urban Homes : Portable cooking appliances prove particularly useful in small apartments, rental homes, and hostels. For this very reason, the usage of induction cooktops is expanding rapidly across urban areas.
Growth in Online Sales : Sales of kitchen appliances on e-commerce platforms have been consistently increasing. Factors such as online availability and attractive discounts also appear to be driving the growing demand for induction cooktops.
India’s induction cooktop market reached approximately $736 million in 2024.
Future Growth
It is estimated that this market could reach approximately $1.5 billion by 2033.
Growth Rate
The induction cooktop market in India is estimated to grow at a CAGR of approximately 11.7% by 2030.
Market Drivers
Due to urbanization, rising incomes, and online retail, the demand for kitchen appliances is growing rapidly.
Recent Demand Spike
Due to the shortage of LPG, sales of induction cooktops have increased by up to 25 times in several cities.
Risks of Investing in Induction Stove Stocks
Competition Risk : This sector is home to numerous established and new brands. Intense competition can exert pressure on companies’ profit margins and market share.
Commodity Price Risk : The operating costs of these companies are dependent on steel, copper, and electronic components. Any increase in the prices of these commodities can directly impact profitability.
Demand Cycle Risk : Kitchen appliances are not essential necessities but rather discretionary products. During an economic slowdown, demand for these products may decline, thereby impacting sales.
Technology Change Risk : The emergence of smart kitchen technologies and innovative cooking solutions could gradually alter the demand landscape for traditional induction products.
Induction cooking is gradually becoming more common in India, particularly as uncertainty surrounding LPG continues to rise. Consequently, companies associated with this sector have begun to attract attention. While this theme is currently nascent, it remains crucial to observe how demand evolves in the future. If you have an understanding of the consumer sector, overlooking this space would likely not be a prudent move. For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
S.NO.
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Induction stove stocks refer to the shares of companies that manufacture induction cooktops and kitchen appliances.
Why are induction stove stocks trending in 2026?
These stocks are currently a topic of discussion because people are shifting towards electric cooking due to issues regarding the pricing and supply of LPG gas.
Is induction cooking popular in India?
Yes, its usage is growing rapidly, particularly in urban areas and smaller households.
Is this a long-term investment theme?
While this is currently a nascent trend, if demand continues to rise, it could present a long-term investment opportunity.
What drives demand for induction cooktops?
Factors such as LPG-related issues, faster cooking speeds, and ease of use are the primary drivers behind the demand for induction cooktops.
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.
The escalating tensions surrounding the Iran–US conflict are having a direct impact on both the global oil market and the Indian stock market. Following the emergence of a potential war scenario, crude oil prices surged rapidly, and risk sentiment heightened across global markets. Concurrently, the Indian market witnessed a downturn, resulting in a recorded decline of over ₹23 lakh crore in investor wealth. Since India imports approximately 85% of its crude oil requirements, rising oil prices inevitably impact various sectors and individual stocks. In this blog, we will explore which Indian stocks are being affected both negatively and positively by the Iran-US conflict, and the reasons behind these impacts.
Why the Iran-US War Is Impacting the Indian Stock Market?
Rising Crude Oil Prices : Escalating tensions in the Middle East, triggered by the Iran–US conflict, have heightened uncertainty within the global crude oil market. Amidst this situation, Brent crude prices have surged rapidly, with several reports suggesting they could reach the range of $95–$100 per barrel. When oil prices rise, import-dependent economies like India face a direct impact, as the country procures approximately 85% of its crude oil requirements from abroad.
Strait of Hormuz Supply Risk : The Strait of Hormuz is the most critical route for the global oil supply, through which approximately 20% of the world’s oil trade passes. Nearly 40% of India’s oil imports arrive via this route. If a disruption occurs along this route due to the Iran–US conflict, both oil supply and prices could be adversely affected.
FII Selling and Market Pressure : When geopolitical tensions escalate, foreign investors often withdraw capital from emerging markets. Consequently, increased FII selling in India exerts downward pressure on key indices such as the Nifty and Sensex.
Impact on the Rupee and Inflation : Rising oil prices inflate India’s import bill, which can intensify pressure on the Rupee and heighten inflation risks. This, in turn, impacts the profitability of various sectors as well as overall market sentiment.
Stocks Most Negatively Affected by the Iran–US War
The most significant impact of an Iran–US conflict falls upon oil prices and transportation costs. When tensions escalate in the Middle East, crude oil becomes more expensive, and the effects are felt first in those sectors whose operating costs are heavily dependent on energy and fuel.
Sectors and Stocks Under Pressure by the Iran-US War
Sector
Key Indian Stocks
Aviation
InterGlobe Aviation, SpiceJet
Oil Marketing
IOC, BPCL, HPCL
Paint And Chemicals
Asian Paints, Berger Paints, Pidilite
Automobile
Maruti Suzuki, Tata Motors
Cement & Infrastructure
UltraTech Cement, ACC, Shree Cement
1. Aviation Sector
Fuel constitutes the largest expense for airline companies. A rise in crude oil prices drives up the cost of ATF (Aviation Turbine Fuel), thereby increasing the operating costs for airlines.
Key Affected Stocks :
InterGlobe Aviation (IndiGo)
SpiceJet
When fuel costs rise, airline profits decline; consequently, aviation stocks often remain under pressure during periods of geopolitical tension.
2. Oil Marketing Companies (OMCs)
Oil marketing companies refine crude oil and sell petrol and diesel. When crude oil prices rise suddenly, these companies’ costs increase; however, it is not always possible to raise fuel prices immediately.
Key Affected Stocks
Indian Oil Corporation (IOC)
Bharat Petroleum (BPCL)
Hindustan Petroleum (HPCL)
Consequently, volatility and a decline are often observed in OMC stocks during periods of oil price spikes.
3. Paint and Chemical Companies
Paint and specialty chemical companies utilize various raw materials derived from crude oil. When oil prices rise, their input costs increase.
Key Affected Stocks :
Asian Paints
Berger Paints
Kansai Nerolac
Pidilite Industries
Rising raw material costs can lead to a contraction in these companies’ profit margins.
4. Automobile Sector
Rising fuel prices also impact vehicle demand. Furthermore, an increase in transportation and logistics costs can affect the overall cost structure of auto companies.
Key Affected Stocks :
Maruti Suzuki
Tata Motors
Ashok Leyland
During such times, volatility within the auto sector often tends to increase.
5. Cement and Infrastructure Sector
The cement industry is energy-intensive, involving significant fuel and transportation expenses. Rising oil and energy prices can lead to an increase in the operating costs of cement companies.
Key Affected Stocks :
UltraTech Cement
ACC
Shree Cement
As a result, the cement sector may also come under pressure during periods of energy price spikes.
Concerns regarding energy supplies tend to escalate during an Iran–US conflict. When oil prices rise or global trade routes are disrupted, certain sectors may actually stand to benefit directly.
Sectors That May Benefit From the Iran–US War
Sector
Major Stocks
Oil Exploration
ONGC, Oil India
Energy
Reliance Industries, Vedanta
Shipping
Great Eastern Shipping, SCI
Defence
HAL, BEL, Bharat Dynamics
1. Oil Exploration Companies
When crude oil prices rise, the earnings of oil producers increase, as these companies derive their revenue directly from oil production and sales.
Key Stocks
ONGC
Oil India
During spikes in oil prices, the earnings of these companies tend to strengthen; consequently, investors keep a close watch on these stocks in the market.
2. Large Energy Companies
Some Indian companies operate in both the energy and petrochemical sectors. A rise in oil prices can provide a boost to their energy businesses.
Key Stocks
Reliance Industries
Vedanta
Sustained strength in energy demand and commodity prices provides support to various segments of these companies.
3. Shipping Companies
During periods of tension in the Middle East, there are shifts in oil and cargo transportation patterns. Frequently, tanker freight rates rise, which can lead to an increase in the income of shipping companies.
Key Stocks
Great Eastern Shipping
Shipping Corporation of India
An uptick in shipping demand can lead to an improvement in the earnings of these companies.
4. Defence Sector
During times of global conflict, there is a likelihood of increased defence spending. This can result in new orders for companies engaged in the manufacturing of defence equipment.
Key Stocks
Hindustan Aeronautics (HAL)
Bharat Electronics (BEL)
Bharat Dynamics
India’s defence manufacturing sector is expanding rapidly, and export orders are also on the rise; therefore, stocks within this sector attract particular attention during such times.
Key Market Indicators to Watch During the Iran–US War
Crude Oil Prices : The oil market is the first to react whenever tensions escalate in the Middle East. Since India is heavily dependent on oil imports, a rise in crude oil prices can quickly shift market sentiment.
Strait of Hormuz Developments : Approximately 20% of global oil shipments pass through this route. If military tensions intensify in this region, both oil supply and shipping activity could be adversely affected.
Global Markets : The impact of market movements in the US and Europe is often reflected in Asian markets during the subsequent trading session. Global indices tend to experience a sharp surge in volatility whenever news regarding conflicts such as war emerges.
Defence Spending News : During times of geopolitical conflict, the defence sector invariably comes into the spotlight. Given that India has allocated a defence budget exceeding ₹7.8 lakh crore for FY2026, investors keep a keen eye on defence companies.
FII Activity : In such circumstances, foreign investors often seek to mitigate risk. If Foreign Institutional Investors (FIIs) engage in sustained selling, the repercussions are inevitably felt across Indian indices.
Key Takeaways for Indian Investors
News-driven trading intensifies : In situations resembling war, the market often reacts more to news headlines than to underlying fundamentals; consequently, one may witness both sudden spikes and sharp declines.
Keep an eye on commodity-linked stocks : Movements in stocks related to oil, metals, and energy often fluctuate in tandem with global commodity prices.
The impact on export companies may vary : A weakening Rupee can prove beneficial for certain export-oriented companies, particularly those within the IT and pharmaceutical sectors.
The market focuses on the shipping and defense sectors : As global tensions escalate, activity within these sectors specifically regarding logistics routes and defense orders tends to increase.
Risk management becomes essential : During such times, investors typically steer clear of over-leveraged positions and place a greater emphasis on portfolio diversification.
Conclusion
Market volatility has intensified due to the conflict between Iran and the US. Oil prices and global news are impacting various sectors. The shares of some companies have come under pressure, while activity has surged in sectors such as energy, defense, and shipping. In such times, it is crucial for investors to avoid making hasty decisions and to take action only after carefully observing market developments.
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Frequently Asked Questions (FAQs)
Which sectors are most affected by the Iran-US war?
Aviation, oil marketing, auto, and paint sectors are most affected.
Which sectors may benefit from the Iran–US war?
Activity may increase in the oil exploration, defense, and shipping sectors.
Why does crude oil affect the Indian market?
India imports a lot of oil, so when oil becomes expensive, costs for many companies increase.
Is the stock market always negative during wars?
No, some sectors fall, but some sectors also see growth.
Which stocks do investors usually track during such conflicts?
ONGC, Oil India, HAL, BEL, and some shipping companies are often monitored.
The geopolitical conditions are getting worse with every passing day. The escalation between the US, Israel, and Iran is negatively impacting the stock markets across the world. There are certain sectors and stocks that can perform well during such market conditions.
In today’s blog post, we will give you an overview of the best stocks to buy in a wartime situation between Iran and the US.
Best Stocks to Buy in Wartime as Iran-US clash intensifies
Defence and Aerospace: The government is increasing the defence budget to increase its weapons, military capabilities and to modernise them. These companies will benefit from increased defence procurement and strong government orders. The stocks which directly benefit from it are as follows:
1. Hindustan Aeronautics Limited
This is one of India’s largest aerospace and defence companies. The company is engaged in manufacturing fighter jets, helicopters, and aircraft components.
2. Bharat Electronics Limited
The company manufactures various radar systems, missiles, and related electronics and communication systems for the military. The company is receiving a large defence order.
3. Paras Defence and Space Technologies Limited
Paras Defence works in defence electronic equipment, optics, and space technologies. They supply specialised defence equipment.
4. Bharat Forge Limited
This is a leading engineering company engaged in the manufacturing of artillery systems. The company is actively participating in advanced artillery and weapon systems.
Oil Sector: As the war is going on in the region which supplies crude and refined oil to the entire world. And this war-like situation can disrupt the supply chain, causing the oil prices to increase across the country.
5. Reliance Industries Limited
Energy companies such as Reliance Industries Limited will be the direct beneficiary of this crude oil price rise. It has the largest refining capacity with global energy operations.
6. Oil and Natural Gas Corporation Limited
Oil and Natural Gas Corporation Limited is a company which is among India’s largest crude oil exploration companies. Due to higher prices, the profits of this company will increase.
Metal Sector: Due to a war-like situation, the industrial metals and raw materials can see increased demand during the global uncertainties. This can be beneficial for companies engaged in the metal and commodities sector.
7. Vedanta Limited
Vedanta is a global mining company and is engaged in producing zinc, aluminium, iron ore, and oil. As the company has strong exposure in the metal industry, it will benefit from the commodity price rise due to global uncertainties.
8. Tata Steel Limited
The steel demand has increased, especially during the war situation, because of increasing economies due to infrastructure, manufacturing, and defence production. The company has global operations and will directly benefit from them.
IT Sector: Due to a weaker rupee because of geopolitical tension, the Indian IT companies will benefit from it. As the major revenue of these companies comes in dollars.
9. Infosys Limited
Infosys is one of the largest IT companies in India. The company’s major source of revenue comes from exports, as the company has a global client base. Weaker rupee and increasing global digital demand will help the company in increasing its revenue and profit.
Pharma Sector: The pharma and healthcare industry is considered a defensive sector; the demand for pharma products will be stable during the economic downturn and war situations.
Sun Pharma Limited:
In the Indian pharma sector, Sun Pharma Limited is a prominent player. The company has a global presence and is specialised in the manufacturing of speciality drugs. The company has a consistent revenue source and sells its products across the world.
Investment during wartime requires a strategic and balanced approach as the market will be highly volatile. Panic selling is not suggested for a long-term investor. However, instead of this, one should focus on diversifying their portfolio across different sectors and asset classes. Short-term speculation should be avoided and focus on strong fundamental companies which have lower debt levels, consistent earnings and profits.
Conclusion
On a concluding note, as the economic tension is rising between the US, Israel and Iran, the equity market is highly volatile. Traders are in panic, exiting their positions in order to avoid any loss due to volatility. However, on the other hand, long-term investors are looking for opportunities in this market and are opting for a balanced approach to investing. There are various sectors which will benefit from this war-like situation, such as energy, defence, metal, oil, pharma, etc. But it is advisable to consult your investment advisor before making any investment decision.
S.NO.
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Why do defence stocks perform well during geopolitical tension?
Defence stocks can be considered as a good investment option during the increasing geopolitical tension, as countries tend to increase their spending on military equipment to upgrade their defence system.
Why are crude oil prices rising during a war-like situation?
As the current conflict is rising in the region which produces the largest amount of crude oil. And due to the disruption in the supply chain, global oil prices are rising.
Is it safe to invest in stocks during war?
Yes, it is safe to invest in stocks during a war situation, but only for the long term, and investment can only be made in those companies which are fundamentally strong and have lower debts. There are certain sectors which can perform well during such a war situation.
Which sectors can perform well during a war between Iran and the US?
The sectors which can perform well during the war between Iran and the US are pharma, defence, oil and energy, metal and IT companies.
Why does the stock market fall during the war?
The stock market generally falls during war conditions because Investors become uncertain about the global economic conditions, supply chain disruption, inflation, and rising commodity prices, etc.
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.
Capital goods stocks are crucial to India’s economy, as these companies manufacture machinery and engineering equipment for major sectors such as infrastructure, power, railways, and manufacturing. With the government’s capital expenditure projected to exceed ₹12 lakh crore in 2026, growth expectations in this sector have increased. Consequently, many investors are now focusing on capital goods stocks. In this article, we’ll explore some of the key capital goods stocks for 2026 and their key insights.
What Are Capital Goods Stocks?
Capital Goods Stocks are shares of companies that manufacture machines, equipment, and engineering systems used in the construction of other goods or infrastructure. Simply put, these companies produce the machinery needed to run the production process. Therefore, as industrial development and infrastructure projects increase in a country, the demand for companies in the Capital Goods sector also increases.
Examples of Capital Goods
Capital goods typically include equipment that is used in industries for a long time. Such as industrial machinery used in factories, heavy construction equipment for construction, turbines and boilers used in power plants, and transformers and other electrical equipment for power distribution. These machines enable industries to achieve large-scale production and infrastructure development.
A brief overview of the best Capital Goods Stocks in India is given below :
1. Larsen & Toubro Ltd
Larsen & Toubro Ltd (L&T) is a well-known engineering and construction company in India. Founded in 1938 by engineers Henning Holck-Larsen and Søren Toubro, the company is headquartered in Mumbai. L&T is involved in the construction of major infrastructure projects, including metros, highways, power plants, and industrial plants. It also handles heavy engineering and technology projects and has been involved in numerous projects in India and abroad.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
18.73%
83.03%
149.21%
(Data as of 08 Mar 2026)
2. Adani Ports & Special Economic Zone Ltd
Adani Ports & Special Economic Zone Ltd was incorporated in 1998 and is headquartered in Ahmedabad, Gujarat. It is one of the largest private sector port operating companies in India. Adani Ports develops and operates several seaports in the country, handling various cargoes, including containers, coal, and other goods. Apart from this, the company also provides port-related logistics and supply chain services, which helps in smooth running of business activities.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
25.09%
111.74%
96.35%
(Data as of 08 Mar 2026)
3. Hindustan Aeronautics Ltd
Hindustan Aeronautics Ltd (HAL) is a leading Indian aerospace and defense company. It was founded in 1940 in Bengaluru and remains headquartered there today. HAL primarily engages in the design, manufacture, and maintenance of aircraft, helicopters, and critical systems. HAL produces numerous aircraft and helicopters for the Indian Air Force and other defense forces. The company is also actively involved in research and development related to aerospace technology.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
16.36%
182.36%
649.49%
(Data as of 08 Mar 2026)
4. Adani Enterprises Ltd
Adani Enterprises Ltd was founded in 1988 by Gautam Adani and is headquartered in Ahmedabad, Gujarat. It is considered the flagship company of the Adani Group and has played a key role in the development of several new businesses. Over time, the company has expanded into various sectors, including airport operations, data centers, mining services, and infrastructure projects. Adani Enterprises is known for frequently launching and expanding businesses in new sectors.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-8.61%
10.97%
127.76%
(Data as of 08 Mar 2026)
5. Eicher Motors Ltd
Eicher Motors Ltd was founded in 1948 and is headquartered in New Delhi. The company operates in the automobile sector and is known for its two core businesses: the Royal Enfield motorcycle brand, which is popular in India and several international markets. The second is the manufacturing of trucks and buses through Volvo Eicher Commercial Vehicles. The company’s primary business is the design, manufacture, and sale of motorcycles and commercial vehicles.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
46.98%
144.55%
178.10%
(Data as of 08 Mar 2026)
6. InterGlobe Aviation Ltd
InterGlobe Aviation Ltd operates IndiGo, one of India’s largest airlines. The company was founded in 2006 and is headquartered in Gurugram, Haryana. IndiGo operates passenger flight services on both domestic and international routes within India. The company’s primary business is providing air transport services, transporting passengers and cargo, and managing aircraft operations.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
-11.97%
133.05%
144.81%
(Data as of 08 Mar 2026)
7. Cummins India Ltd
Cummins India Ltd was founded in 1962 and is headquartered in Pune, Maharashtra. The company is part of the global Cummins Group. Cummins India primarily manufactures and develops diesel and gas engine products. It also provides power generation equipment, industrial engines, and related services. Its engines and power systems are used in many industrial and infrastructure sectors in India.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
63.13%
189.72%
428.65%
(Data as of 08 Mar 2026)
8. Polycab India Ltd
Polycab India Ltd was founded in 1996 and is headquartered in Mumbai. The company is primarily known for manufacturing wires and cables. Polycab also manufactures a variety of electrical products such as switches, LED lights, fans, and other electrical equipment. The company’s products are used for domestic, commercial, and industrial purposes. In addition to India, Polycab also exports its products to several other countries.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
66.62%
72.28%
505.47%
(Data as of 08 Mar 2026)
9. Siemens Ltd
Siemens Ltd is the Indian subsidiary of Germany’s Siemens AG. The company was founded in India in 1922 and is headquartered in Mumbai. Siemens operates in various technological and industrial sectors, including automation, smart infrastructure, mobility, and energy solutions. The company provides technological solutions and equipment for industries, cities, and transportation systems.
Know the Returns:
1Y Return (%)
3Y Return (%)
5Y Return (%)
22.12%
72.28%
216.54%
(Data as of 08 Mar 2026)
10. CG Power & Industrial Solutions Ltd
CG Power & Industrial Solutions Ltd was founded in 1937 and is headquartered in Mumbai. The company primarily specializes in electrical equipment and industrial systems. CG Power manufactures transformers, motors, and other electrical equipment used in power generation, transmission, and industrial machinery. The company provides its products and solutions in India and several international markets.
The key performance metrics of Capital Goods Stocks in India are mentioned below:
Company
Operating Margin (%)
Net Profit Margin (%)
ROE (%)
ROCE (%)
Debt to Equity
Larsen & Toubro Ltd
10.33
6.91
15.39
14.89
1.33
Adani Ports & Special Economic Zone Ltd
51.32
35.13
17.81
13.94
0.73
Hindustan Aeronautics Ltd
34.95
26.86
23.91
17.41
0.00
Adani Enterprises Ltd
12.78
7.65
14.88
8.29
1.60
Eicher Motors Ltd
28.02
21.38
22.23
23.08
0.01
Interglobe Aviation Ltd
15.68
8.98
77.47
15.52
0.19
Cummins India Ltd
22.53
16.68
26.44
29.60
0.00
Polycab India Ltd
12.80
9.12
20.55
27.96
0.01
Siemens Ltd
13.22
12.12
15.90
16.45
0.00
CG Power & Industrial Solutions Ltd
13.67
9.81
25.35
32.05
0.00
(Data as of 08 Mar 2026)
Why Capital Goods Stocks Are Growing in India
Infrastructure Development : Infrastructure spending in India has steadily increased over the past few years. The government is working on major projects such as roads, railway lines, metro networks, and airports. These projects require heavy machinery, engineering services, and electrical equipment to complete them. This is driving a surge in new projects and orders for capital goods companies.
Manufacturing Expansion : Special attention is being paid to strengthening the manufacturing sector in India. The opening of new factories and industrial units increases the demand for machinery and industrial equipment. This continuously provides new business opportunities for capital goods companies and accelerates the sector’s growth.
Renewable Energy Projects : India is rapidly moving towards clean energy. With the expansion of solar and wind projects, the need for power transmission and electrical infrastructure is also increasing. Many of the equipment used in these projects are manufactured by capital goods companies, thus directly benefiting this sector.
Government Policy Support : Several government schemes have been designed to promote industry and infrastructure. Initiatives like the PLI scheme and the National Infrastructure Pipeline aim to increase investment in manufacturing and large projects. This also maintains strong demand for engineering and machinery manufacturing companies.
Strong Order Books for Engineering Companies : Many large engineering companies already have orders for projects spanning several years. When a company has a strong order book, it indicates that it will not face any shortage of work in the future. This is why investors pay close attention to such capital goods stocks.
Key Factors to Consider Before Investing in Capital Goods Stocks
Order Book Strength : A strong order book is crucial for any capital goods company. If a company has orders for large projects in the coming years, it can help predict future earnings. A strong order book also indicates that the company is receiving consistent market demand.
Return on Capital Employed (ROCE) : ROCE indicates how effectively a company is utilizing its invested capital. A good ROCE indicates that it is generating better returns from its business.
Debt Levels : Capital goods companies’ projects are large and capital-intensive, so some debt is normal. However, excessive debt can put a strain on a company’s profitability and financial stability, so debt levels should be carefully monitored before investing.
Project Execution Capability : Many projects in this sector are large and complex. Companies that can complete projects on time and within budget have better credibility and profitability.
Sector Exposure : Companies that operate in multiple sectors, such as power, infrastructure, railways, or defense, are considered stronger. Having a presence in different sectors increases a company’s chances of consistently receiving new projects.
Risks of Investing in Capital Goods Stocks
Economic Slowdown : The Capital Goods sector relies directly on capital expenditure (Capex). If the economy slows down or companies reduce investment in new projects, both orders and earnings for companies in this sector could be affected.
Raw Material Price Fluctuations : This sector uses a significant amount of raw materials, such as steel, copper, and aluminum. Sharp price fluctuations can increase companies’ costs, putting pressure on profits.
Project Delays : Capital Goods companies often work on large infrastructure and industrial projects. Delays related to land, permits, or funding can prevent projects from being completed on time, impacting company earnings.
Policy Changes : Changes in government policies or regulations can impact the infrastructure and manufacturing sectors. If government support for a project or sector is reduced, new orders for Capital Goods companies may also decline.
Simply put, capital goods companies play a crucial role in a country’s infrastructure and industrial development. With the growth of road, railway, energy, and manufacturing projects in India, this sector’s importance is increasing. Therefore, many investors view these companies with a long-term perspective. However, before investing in any stock, it’s always important to understand the company’s performance and the state of the sector.
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These are shares of companies that manufacture machinery and industrial equipment used in factories and infrastructure projects.
Why are Capital Goods Stocks important?
Because these companies provide other industries with machinery and technical equipment needed for production.
Which industries use capital goods the most?
They are mainly used in infrastructure, manufacturing, power, railways, and defense sectors.
Can beginners invest in Capital Goods Stocks?
Yes, but it’s important to understand the company’s performance and the sector’s situation before investing.
What affects Capital Goods Stocks the most?
Government infrastructure spending, new projects, and industrial investment affect these stocks the most.
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.
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