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What are Candlestick Patterns? 38 Candlestick Patterns Every Trader Must Know

Do not be concerned if you have seen a trading chart and are wondering, “What am I supposed to do with this?” Every single trader has gone through this experience. Although the small candles on a chart may appear random and confusing initially. But once understood properly, they provide insight into what buyers/sellers are thinking about while trading. After you learn all of the candlestick patterns, you will see the markets from a different perspective altogether.

This blog includes 38 different candlestick patterns that every trader needs to know. We will try to keep it simple without complex terms or unnecessary jargon, and towards the end, you will be able to comprehend any particular candle and instantly know what the current market sentiment is: Bullish, bearish, or in a range.

Basics of Candlesticks

Let us start with an overview of what the candlestick is before going through the candlestick patterns. The candlestick consists of three main sections.

1. Candlestick Body

The body represents the overall movement of the price; therefore, it is thicker than the upper shadow and lower shadow.

A green or white body indicates that the price moved up; therefore, buyers were dominant.
A red (or black) body means the price ended lower and sellers had the upper hand.

2. The Wicks (or Shadows)

The thin lines above and below the body are called wicks.

The upper wick shows how high the price went.
The lower wick shows how low it dropped.

3. Open and Close

These two points tell the real story: open is where the candle started, and Close is where it ended. A big difference between the open and close usually means there was strong buying or selling pressure.

4. Timeframe

Every candle represents a specific period. It could be 1 minute, 15 minutes, 1 hour, or even a full day. Shorter timeframes show more sudden movements, while longer timeframes give you a clearer overall picture.

Single Candlestick Patterns

Bullish

1. Hammer – It is formed after a downtrend and signals that buyers are stepping back in. The long lower work means the market rejected lower prices, which suggests a possible bounce.

2. Inverted Hammer – This candle appears at the bottom of a downtrend with a long upper wick. It shows buyers tried to push prices up and may try a full reversal soon.

3. Dragonfly Doji – It opens and closes near the top of the candle with a long lower wick. This shows sellers pushed the price down, but buyers took over, often leading to a bullish reversal.

4. Bullish Marubozu – A strong green candle with no wicks. It shows buyers were in full control, indicating strong bullish sentiment.

5. Spinning Top – This is a small bullish candle with long wicks on both sides. It shows indecision but still gives an advantage to buyers.

6. Paper Umbrella – This candle looks similar to a hammer with a small body and a long lower wick. It shows the price was pushed down but quickly recovered, signalling possible strength.

Bearish

7. Shooting Star – This candle is formed at the top of an uptrend with a long upper wick. It shows buyers tried to push higher but failed, giving sellers the upper hand.

8. Hanging Man – It appears near the top of an uptrend and resembles a hammer and warns that the trend might be weakening as sellers are gaining power.

9. Gravestone Doji – This candle opens and closes near the low with a long upper wick, which means buyers pushed prices up but could not keep them there, often signalling a bearish reversal.

10. Bearish Marubozu – A red candle without wicks. Sellers dominated the entire session, showing strong downward pressure.

11. Spinning Top – This is a small red candle with long wicks. The market is indecisive, but sellers have a bit more control.

12. Long-legged Doji – It has long wicks on both sides, showing major indecision. Buyers and sellers were equally strong, and the next candle often decides the direction.

Double Candlestick Patterns

Bullish

13. Bullish Engulfing – This is a big green candle that completely covers the previous red candle. It is a strong sign that buyers have taken over, and a reversal may be starting.

14. Piercing – It is a bullish candle that opens lower but closes above the midpoint of the previous red candle. This shift suggests buyers are coming back with strength.

15. Tweezer Bottom – In this candlestick pattern, two candles touch the same low, showing strong support. It often marks the end of a downtrend and a potential bounce upward.

16. Bullish Harami – In this pattern, a small green candle fits inside a larger red candle. This shows selling pressure is slowing down, hinting at a reversal.

17. Bullish Harami Cross – Similar to a Harami, but the second candle is a doji. It signals that momentum is shifting to the buyers.

18. Morning Star – A three-candle bullish pattern showing selling, followed by indecision, and then a strong push upward. It’s one of the most reliable reversal signals.

Bearish

19. Bearish Engulfing – In this pattern, a big red candle engulfs the previous green candle. It shows sellers have taken control, and a downtrend may begin.

20. Dark Cloud Cover – A bearish candle opens higher but closes below the midpoint of the previous green candle. This shift shows rising selling pressure.

21. Tweezer Top – Two candles share the same high, creating strong resistance. It often signals that buyers are losing strength, and a reversal may follow.

22. Bearish Harami – A small red candle forms inside a larger green one. It hints that bullish momentum is fading.

23. Bearish Harami Cross – The second candle is a doji trapped inside the previous green candle. This increases the chances of a downward reversal.

24. Evening Star – The bearish version of the Morning Star. It starts with strong buying, moves into indecision, and ends with a strong bearish candle that signals sellers taking over.

Triple Candlestick Patterns

Bullish

25. Three White Soldiers – Three powerful green candles that are formed back-to-back. This shows sustained buying pressure.

26. Three Inside Up – Starts with a bearish candle, followed by a small bullish one inside it, and confirmed by a strong green candle. It signals a reversal to the upside.

27. Rising Three Methods – A bullish continuation pattern: a strong green candle, followed by small corrective candles, then another push upward. It confirms the uptrend is still healthy.

28. Upside Gap Two Crows – There are three candles: a long green candlestick followed by two small red candlesticks forming a gap which is higher than the first candle’s closing price, while the second red candle was below the closing price of the first red candle

Bearish

29. Evening Star – A three-candle pattern that mirrors the Morning Star. It shows buyers slowing down, and then sellers taking full control.

30. Three Black Crows – Three consecutive strong red candles. This pattern shows consistent selling pressure and a likely shift to a downtrend.

31. Three Inside Down – Starts with a bullish candle, followed by a small red candle inside it, and confirmed by a bigger red candle. It marks a shift toward selling pressure.

32. Three Outside Down – It is created when three consecutive candlesticks, starting with a bullish candle, are followed by a bearish candle that completely engulfs the first candle, and is capped off with a closing bearish candle that closes below the previous candlestick

33. Falling Three Methods – A bearish continuation pattern. After a strong fall, a few small bullish candles appear, then another big red candle confirms the downtrend.

34. Three Line Strike – It is created by three red candles in a row, and finally, there is one long green candle, which completes the pattern. It starts below and ends above the opening of the first candle. The pattern is a short pullback and continuation of the down trend despite the fourth bullish candle.

Read Also: Three Inside Up Pattern

Additional Candlestick Patterns

35. Belt Hold – Shows a sudden and strong movement in one direction. In a bullish belt hold, price opens low and closes high; in a bearish one, it opens high and closes lower.

36. Kicker Pattern – One of the strongest reversal signals. A gap between two candles with opposite colours and no overlap in the opposite direction of the trend, showing a sudden shift in market sentiment.

37. Mat Hold Pattern – A continuation pattern where the trend pauses with small candles, then continues strongly. It shows the underlying trend is still powerful.

38. Tasuki Gap – A gap appears in the trend, and the next candle partially fills it without closing it. This confirms the trend’s strength and suggests continuation.

Conclusion

Learning candlestick pattern recognition does not assure predicting every move in the market; in fact, no market participant can predict future activities of the market. Finding candlestick patterns needs a lot of practice and will become easier with time. It is important to combine your candlestick analysis with sound risk management techniques and trend analysis when making your trades.

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Frequently Asked Questions (FAQs)

What are candlestick patterns?
These patterns are chart formations and are created by price movements. This helps traders understand the market sentiments in a better way.
Do these patterns work on all timeframes?
Yes, they do, but higher timeframes are said to give more reliable signals.
Can I trade using only candlestick patterns?
You can do so, but it is suggested to combine them with trend analysis for better results.
Are long wicks good or bad?
It totally depends; long wicks usually suggest rejections or strong pushback from the opposite side.
How do I use candlestick charts to make trading decisions?
A candlestick chart helps you identify the momentum and direction of the stock, which can help you make your investment decision. However, along with these charts, it is essential to use different technical tools and consider the overall market condition before executing any trade.
Why do candlesticks have different shapes and sizes?
The size of the candle changes with the price movement of the stock.
What is a wick in a candlestick?
Wicks are shadows or lines that indicate where the price of a stock has fluctuated based on its opening and closing prices. A shadow represents the highest and lowest prices at which a security has been traded over time.
How can a beginner learn about the candlestick pattern?
A beginner’s first step is learning about the candlestick structure and identifying a few basic candlestick patterns. He can do this through books, online tutorials, educational videos, etc.
Who discovered the first candlestick pattern?
The candlestick pattern was first discovered by a rice trader in Japan, Homma Munesiha, in the 1700s.
Should beginners learn candlesticks?
Yes! They are one of the easiest and most helpful ways for understanding the market behaviour.

December 22, 2025

Types of Foreign Direct Investment (FDI)Explained

When a company plans to grow outside its home country, it steps into foreign direct investment. This move helps a business build or buy operations in another market and gain long-term stability.

At its core, FDI is about taking real ownership in a foreign business. Through this companies can easily expand into new markets and can also acquire funds for supply chain, research, and other operations.

But before making the move, every business must understand which path suits them. In this guide, you will learn the key types of FDI, how foreign direct investment types work, and where common FDI types fit in global expansion.

What Is FDI?

Foreign Direct Investment, or FDI, is one of the forms of investment. It is when a company or investor from one country puts money into a business in another country. The main aim of the FDI is to help in gaining control, ownership, or long-term influence. It is not just buying shares. It involves building facilities, opening branches, or acquiring an existing company.

FDI helps firms enter new markets and create stable global partnerships. The key features of the FDI are as follows:

Investor gains ownership or controlling interest
Long-term commitment to foreign operations
Involves physical assets such as factories, offices, or acquisitions
Allows direct decision-making power in the business
Helps companies strengthen their global expansion plans

How FDI Works

FDI works when a company invests in another country and becomes directly involved in running the business. This can be done by buying an existing firm, opening a new unit, or forming a joint venture. The goal is long-term control, ownership, and steady expansion in the foreign market.

Now, to understand FDI better, it is important to know the works, which are as follows:

Step 1: Understand the Target Market

The company studies the country’s demand first. This is followed by knowing the rules, labour costs, taxes, and competition. This helps to see if expansion is practical.

Step 2: Select the Entry Route

If the results are positive, the company chooses to enter the market. The company now needs to decide on how to enter the market. This can be through partnership, merger, or even acquisition. The choice is based on the model that best matches. Opening a new unit altogether is also a choice.

Step 3: Allocate the Investment

Based on the choice of the route, the company commits capital. This is mainly to purchase assets, set up facilities, or buy a stake in the local business. This investment is basically to purchase the stake which offers you share access. This is what we call FDI.

Step 4: Obtain Ownership and Control

The investor secures voting rights, management control, or majority ownership to influence business decisions. This is one of the most important aspects that you must consider. It also involved certain rules and regulations to be implemented to ensure the rights of both parties are managed.

Step 5: Begin Operations

The new or acquired unit starts functioning with staff, production, services, and local compliance in place. As the operations begin, the company gain access to the local markets. This is mainly achieved by selling their products and services.

Step 6: Monitor and Expand

The investor manages performance. They support in making strategic decisions for future growth opportunities in the host country. Based on the changes in the local market, demand, and other aspects, changes in the plan are made. This ensures there is positive growth.

Factors That Affect FDI

When a company invests in another country, several conditions shape how attractive and viable that investment is. These factors influence both the amount of FDI and business performance. These include:

Large and expanding markets that support growth.
Political and economic factors that impact the reach and implementation.
Supportive tax rules for better profitability.
Sector incentives lower the costs of production and operation.
Access to skilled and affordable labour.
Strong infrastructure, like transport, power, and digital systems.
Clear regulations and quick approvals to speed the work.
Stable currency and open trade policies to reduce risk.

Types of FDI

Foreign direct investment comes in several forms. But each type supports a different expansion goal. Some help a company enter a new market with the same business, while others strengthen the supply chain or open doors to new industries. Understanding these types of FDI in India helps businesses choose the right path for global growth.

1. Horizontal FDI

Horizontal FDI happens when a company invests in the same line of business abroad that it already operates at home. A cosmetics brand opening retail stores in another country is a good example. This type offers familiarity, as the company works within its existing expertise, product range, and business model. It is one of the most common FDI types because the risk is lower than entering a new industry.

USP: Best for expanding a proven business model into new markets with minimal structural change.

2. Vertical FDI

Vertical FDI involves investing in a foreign business that supports a different stage of the company’s supply chain. Backward vertical FDI focuses on raw materials or component suppliers, while forward vertical FDI focuses on distribution and sales units. This type helps reduce production costs and strengthens supply chain efficiency. It is widely seen among types of foreign direct investment in manufacturing and retail.

USP: Ideal for gaining supply chain control, improving efficiency, and reducing external dependency.

3. Conglomerate FDI

Conglomerate FDI occurs when a company invests in a completely different industry abroad. A healthcare firm investing in a clothing business is one example. This type is often considered riskier. This is mainly because the company is entering an unfamiliar market. But it also helps diversify revenue streams. Also, it reduces sector-specific risks.

USP: Useful for risk diversification and expanding into high-potential but unrelated industries.

4. Platform FDI

Platform FDI is one where a company invest to use the platform of another company. This means a company invests in one foreign country but uses it to export goods or services to other countries. For instance, a firm setting up a plant in India. Now, say it uses it to export products to Southeast Asia. This is often driven by trade agreements, cost advantages, or strategic access to nearby markets.

USP: Best for using a country as a strategic export hub due to cost or trade benefits.

5. Greenfield FDI

Greenfield FDI happens when a company builds new facilities. This is done from scratch in a foreign country. This includes setting up new factories, offices, or distribution centres. It gives complete control over operations, culture, and processes. This is why it requires high investment and time. But at the same time, it offers long-term stability and strong brand presence.

USP: Ideal for full control, job creation, and building operations tailored to the company’s standards.

6. Brownfield FDI

Brownfield FDI occurs when a company acquires or merges with an existing business abroad. This type gives the investor access to ready infrastructure, trained staff, and an existing market presence. It allows quick entry and is often chosen when time or regulatory approvals are critical.

USP: Best for fast market entry with lower setup time and easier access to established operations.

Conclusion

Foreign direct investment supports global business growth. But this is only possible when you select the right types of FDI in India. At the same time, a focus on the amount of investment is also important.

Using the right approach will ensure that the company grows exponentially and across borders. This is one of the finest ways that can help a company become a global brand. Hence, focus on using FDI to build plans, supply chain, operations, and manage talent.

When used well, FDI helps companies grow faster and helps countries gain jobs, capital, and better technology. For clearer and useful finance guides, you can always explore more with Pocketful.

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Frequently Asked Questions (FAQs)

What is the main goal of FDI?
The main goal is to help a company enter a foreign market. This is with ownership and long-term control over its operations. This supports steady global expansion.
How is FDI different from portfolio investment?
FDI gives the investor direct control of business activities. But the portfolio investment only involves buying financial assets without management rights.
Which type of FDI is used most often?
Horizontal FDI is the most common. It is because companies expand with the same business model. This is a model that lowers risk and makes operations easier to manage.
Why do countries try to attract FDI?
Countries benefit from new capital, jobs, improved technology, and better infrastructure, which together support economic growth.
Is FDI risky for businesses?
It carries some risk due to new markets, rules, and competition. But careful research, planning, and strong local partnerships help reduce these challenges.

December 22, 2025

How to Read Stock Charts: A Beginner’s Guide to Chart Analysis

To be successful in stock trading today, news or tips aren’t enough you need to understand how the market actually signals. This is where reading stock charts comes in. Proper chart reading helps you understand why prices are changing, which direction the trend is heading, and when strength or weakness is forming in the market. In this blog, we’ll learn, in very simple terms, how to read stock charts, that is, how to make better decisions by looking at them. This guide is a clear, understandable starting point for both new and experienced traders.

What Are Stock Charts?

Stock charts visually depict changes in a stock’s price. They show you how a company’s price has fluctuated over time, including where buying and selling levels have increased. The advantage of charts is that they allow you to understand market behavior without any guesswork trends, volatility, momentum, and key levels are all clearly visible at a glance.

At Pocketful, we know how accurate chart reading helps make better decisions in the stock market. That’s why we offer advanced and clean chart options, so you can easily understand price movements, pivot levels, and indicators. When you search for a stock on Pocketful, you’ll instantly see a well-designed and interactive chart, making analysis faster and more accurate.

Basic Components of a Stock Chart

To truly understand any stock chart, it’s crucial to recognize its fundamental components. These components indicate how prices are changing, market participation, and trend direction.

1. Price Axis (Vertical Axis)

This axis, visible on the right side of the chart, shows the stock’s price. Every small or large change in price is reflected on it. This allows you to quickly understand the range in which the stock is trending and the levels at which it is reacting most frequently.

2. Time Axis (Horizontal Axis)

This axis, visible below the chart, shows how the price behaved at a given time or date. It clearly presents the entire timeline of price movement—from short-term to long-term.

3. Timeframes

The timeframe determines how long each candle represents data. Choosing the right timeframe is a crucial first step in chart reading.

Stock Chart Timeframes Explained :

Timeframe	What does it mean?
1 Minute Chart	Each candle shows just 1 minute of price and volume very quick and subtle to capture moves.
5 Minute Chart	Every 5 minutes price movement is shown in one candle intraday direction becomes a little clearer.
15 Minute Chart	A 15-minute consolidated price view helps to understand smaller trends and stable intraday patterns.
1 Hour Chart	Hourly price action in one candle to see short-term trends and large intraday swings.
1 Day Chart (Daily)	A candle represents the entire day’s trading activity, the basis for understanding the medium-term trend.
1 Week Chart	A candle summarizes the high-low-open-close price movement of the entire week showing the broader trend.
1 Month Chart	The entire month’s price movement in one candle to understand long-term direction, cycles and major trend shifts.

4. Volume Bars

The vertical bars that appear just below the price indicate volume that is, how many shares were traded at that time.

High volume = strong interest (buyers or sellers)
Low volume = weak activity

Volume is the most reliable indicator for validating the strength of any breakout, breakdown, or trend reversal.

5. Candlesticks

When you look at candles, each candle represents the beginning (open), middle (high/low), and end (close) of a specific period.

Green candle = Price closed higher during that period.
Red candle = Price closed lower.
Shadow/Wicks = Levels at which the market experienced resistance or support during that period.

The shape of the candle and its wicks indicate which direction the market experienced pressure during that period, buyers or sellers.

Common Chart Types & When to Use Them

Line Chart : A line chart is the simplest visual form, simply connecting closing prices to form a clean line. This chart is useful when you want to cut through the noise and understand the clear long-term direction of a stock. It’s considered the easiest starting chart for beginners because it doesn’t contain unnecessary details.
Bar Chart (OHLC Chart) : A bar chart shows a slightly more detailed picture of the price each bar contains four pieces of information: open, high, low, and close. This chart allows you to identify the ranges within which the price moved during a session and how buyer-seller pressure developed. It’s suitable for those who prefer to see more structured data than candles.
Candlestick Chart : The candlestick chart is the most popular form today because it displays price action in a very clear and easy-to-read way.Each candle shows where the price opened, closed, and what levels of rejection or support were present during the period. The color and shape of the candles provide immediate clues to market psychology such as buying strength or selling pressure making trading decisions faster and more accurate.
Heikin-Ashi Chart : This chart appears smoother than traditional candles because it uses average prices. The advantage of Heikin-Ashi is that it filters out small price fluctuations, allowing for a clearer trend. It is often used by swing traders and trend-followers.

Understanding Candlestick Charts

Candlestick charts provide the clearest view of a stock’s price movement. Each candle reveals how the market reacted during that period where buying was observed, where selling increased, and at what level the price was rejected. Accurately reading candles is the foundation of chart analysis.

1. Candlestick Components

The body of the candle shows where the price opened and closed. The size of the body gives the first indication of market strength.

Body Type	What does it mean	Signal
Large Body	Strong directional move in price	Clear dominance of buyers or sellers
Small Body	Fewer changes, indecision	Trend weakens or pauses

2. Upper Shadow (Upper Wick)

The upper wick indicates where the price moved during the session and from there sellers showed resistance.

Upper Wick Length	Interpretation
Long Upper Wick	Sharp selling at higher levels, rejection from above
Short Upper Wick	Buyers have better grip, less resistance

3. Lower Shadow (Lower Wick)

Lower wick shows how far the price went down and where buyers supported it.

Lower Wick Length	Interpretation
Long Lower Wick	Strong buying interest, price rejection from below
Short Lower Wick	Limited buying, weak support

4. Candle Colours (Market Sentiment)

Candle Colour	Meaning
Green Candle	Price closed above open Buyers active
Red Candle	Price closed below open Sellers active

Timeframes & Multi-Timeframe Analysis

The most important thing to remember when reading stock charts is that the same stock appears different on different timeframes. This is why choosing the right timeframe and performing multi-timeframe analysis is a crucial skill for every trader. This method helps you understand both the larger trend and smaller setups simultaneously.

Why Do Different Timeframes Show Different Pictures ?

A 1-day candle shows the entire day’s price activity, while 5-minute or 1-hour charts break that activity into smaller chunks.

Smaller timeframes : More details, more noise
Larger timeframes : Clear and reliable trends

Example : A stock may appear to be in an uptrend on a daily chart, but in a correction on a 5-minute chart. Both are valid, the lens is different.

How Timeframes Affect Trading Style ?

Every trading style has a core timeframe, and analysis is done accordingly.

Trading Style	Primary Timeframe	Purpose
Intraday Trading	1m, 5m, 15m	Catching small price moves
Swing Trading	1D	Catching the trend over a few days/weeks
Positional Trading	1W, 1M	Understanding the broader long-term trend

Why Does Higher Timeframe Come First ?

The rule of always looking at higher timeframes before trading is important because:

It shows the true trend (the direction the market is moving).
Major support and resistance are found there.
False signals are reduced on shorter timeframes.

Trend Analysis: The Backbone of Chart Reading

Understanding trends is the most reliable part of any chart analysis. Trends indicate the direction the market is moving and identifying a correct trend significantly reduces the likelihood of wrong trades. Below are three key ways to read trends, in a simple, clear, and practical way.

Higher Highs & Higher Lows (HH/HL Pattern)

This pattern is a fundamental hallmark of an uptrend.

Higher High (HH) = Each time the stock moves above the previous high.
Higher Low (HL) = Even when declining, it stays above the previous low.

This indicates that buyers are continuing to show strength and the market intends to remain in an upward trend. This signal helps identify a trend even before indicators confirm it.

Trendlines

A trendline visually shows the market direction, but it is very important to draw it correctly.

Key rules for constructing a trendline :

Link it to price zones, not exact points.
Link lows in an uptrend and highs in a downtrend.
A trendline is only as reliable as the number of times the price has respected it.

When is a trendline break important ?

When volume increases along with a break meaningful shift
When the break occurs near a major support/resistance zone trend reversal possible
A break without volume and without context mostly noise

Channels

A channel is a kind of parallel trendline structure in which the price repeatedly touches both the upper and lower boundaries.

Why are channels useful ?

They indicate the range within which a trend is moving.
They help identify reversal zones quickly.
Overbought (upper channel) and oversold (lower channel) levels are clearly visible.
Volatility cycles become easier to understand.

Support & Resistance: Price Movement

Support and resistance are levels where market direction can often change. Understanding them is essential for any trader or investor because prices often react around these levels, sometimes stalling, sometimes reversing, and sometimes breaking through sharply and moving forward.

1. What is Support?

Support is the level where buyers become active in response to a falling price and demand increases.

Meaning:

The price often stalls or bounces upon reaching this zone.
Buyers perceive the stock as becoming “cheap” here.
Sellers’ strength appears to be low near this level.

Key signs of Support:

The price has repeatedly bounced above this level.
The lower wick repeatedly shows rejection from this zone.
The bounce becomes stronger as volume increases.

2. What is Resistance?

Resistance is the level where sellers become active in response to a rising price and supply increases.

Price often stalls or turns down at this level.

Key signs of resistance:

Price has repeatedly retraced below this zone.
Upper wicks indicate that buyers are unable to sustain the uptrend.
Volume spikes increase the likelihood of a breakdown.

Volume Analysis For Chart Reading

Volume shows how much buying or selling activity occurred in a stock. Price alone never tells the whole story but looking at volume along with price can help you understand the driving force behind a move. This is why volume is considered the most important and reliable part of chart reading.

What is Volume?

Volume indicates how many shares were bought and sold over a given period.

High Volume = high participation, strong interest
Low Volume = low interest, weak movement

If the price moves up and down without volume, that movement is considered less reliable.

How to Read Volume Bars ?

Volume bars appear below the chart and each bar represents the volume of one candle.

Volume Reading Basics :

Price up + High Volume	Strong buyer participation
Price down + High Volume	Dominance of sellers
Sudden Volume Spike	Possible institutional action
Low Volume Move	Weak trend, risk of reversal

Breakouts & Volume Confirmation

A breakout is considered reliable only when accompanied by strong volume.

A high-volume breakout : increases the likelihood of price persistence.
A low-volume breakout : increases the likelihood of a fake breakout.

A common mistake is to assume a breakout based solely on price but looking at volume reveals the true picture.

Indicators in Chart Reading

MACD (Moving Average Convergence Divergence)

The MACD shows the difference between two EMAs (12-EMA and 26-EMA). It indicates both price momentum and trend shifts.

Main parts of MACD

Component	Meaning
MACD Line	Difference of two EMAs
Signal Line	9-period EMA of the MACD
Histogram	The gap between the MACD and the Signal line

What MACD Shows

Trend direction and strength
Buy–sell momentum shift
Entry/exit signals from crossovers
MACD > Signal Line = bullish momentum
MACD < Signal Line = bearish momentum
Histogram rising trend strengthening
Histogram falling trend weakening

Limitations

Trends take time to change (lagging indicator)
Sideways markets often give false signals

Bollinger Bands

This indicator creates three lines based on volatility:

Upper band
Middle line (20-period SMA)
Lower band
It indicates the range within which the price is moving and the degree of volatility.
When the bands narrow price squeeze a large move is likely
When the price repeatedly touches the upper band a strong uptrend
When the price repeatedly visits the lower band weak momentum
Band expansion often signals the start of a new trend.
Mean reversion (price returning to the middle line) is also very common.

Limitations

In strong trending markets, the price often sustains outside the bands, which can cause confusion.

Common Mistakes & How to Avoid Them

Drawing a Trendline Incorrectly : Many traders draw a trendline only after the price has already changed direction, which can lead to a loss of understanding of the true direction of the trend. Trendlines should always be drawn based on live prices and key swing points, and it’s better to consider them as zones rather than a precise point.
Overreliance on Indicators : Indicators are intended solely to help understand price action, but people often use them as the basis for final decisions. The correct approach is to read indicators in conjunction with price, volume, and trend, making signals more reliable.
Ignoring Volume : Volume reveals the true strength of any price move, but beginners often overlook it. If the price is crossing a key level without increasing volume, the move is considered unreliable. Therefore, volume should always be given equal importance as price in chart analysis.
Relying solely on chart patterns : Many people immediately take trades after seeing patterns like hammering or engulfing, but patterns are only effective when supported by the trend, levels, and volume. It’s important to understand patterns not in isolation, but in conjunction with the overall market structure.
Overcrowding the Chart : Adding too many indicators, lines, or tools clutters the chart and makes it difficult to read price action. A clean and minimal chart provides clearer signals and makes decision-making easier.
Not Keeping a Trade Journal : Without a record, you can’t understand what’s going well and what’s not in your trading. A simple journal helps you identify your mistakes, patterns, and opportunities for improvement, increasing your accuracy over time.

Conclusion

Reading charts correctly is the foundation of understanding the markets. When trends, volume, candles, and key levels become clearly visible, every personal decision becomes more logical and confident. Charts don’t predict the future, but they do show you where prices are consolidating and where risks may be present. Regular practice and calm analysis continually improve the quality of your decisions and this is the greatest strength of any successful trader.

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Frequently Asked Questions (FAQs)

How can beginners start reading stock charts?
Start by understanding trends, candles, and volume; a little daily practice is enough.
Which chart type is ideal for new traders?
Candlestick charts, as they show the clearest price action.
Are indicators alone enough for trading decisions?
No, always make decisions based on price and volume.
Which timeframe works best for analysis?
Daily for direction; 5–15 minute charts for entry.
Is chart reading useful for long-term investors?
Yes, it helps better understand entry points and market sentiment.

December 22, 2025

Dolly Khanna Portfolio 2026

Dolly Khanna has a knack for discovering small and mid-cap companies, which is why her portfolio updates are always eagerly awaited. Every quarter, her holdings give investors a peek into where she sees long-term potential and which themes she believes are ready to grow.

In 2025, her portfolio once again highlights her signature style, finding strong, simple, well-run businesses and staying invested while they quietly compound. Whether you are new to the market or someone who follows top investors for inspiration, looking at her latest moves can give you tons of useful insights.

In this blog, we will walk through her holdings, the sectors she is invested in, and the investment ideas you can take away from her approach.

Dolly Khanna – About & Background

Dolly Khanna is known for discovering small and mid-sized companies long before they turn into big stories. Her portfolio is actually managed by her husband, Rajiv Khanna, who has a deep passion for researching businesses.

Their journey goes way back to the 1990s, when the couple sold their dairy brand, Kwality Milk Foods, to Hindustan Unilever. Instead of starting another business, they decided to step into the world of investing, and that decision changed everything.

What makes them different is that they stay away from hype and focus on companies with stable fundamentals, strong growth potential, and strong management. They prefer entering early, when valuations are still reasonable, and the crowd hasn’t noticed the opportunity yet.

Her portfolio has become a reference point for anyone interested in discovering promising small- and mid-cap ideas.

Snapshot of Dolly Khanna Portfolio

Dolly Khanna currently holds 10 companies with a net worth of INR 333 crore. Her holdings and sector-wise breakup are as follows;

Stock Name	Holding (%)	Value (Cr)	3M Returns (%)
Southern Petro	2.98%	46.8	-22.15%
Prakash Industries Ltd.	2.94%	73.1	-11.19%
Coffee Day Enterprises Ltd.	2.19%	16.7	-27.84%
GHCL Ltd.	1.21%	66.7	0.042
KCP Sugar	1.80%	5.6	-15.08%
Som Distilleries	2.43%	58.8	-15.24%
Prakash Pipes Ltd.	1.69%	10.0	-20.81%
20 Microns	1.4%	21.86	0.3724
National Oxygen Ltd.	1.22%	0.69	-8.75%
Savera Industries Ltd.	1.14%	2.04	-8.20%

Sector-Wise Breakup of Holdings

Sector	Allocation (%)
Metals – Ferrous	26.02%
Chemicals	21.31%
Beverages – Alcoholic	18.87%
Fertilisers	15.31%
Financial Services	6.56%
Other	11.93%

Best Picks

Stock	3M Return (%)	Holdings (%)
Emkay Global	0.3724	2.73%
GHCL Ltd.	0.042	1.21%

Investment Strategy

She is especially drawn to small and mid-cap companies, the kind that are not in the spotlight yet but have the potential to become tomorrow’s big stories.

Below is how she approaches investing;

She studies businesses – Instead of following market buzz, Dolly looks closely at each company on its own merit. She tries to understand what they make, how strong their finances are, and whether the management team is trustworthy.
She enters before the crowd notices – One of her biggest strengths is timing. She prefers buying a stock when it is not yet on everyone’s radar. This gives her room to capture the full upside as the company grows.
She loves niche and underexplored sectors – Her portfolio often includes companies from sectors like chemicals, consumer goods, textiles, and manufacturing, areas that may not always grab headlines but offer strong long-term potential.
Not afraid to be a contrarian – Some of her best picks have come from sectors that the market was not very excited about at the time. If she believes the business has a future, she will hold it even when others hesitate.

Conclusion

To sum it up, Dolly Khanna is known for her sharp investment understanding, and is very specific in identifying multibagger stocks, especially in the mid-cap and small-cap segments. Her portfolio is distinguished by fundamentally strong companies with decent growth potential.

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10	Top 10 Investors in the World

Frequently Asked Questions (FAQs)

Who manages Dolly Khanna’s portfolio?
Her husband, Rajiv Khanna, actively manages her portfolio.
How often is her portfolio updated?
SEBI filings update her portfolio every quarter.
What is her investing style?
Yes, she generally follows a bottom-up research approach and invests before a stock becomes famous.
Can retail investors copy her portfolio?
You can track her moves, but copying blindly is not suggested since you might have different financial goals and risk appetite. Consult your financial expert before investing.
Which sectors does she usually invest in?
She invests in chemicals, manufacturing, consumer goods, textiles, and the undervalued industrial sector.

December 21, 2025

What is Free Float Market Capitalisation?

Free float market capitalisation plays a major role in how market indices are built and how stocks are ranked. When you check index weights or compare companies, you will often see free float values instead of the full market value. This method provides a more realistic picture of a company’s tradable shares, improves index accuracy, and ensures that only actively available shares influence market movements.

In this guide, we break down what is free float market cap, how it is calculated, and why investors track free float market capitalization while studying stocks.

What Is Free Float Market Capitalisation?

Free float market capitalisation represents the market value of only those shares that are freely available for public trading. It removes promoter stakes, government holdings, employee lock-ins, and any long-term strategic investments. These are the ones that are not likely to actively trade.

When investors check the free float market cap, they get a clearer sense of how much of the company’s equity is actually influencing daily price movement. This is why many major indices prefer the free float method over the full market value.

The idea of free float simply helps you understand how much of the stock is open to regular buyers and sellers instead of being tied up with large insiders.

Key Features of Free Float Market Capitalisation

Before you look at index weights or compare companies, it helps to know what makes free float market capitalisation different from the full market value. These features show why analysts and index providers rely on it to understand real liquidity and trading activity.

Only includes shares available for public trading.
Excludes promoter, government, and strategic holdings.
Gives a clearer picture of active market participation.
Helps assess how easily a stock can be traded.
Used by major indices to assign weights based on actual liquidity.
Reduces the impact of large inactive shareholders on stock ranking.

Example of Free Float Market Capitalisation

Let’s look at a practical example using generic company names so the focus stays on understanding the concept.

Company A

Total outstanding shares: 1,00,000
Share price: ₹40
Publicly tradable shares (free float): 35,000
Remaining 65,000 shares are held by promoters, institutions, and long-term investors.

Market Capitalisation

1,00,000 × ₹40 = ₹40,00,000

Free Float Market Capitalisation

35,000 × ₹40 = ₹14,00,000

Why This Matters

This example shows that even when a company appears large based on total market value, the actual free float market capitalisation or free float market capitalization can be far lower. Free float tells you how much of the company’s equity truly participates in daily trading. It reflects real liquidity, not just theoretical size.

What Is Free Float Factor?

The free float factor is a percentage that shows how much of a company’s total shares are actually available for public trading. Instead of using the full share count, the free float factor helps index providers adjust a company’s weight based on only the tradable portion. This factor removes promoter holdings, government stakes, employee lock-ins, and other restricted shares.

In simple terms, the free float factor tells you what part of the company truly reflects market activity. A higher factor means more shares are open to regular buyers and sellers, while a lower factor means most shares are held by insiders.

Advantages of Using Free Float Market Capitalisation

Using free float market capitalisation gives a more accurate picture of how actively a stock participates in the market. It filters out shares that never trade and focuses only on the portion that real investors buy and sell. This makes it useful for index construction, stock comparison, and liquidity analysis. Here are the key advantages.

1. Shows Real Trading Value

Free float market capitalisation highlights only the shares that trade actively in the market. This helps you understand the company’s true market presence instead of relying on the full share count.

2. Reduces Promoter Influence

Promoters and government holdings do not trade often. Removing them gives a clearer view of the company’s active size and prevents inactive stakes from creating a false impression of strength.

3. Improves Liquidity Analysis

By focusing on freely tradable shares, it becomes easier to judge how liquid a stock is. Investors can quickly understand how easily they can enter or exit positions.

4. Enables Fair Stock Comparison

Free float values allow companies to be compared on practical terms. It avoids situations where a business looks large on paper but has very little actual market participation.

5. Creates More Reliable Index Weights

Most major indices use free float to decide stock weights. This keeps the index balanced and ensures that stocks with high promoter holdings do not get oversized representation.

6. Prevents Distorted Market Rankings

Companies with large locked-in stakes often appear bigger than they are. Free float market capitalisation avoids this distortion and gives a genuine picture of a company’s market position.

How Market Volatility Connects With Free Float Market Capitalisation

When you study how stocks behave during sharp market movements, the size of the free float becomes very important. Free float tells you how many shares actually trade in the market. When this tradable portion is small, prices react faster and move more sharply. When the free float is large, the stock absorbs buying and selling better. This is why volatility and free float are closely linked.

1. Smaller Free Float Creates Higher Volatility

When a company has a low free float, fewer shares are available for trading. Even small buy or sell orders can push the price up or down quickly. This makes the stock more volatile.

2. Larger Free Float Helps Stabilise Prices

A stock with a high free float has many active shares in the market. This absorbs buying and selling pressure better. As a result, price swings are usually smoother and less extreme.

3. Volatility Affects Free Float Market Cap Directly

Free float market cap depends only on tradable shares. When prices fluctuate, this value changes faster because it reflects the behaviour of public traders, not promoter-held shares.

4. Low Free Float Amplifies Market Reactions

If news or sentiment hits the market, stocks with low free float react sharply. With a limited supply of tradable shares, the impact of fear or excitement becomes stronger.

5. High Free Float Reduces Manipulation Risk

Stocks with very low free float can be moved easily by a few large trades. A higher free float reduces this risk and keeps volatility closer to normal market conditions.

Difference Between Free Float and Full Float

Free float and full float are two ways of measuring a company’s value, and the difference lies in the type of shares they count. Free float focuses only on the shares that trade actively in the market, while full float includes every share the company has issued. Investors use free float to understand real liquidity, whereas full float helps in seeing the company’s total size. The table below shows the difference clearly.

Point of Comparison	Free Float Market Capitalisation	Full Float Market Capitalisation
Shares Counted	Only shares available for public trading	All shares issued by the company
Excludes	Promoter, government, and locked-in holdings	Nothing is excluded
Market Behaviour	Shows real liquidity and trading activity	Shows total theoretical company value
Sensitivity to Volatility	More sensitive because it reflects active traders	Less sensitive due to inactive holdings
Use in Indices	Commonly used for realistic index weights	Rarely used for index calculation
Best Used For	Liquidity study, volatility analysis, stock comparison	Understanding overall company size

Conclusion

Free float market capitalisation gives you a clearer, more practical view of how a stock behaves in the real market. It removes the noise created by promoter and strategic holdings and focuses only on the shares that actually trade.

This makes it useful when you study liquidity, volatility, index weights, or compare two companies on real activity rather than theoretical size. Understanding free float helps you read market behaviour with better accuracy and make more informed decisions.

For more such simple and useful market insights, you can always explore Pocketful.

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Frequently Asked Questions (FAQs)

What does free float include?
It includes only the shares that are available for public trading and excludes promoter, government, and locked-in holdings.
Is free float always lower than total market cap?
Yes. Free float market cap is always a part of the total market value, never equal to or higher than it.
Does a low free float increase volatility?
A low free float often leads to sharper price swings because fewer shares are available to absorb buy and sell pressure.
Why do indices prefer free float market cap?
It reflects the value of tradable shares, which makes index weights more realistic and aligned with actual market behaviour.
Can free float change over time?
Yes. If promoters reduce holdings or locked shares open for trading, the free float increases and the factor changes.

December 21, 2025

What is Gold Trading?

Gold has always been considered one of the most-trusted assets across the world. There are various options through which one can trade in gold and earn short-term profit, offering flexibility, liquidity, and diverse strategies for different types of investors, while also acting as a reliable hedge against inflation, market uncertainty, and global economic volatility.

In today’s blog post, we will give you an overview of Gold Trading, along with the methods through which one can trade in Gold.

What is Gold Trading?

Gold trading involves buying and selling Gold in various forms, such as Gold ETFs and physical gold, to earn a profit from the price movement of gold. Trading in gold has been popular among investors for many centuries, as gold is considered a safe haven. An investor tries to identify the trend of the gold price. If the price moves up, they can go long or buy gold, and if they think the price of gold will fall, they can sell the gold to earn a profit.

Key Features of Gold Trading

The key features of Gold Trading are as follows:

Gold trading offers liquidity as it can be bought and sold easily.
In case of economic uncertainty, gold tends to be investors’ favourite because it performs well during such conditions.
One can trade in gold using various options such as ETFs, physical gold, etc.
There are market regulators who offer

Steps to do Gold Trading

The steps to start gold trading are as follows:

Trading and Demat Account: The first step to start trading in gold is to open a demat and trading account. Pocketful offers you to open a lifetime free demat and trading account, with zero brokerage on delivery.
Select the Gold Instrument: The next step is to identify the gold instrument in which you wish to trade. This selection is based on your risk tolerance, return expectation, etc.
Analyse the Trend: Based on the historical data and technical analysis, you can identify the trend of gold prices.
Adding Funds: Once you identify the trend, you are required to add funds to your trading account. You can do so using various online methods such as UPI, RTGS, NEFT, etc.
Executing Order: As soon as the funds start reflecting in your demat account, you can place a buy or sell order based on the trend you have identified.
Review: Regular monitoring of your position in gold is required. As there are various events which can significantly impact the movement in the gold price.

Types of Gold Trading

The various types of Gold Trading are as follows:

Gold ETF: Gold ETFs are traded on the stock exchange. One is required to have a demat and trading account to trade in Gold ETFs. These funds are managed by the asset management companies and track the price of gold, similar to any other stock.You can easily open an account with Pocketful to start buying Gold ETFs and begin your investment journey seamlessly.
Gold Future: Gold Futures are the exchange-traded contracts traded on the multi-commodity exchange or commonly known as MCX. In this, an investor buys and sells gold at a fixed price at a future date.
Gold Options: Trading through gold options gives an investor the right but not the obligation to buy or sell gold at a set price before expiry. These contracts are also traded in MCX.
Stocks: One can also invest in stocks of mining companies. The performance of these stocks depends on the operational efficiency of the company.
Physical Gold: Most of the Indian investors purchase physical gold from the local jewellery shops and sell it when the market prices are high.

How to Calculate Profit in Gold Trading

The formula to calculate the profit in Gold Trading is mentioned below:

Profit in Gold Trading = (Selling Price – Buying Price) * Quantity

Let’s understand this with an example:

Suppose an investor purchases 10 grams of gold for INR 10,000 per gram.

And after 15 days, he sells the same quantity at 10500 INR per gram.

So in this case, the profit will be calculated as follows:

Profit in Gold Trading = (10500 – 10000) * 10

Profit = 5000

Therefore, the investor earns a net profit of INR 5000 from this trade after deducting all the relevant charges.

Read Also: Top 10 Reasons to Invest in Gold

Advantages of Gold Trading

The key advantages of gold trading are as follows:

Diversification: One can easily diversify their investment portfolio by investing in Gold, as gold has a low correlation with the equity and debt asset classes.
Liquidity: Trading in gold provides liquidity; one can easily enter and exit from their trades anytime.
Hassle-Free: While trading in gold, no one needs to worry about the storage and purity concerns.

Disadvantages of Gold Trading

The major disadvantages of gold trading are as follows:

Volatility: There are various factors due to which the price of gold fluctuates, such as inflation, demand for gold, interest rates, etc. Hence, one should keep a close eye on such factors.
Risk: Trading in gold futures contracts involves margin or leverage due to this a small price change can lead to significant losses.
Advanced Research: Trading in gold involves advanced research tools and knowledge; therefore, investors having expertise can trade in gold.

Conclusion

On a concluding note, Gold Trading is among the most commonly used means of earning profit and creating wealth with limited risk. There are various types of contracts which allow an investor to trade in Gold, such as ETFs, gold options and futures, etc. However, gold trading requires a detailed understanding of margins, contract size, etc. Therefore, it is advisable to consult your investment advisor before making any investment decision.

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Frequently Asked Questions (FAQs)

What is the best method to trade in Gold?
The best method to trade in Gold is futures and options contracts, as they offer high liquidity and are volatile in nature; therefore, one can earn profit from small movements in the gold price.
What is the meaning of Gold Trading?
Gold trading refers to the frequent buying and selling of different forms of Gold, such as spot, futures, options, etc.
What does margin refer to in Gold Trading?
Margin refers to the minimum amount which a trader is required to deposit with a broker to execute any buy or sell position in futures, spot and options contracts.
What are the factors which can affect the price of Gold?
The factors which can significantly impact the price of Gold include interest rate, inflation rate, economic data, etc.
Is it mandatory to have a demat account for trading in Gold?
Yes, it is mandatory to have a demat and trading account with a broker if you want to trade in Gold, Start easily with Pocketful today.

December 20, 2025

Top 10 Highest Revenue Companies in India 2026

India’s economy is growing rapidly, and along this journey, some Indian companies have grown so large that their annual revenue has reached not just crores, but lakhs of crores of rupees. These companies form the basis of the country’s largest industries, most employment, and strongest supply chains. In this blog, we’ll explore India’s highest revenue-earning companies today, how they grew so rapidly, and why they are considered the country’s “biggest companies in India.”

What is Company Revenue?

A company’s revenue is the total amount it earns from the sale of its products or services. Simply put, it can be called gross sales or gross income. This figure indicates the size of a company’s business and how much it sells in the market. This is often used to determine the biggest company in India or the highest turnover company in India.

Top Indian Companies by Highest Revenue

SO.N	Company	Revenue (in INR crore) Sep ‘25	Market Capitalisation (in INR crore)	Current Market Price (INR crore)	52-Week High
1	Reliance Industries Ltd	2,88,030	21,18,034	1,565	1,581
2	Life Insurance Corporation of India	2,42,569	5,65,467	894	1,008
3	Indian Oil Corporation Ltd	2,07,091	2,31,588	164	174
4	State Bank of India	1,75,898	9,03,677	979	999
5	Oil & Natural Gas Corp. Ltd	1,61,019	3,06,028	244	274
6	Bharat Petroleum Corporation Ltd	1,22,557	1,57,726	364	382
7	HDFC Bank Ltd	1,18,561	15,49,666	1,007	1,020
8	Hindustan Petroleum Corporation Ltd	1,10,919	97,347	458	495
9	Tata Motors Passenger Vehicles Ltd	73,810	1,32,859	361	497
10	Larsen & Toubro Ltd	69,368	5,66,739	4,120	4,135

(Data as of 28 Nov 2025)

A brief overview of the Indian Companies by Highest Revenue Stocks in India is given below:

1. Reliance Industries Ltd

Reliance began around 1960 when Dhirubhai Ambani started a small textile business. While the beginnings were simple, the company gradually expanded its scope. First, textiles, then petrochemicals, then refining… and today, it encompasses everything from retail, digital services, and networks. Reliance’s hallmark has always been its ability to quickly grasp opportunities and transform them into large-scale solutions. This is why the company is now so intertwined with people’s everyday needs; its influence is evident in every household.

2. Life Insurance Corporation of India (LIC)

LIC was founded in 1956 when several small and large insurance companies operating in India were merged to form a national entity. The government’s goal at that time was to ensure that people had access to the essential service of life insurance with confidence and a clean process. LIC’s mission was straightforward from the beginning: to provide people with plans that offered both long-term protection and savings. Gradually, the organization expanded across the country, and today, LIC is recognized in some form or another in almost every Indian household. Its recognition is also strengthened by its stable and reliable approach, rather than being aggressive like private companies.

3. Indian Oil Corporation Ltd (IOCL)

Indian Oil was established in the 1960s and is directly connected to people’s everyday needs. From petrol pumps to household kitchens, the name Indian Oil is present in everyday life in one way or another. Initially, the company focused solely on the supply and marketing of petroleum products, but gradually expanded into refining, pipeline networks, and various fuel-related operations. Indian Oil’s distinctive feature is its ability to reach every corner of the country; its pumps and distribution network are available even in small towns. This has led it to be considered the organization that keeps India’s energy system running smoothly, without any fuss.

4. State Bank of India (SBI)

SBI, as it exists today, began in 1955. Prior to that, it operated as separate, older banks, but was later consolidated under a single name, becoming the nation’s public sector bank. SBI’s mission is straightforward connecting people to banking, whether they live in a large city or a small village. Most families have some kind of connection with the bank, which has given it a distinct identity. People see SBI as a bank that is trustworthy and available everywhere, whether it’s an ATM or a simple account.

5. Oil & Natural Gas Corporation Ltd (ONGC)

ONGC was established in the 1950s when the need for organized oil and gas exploration was felt in the country. At that time, India was increasingly dependent on external sources for energy, so the government wanted to create an organization capable of exploring underground resources. ONGC’s work began with this: locating oil and natural gas reserves, exploring them, and then extracting and making them usable. Gradually, this work expanded, and ONGC became a major name in the energy sector. People consider it a company that lays the foundation for the country’s energy security, as its work, despite being behind the scenes, impacts the entire nation.

6. Bharat Petroleum Corporation Ltd (BPCL)

BPCL was established in 1976 when the government decided to consolidate petroleum-related operations in the country. Prior to this, several small companies operated in separate capacities, but they were merged to form a large, trusted entity BPCL. Initially, the company focused on the basic tasks of refining and transporting petroleum products, but gradually its network expanded to the point where its signboards became a common sight on highways. A distinctive feature of this company is its unwavering commitment to maintaining fuel supply, whether in difficult circumstances or on normal days.

7. HDFC Bank Ltd

HDFC Bank was founded in 1994, at the dawn of a new era for private banks. Banking wasn’t as simple back then, but HDFC Bank focused on providing clean systems and reliable services from the start. The bank primarily handles daily accounts, digital banking, and support for small businesses. Gradually, it established its reputation as a bank that operates professionally and provides hassle-free customer service. Technology continued to evolve, and the bank adapted accordingly; perhaps that’s why it’s considered one of the most trusted banks today.

8. Hindustan Petroleum Corporation Ltd (HPCL)

HPCL was formed in 1974. The clear reason behind its formation was that petroleum-related work was a bit fragmented at the time, and the country needed a company that could effectively manage the entire supply and process. It started small refining and basic distribution but gradually its network expanded significantly. Today, it handles a significant portion of the fuel supply across India. Its primary focus is ensuring that fuel shortages are not faced and that the required supplies are delivered on time. HPCL has a reputation as a steady, focused company that performs its duties without any pretense.

9. Tata Motors Passenger Vehicles Ltd

Tata Motors was founded in 1945, at a time when India was in the early stages of industrial development. The company initially began with trucks and heavy vehicles, as that was what the country needed most at the time. Later, as the demand for cars grew, Tata gradually began focusing on passenger vehicles as well. The company’s approach has always been a little different—it observes the type of car Indian families actually prefer and then designs its models accordingly. Safety, robust construction, and simplicity these three qualities are clearly evident in Tata cars. Over time, the company has learned to adapt, and that’s why many of its models have become everyday favorites.

10. Larsen & Toubro Ltd (L&T)

L&T was founded in the 1930s when two engineers wanted to professionalize engineering and construction in India. Initially, the company performed small jobs, imported machinery, and provided some technical services. Over time, these small projects evolved into larger projects. Today, L&T handles everything from metro lines to large bridges, factories, and industrial plants. The company is particularly known for its ability to patiently complete even difficult tasks. Wherever a major infrastructure project is involved, the L&T name is often associated with it in some way.

Read Also: Top Cash-Rich Companies in India

Key Performance Indicators (KPIs)

The key performance metrics of Highest Revenue Stocks Stocks in India are mentioned below:

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	P/E (x)
Reliance Industries Ltd	13.50	8.37	8.25	8.70	24.77
HDFC Bank Ltd	25.58	21.83	13.56	2.62	9.85
State Bank of India	21.80	16.09	16.87	1.91	8.88
Larsen & Toubro Ltd	10.33	6.91	15.39	14.89	31.93
Life Insurance Corporation of India	6.13	5.42	38.15	0.97	10.50
Oil & Natural Gas Corpn Ltd	10.79	6.09	10.54	11.15	8.55
Indian Oil Corporation Ltd	2.99	1.58	7.39	8.22	12.94
Bharat Petroleum Corporation Ltd	4.73	2.72	16.38	16.30	8.92
Tata Motors Passenger Vehicles Ltd	8.89	6.33	23.96	18.45	5.14
Hindustan Petroleum Corporation Ltd	2.87	1.57	13.16	12.67	11.38

(Data as of 27 Nov 2025)

Consider Before Investing in High-Revenue Companies

Understand the company’s core business : Before investing, it’s important to consider the company’s revenue stream and its stable business model. Large revenue alone doesn’t fully reflect a company’s strength.
Assess the state of the sector : Not every industry grows at the same pace. Understanding the future direction and strong demand of the sector in which a company operates is crucial for investing.
Pay attention to management credibility : Who runs a company makes a significant difference in long-term performance. Companies with strong and experienced leadership are better able to handle challenges.
Determine your investment horizon : If your goal is long-term, large and stable companies may be a better choice. However, if you need short-term returns, making decisions based solely on revenue can be risky.

How to invest in Top Indian Companies by Highest Revenue with Pocketful

With Pocketful, you can follow a simple setup to invest in India’s highest revenue companies:

Account Setup: Open and complete KYC on Pocketful.
Stock Screening: Use screeners to filter high-revenue leaders.
Analysis Setup: Check financials, KPIs, and valuations.
Entry Setup: Use charts to find better buying levels.
Order Setup: Place delivery orders directly.
Tracking Setup: Monitor and rebalance your portfolio regularly for long-term growth.

Conclusion

It’s easy to see a large company and understand its potential, but investment decisions should always be made with some thought. Each company’s operations are unique, and its strengths depend on this. Therefore, it’s best to assess its business’s sustainability over the coming years and its ability to adapt to changes. If these factors are clear, such companies can be a good addition to your portfolio in the long run.

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Frequently Asked Questions (FAQs)

Which Indian company has the highest revenue?
As per the latest data in this list, Reliance Industries Ltd has the highest revenue among Indian companies, driven by its diversified presence in energy, petrochemicals, retail, and digital services.
Is it safe to invest in high-revenue companies?
One shouldn’t judge based solely on revenue. The company’s performance and stability are also important.
What should I check before investing?
The company’s business model, the state of the sector, and how management operates—these three things are sufficient.
Do PSU companies rank high in revenue?
Yes, many PSU companies operate on a large scale, so they often appear in the top lists.
Does high revenue mean high profit?
Not necessarily. Expenses are often high, which leads to low profits.

December 20, 2025

Best Tea and Coffee Stocks in India

Tea and coffee is something that is used by most of the Indians to start their day with, making it a common habit resulting in a huge and stable market for the tea and coffee companies in India. The continuous demand gives a strong sale every year to these companies.

India is a tea drinking nation and here tea is consumed almost 15 times more than coffee. This deep-rooted habit provides solid support for basic tea stocks in India.

Investors can look for two important factors to grow in this sector, first by the large-scale consumption in the country itself and secondly by the high global trade. India plays a vital role as it is the 3rd largest tea exporter worldwide and the 7th largest coffee producer in the world. These factors help us in domestic as well as the international sales, making both coffee stocks India and tea stocks important.

Tea and Coffee Market Trends

There is stability in the Indian Tea market and it is a huge market with a potential to grow its revenue to about US $2.8 Billion by 2030 which is steadily growing at 4.8% per year. The traditional black tea is still among the most popular types of tea.

Although the Indian Coffee market is rising rapidly and is estimated to reach over US $2.8 billion by 2030 with a growth rate of about 7.8% per year. This jump is witnessed because the purchasing capacity is increasing and people are shifting towards the cities. The rapid growth in coffee compared to tea gives us a picture about the future profits that will be coming from premium coffee and other high value products.

Best Tea and Coffee Stocks for 2026

1. Tata Consumer Products Ltd. (Tata Consumer)

Tata Consumer Products Ltd. is one of the undisputed leaders in the sector which has a huge market capitalization of over Rs.1,13,698 Cr. This company owns big household brands like TATA Tea for the domestic market and Tetley for the world. There is a high diversification in this business with packaged foods and beverages giving it an extra edge and saving it from the direct impact of swinging tea and coffee commodity prices.

The company is strategically consolidating its position, having merged/demerged its Tata Coffee operations into the main Tata Consumer structure. This makes the overall business clearer and reinforces its standing as an integrated food and beverage powerhouse.

2. CCL Products (India) Ltd.

CCL Products is one of the unique players in the market that is known as the world’s largest private label manufacturer of instant coffee. It has a B2B business model with almost 90% of its revenue coming from bulk exports of Instant coffee to multiple global brands and clients that require private labels. The main strength of the company is its global scale and cost efficient manufacturing. It cleverly avoids many local commodity price risks by purchasing raw materials globally and exporting finished, value-added products, which gives operational resilience and stable margins to the company.

3. Vintage Coffee & Beverages Ltd. (VCBL)

VCBL was incorporated in the year 1980, it specializes in manufacturing and exporting instant coffee and chicory. The products of this company are sold under its own ‘Vintage’ brand which also offers private labeling services. This company has a strong focus on the technology, such as using advanced double aroma recovery systems, and also provides customized packaging solutions to the global customers. The company has a market capitalization of over Rs.2,377 Cr and shows healthy return ratios, such as an ROE of 17.0%.

4. Tata Coffee Ltd.

Although TATA coffee was earlier a separate business entity, it is no longer independently listed. The plantation business of TATA coffee is demerged into a subsidiary of TATA consumer, and the rest of the business under this company are merged into TATA Consumer Products Ltd. Investors who were having shares of TATA Coffee have received a ratio of shares of TATA Consumer Products Ltd. as part of this demerger arrangement.

5. Bombay Burmah Trading Corporation Ltd. (BBTCL)

With its historic presence in the coffee and tea sector BBTCL is one of the oldest listed companies in India. The company is primarily viewed as a holding company as it has a good amount of stake in Britannia Industries. Though the company has a good exposure to plantations as well, the stock price performance is mainly connected to the results and valuation of Britannia.

6. Goodricke Group Ltd.

Goodricke Group Ltd. company is a major tea planter with its tea gardens located in Darjeeling, Assam, and Dooars. The company mainly deals in bulk teas and instant teas. The land bank of the company has also been increased as it has acquired certain estates from McLeod Russel, by taking the advantage of distress in the organized tea sector. Majority of the revenue generation of the company is done from the domestic markets.

7. Jay Shree Tea & Industries Ltd.

Jay Shree Tea & Industries Ltd. company is part of B.K.Birla group and is amongst the largest producer and exporter of tea with its estates situated in Indian regions and East Africa. It not only focuses on tea but also offers diversification through products of non tea segments like sugar and chemicals. The company is highlighted for its high-quality speciality teas, including Darjeeling First Flush Oolong Tea. Majority of the company’s revenue is generated from India only.

8. McLeod Russel India Ltd. (MRIL)

McLeod Russel was once a major leader in the tea plantation sector. However, the company has faced severe financial and operational difficulties in recent years. Its ongoing struggles demonstrate the high volatility and inherent risks associated with the heavily indebted bulk plantation business model.

9. Rossell India Ltd.

Rossell India Ltd. company is not only based in the tea sector but also has its presence outside of its core agricultural business. The company is present in the aerospace and defense sector as well. The main focus of the company is to grow, manufacture and sell high-quality tea in the national and international market.

10. Dhunseri Tea & Industries Ltd. (DTIL)

DTIL is a smaller listed plantation company whose profitability is very exposed to the financial stress currently affecting the organized bulk tea sector. The company’s stock performance has seen significant negative returns over the short and long term.

Company Name	Market Cap	Stock Price	52 Week High	52 Week Low
Tata Consumer Products Ltd.	Rs.1,13,767 Cr.	Rs.1,162	1,202	883
CCL Products (India) Ltd.	Rs.12,412 Cr.	Rs.929	1,074	525
Vintage Coffee & Bev. Ltd.	Rs.2,377 Cr.	Rs.164	174	147
Jay Shree Tea & Ind. Ltd.	Rs.240 Cr.	Rs.83	151	82
Goodricke Group Ltd.	Rs.358	Rs.166	295	162
McLeod Russel India Ltd.	RS.458	Rs.44	68	28
Dhunseri Tea & Ind. Ltd.	Rs.170 Cr.	Rs.162	314	146
Rossell India Ltd.	Rs.204	Rs.54	97	53
Bombay Burmah Trading Corp.	Rs.12,663	Rs.1,815	2,488	1,607

Data as of 08.Dec.2025,

Key Factors to Consider for Tea and Coffee Stocks

1. Revenue Mix

While analysing these companies investors shall look for companies sales and where is it coming from. Branded players like TATA Consumers have the pricing power as they sell packaged goods under established brands. These companies often dictate the prices, ensure stable revenue and pass the rising raw material costs onto consumers. This provides a stable revenue and profit. However, Tea and Coffee producing companies are “price takers” as their main focus is on selling raw commodities via auctions and profits depend upon the highly volatile auction prices. The companies with high bulk exposure have more erratic and unpredictable earnings, making them a little riskier option.

2. Financial Health and Margin Check

Margin Stability is the main factor as investors shall look at the trend of EBITDA margin (operating profit measure) and Return on Equity (ROE). Companies showing a continuous high ROE tells us that the management is efficient in getting profits from the shareholders capital.

Debt Levels and Working Capital shall be considered for plantation firms, as farms have a seasonal cycle here production has a graphical pattern as these companies require more capital due to bridging the gap between putting money on plantation and getting money from final sales. High debt is considered as a warning whereas companies that maintain their Debt-to-Equity ratio under 0.5 are generally considered safer.

3. Quality of Leadership and Management

Corporate governance of the companies is extremely important especially for smaller firms. In small promoter driven plantation companies there is generally a risk concentrated shareholding and potentially complex crossholdings. As an investor you should look for factors like clear financial reporting, professional management and a transparent shareholding pattern.

4. Valuation Metrics

This metric helps in determining if the stock price is low or high compared to other stocks in its segment. P/E ratio mainly used and companies like TATA generally trade at high P/E ratio which reflects that the market is ready to pay a premium for the company’s stability, predictable growth, and powerful brand leadership.

For Plantation stocks, the valuation is more complex as these bulk creators have volatile earnings meaning the P/E ratio might fluctuate widely or may even come down to zero during a bad yield year. A very low P/E of a stock does not mean it is cheap, rather it is a signal that the company has high risk or has poor quality of earnings.

5. Climate Risk (ESG Focus)

This is the biggest unpredictable issue of the farming businesses. Tea cultivation heavily relies on static temperature and consistent rainfall. In the past few years weather has shown an unusual pattern, like severe frosts followed by sudden temperature spikes, and then massive rainfall, which causes significant crop losses. This risk shows that Environmental (E) factors and Social (S) factors (like labour) are central financial risks for plantation stocks.

Key Financials of Tea and Coffee Stocks

Financial Comparison of Key Tea and Coffee Stocks (Approximate Metrics)

Company Name	P/E Ratio	ROE (%)	ROCE (%)	Dividend Yield (%)
Tata Consumer Products Ltd.	76.72	6.39	7.92	0.71
CCL Products (India) Ltd.	37.5	17	13.1	0.53
Vintage Coffee & Bev. Ltd.	40.7	17	15.4	0.06
Jay Shree Tea & Ind. Ltd.	12.0	9.73	3.74	0.58
Goodricke Group Ltd.	0.0	2.86	3.22	0.00
McLeod Russel India Ltd.	-1.78	0.00	-13.62	0.00
Dhunseri Tea & Ind. Ltd.	0.00	-9.21	-44.5	0.62
Rossell India Ltd.	10.8	10.8	10.5	0.72
Bombay Burmah Trading Corp.	11.6	21.9	35.5	0.92

Data as of 08.Dec.2025

Check Out: List of Tea & Coffee Sector Stocks

Risks to Consider

Climate Vulnerability: Climate is a major player which is a very unpredictable risk for the plantation company. As both tea and coffee’s growth is majorly dependent on the stable weather patterns.
Commodity Price Swings and FX: The prices of tea and coffee are decided globally and if there is a global surplus in the production of these commodities then prices are directly hampered.
Foreign Exchange (FX) Risk: In the foreign exchange market if the Indian rupee suddenly gets stronger in comparison with the global currencies like US Dollar or Euro the portion of profits shrinks. Due to this the Indian exporters have a risk to the changing forex rates.
Labour Cost Pressure: Labour wages are a fixed cost that tends to rise with time. Also the Indian Tea Association has seen a sharp decline in the profits due to increasing labour cost.
Concentrated Revenue: Most of the tea companies heavily rely on one or two specific regions like assam or darjeeling or any single type of tea, making them highly susceptible to risk if these areas face hardship due to weather, production issue or if demand falls.

Pocketful is a one stop solution to invest in stocks, ETFs, and other assets. So as an investor you can do your research, identify potential tea stocks or coffee stocks and use the pocketful platform to invest for your future trades.

Conclusion

Investing in tea and coffee stocks is a compelling investment area which is directly dependent upon domestic consumption and increasing global export opportunities.

Although this sector requires a careful analysis and before investing you should understand the difference between brand-led companies and plantation based companies.

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Frequently Asked Questions (FAQs)

What is the main difference between FMCG and Plantation Stocks?
FMCG stocks mainly depend upon branding, marketing, and distribution of their products to earn a stable margin. On the other hand plantation stocks depend upon crop yield and the international price fluctuations which gives highly volatile earnings.
Why is specialty coffee a key trend to watch?
Specialised coffee’s growth is rising rapidly with 13.6% CAGR in India. The growth is driven by a new and young consumer base and a demand for premium, high value products that gives a good profit to those companies that focus on high quality production.
How can climate affect the product yield?
Sudden changes in the weather like droughts, hailstorms, and frosts directly affects the crop yield of both tea and coffee which has a direct effect on bulk production.
How are margins lowering for bulk tea producers?
They are shrinking because of fixed costs of labour and the stagnant or declining prices due to increased production and surplus supply.
Is Tata Coffee still listed on the stock exchange?
Right now the company is having a merger with TATA Consumer Products, that is leading to its effective removal from the index and consolidation under the larger entity.

December 19, 2025

Best High EPS Stocks in India

Before investing in any stock, it is essential to conduct thorough fundamental research to minimise potential losses. There are various parameters through which this research can be completed. One such indicator is EPS, or Earnings Per Share, which represents a company’s profitability, operational efficiency, etc.

In today’s blog post, we will give you an overview of the best high EPS stocks in India, along with the benefits of investing in them.

What are High EPS Stocks?

High EPS stocks are the shares of those companies which generate high profits, with respect to outstanding shares. This financial metric is used by the investor to evaluate the company’s profitability and its financial health. Companies with high EPS are those which consistently post strong profitability over time.

Top High EPS Stocks to Buy in India

Akzo Nobel India Limited
Hindustan Petroleum Corporation Limited
National Aluminium Company Limited
Bharat Petroleum Corporation Limited
Chambal Fertilisers & Chemicals Limited
General Insurance Corporation of India
Power Finance Corporation Limited
REC Limited
NMDC Limited
LIC Housing Finance Limited

Company	Current Market Price (INR)	Market Capitalisation (in INR crore)	52-Week High	52-Week Low
Akzo Nobel India Limited	3,616	16,467	3,958	3,022
Hindustan Petroleum Corporation Limited	464	98,730	495	288
National Aluminium Company Limited	276	50,755	280	138
Bharat Petroleum Corporation Limited	366	1,59,223	382	234
Chambal Fertilisers & Chemicals Limited	446	17,893	742	410
General Insurance Corporation of India	378	66,360	526	351
Power Finance Corporation Limited	336	1,10,965	513	335
REC Limited	336	88,476	566	335
NMDC Limited	77	67,916	79	59
LIC Housing Finance Limited	527	29,007	647	484

(As of 16th December 2025)

Overview of Best High EPS Stocks in India

The detailed overview of the best high EPS stocks in India is as follows:

1. Akzo Nobel India Limited

Akzo Nobel India Limited company started operations in 1954, and it was a subsidiary of AkzoNobel N.V., which was a leader in paints, coatings, etc. It expanded into various entities and later consolidated its business units into a single entity. It focuses on decorative paints, coatings for both industrial and automotive usage. The company’s headquarters is situated in Haryana.

2. Hindustan Petroleum Corporation Limited

Lube India Limited and Esso Standard were merged to form HPCL in 1974. In 1992, the company became the first public sector company to list on the Bombay Stock Exchange. The company was made a Maharatna after achieving a profit of 10644 crore. In India, it operates through a network of over 17,000 gas stations, of which 40% are found in urban areas, and the rest are situated on highways and in rural areas. The company is headquartered in Mumbai.

3. National Aluminium Company Limited

National Aluminium Company Limited company was incorporated in 1981 to enhance the country’s aluminium production capacity. It established offices in Singapore and Dubai and became a prominent player in the aluminium export industry. In 2011, the company received the status of Navratna. The company is currently focusing on the expansion of its mining and refineries, as well as renewable energy sources. The head office of the company is situated in Odhisha.

4. Bharat Petroleum Corporation Limited

BPCL was established in 1952 by Burmah Shell and the Indian government in the form of a joint venture. In 1976, the Indian government bought Burmah Shell, thus turning BPCL into a wholly owned government company. The company is involved in the exploration, refining, distribution, marketing, and sale of petroleum and petroleum-related products. The Ministry of Petroleum and Natural Gas of the Indian government controls it. The company was given the status of Maharatna Company, and its headquarters are located in Mumbai.

5. Chambal Fertilisers & Chemicals Limited

Chambal Fertilisers & Chemicals Limited founded in 1985 as a part of the K.K. Birla Group. It was initially known by the name Aravali Fertilisers Limited, and later in 1989, it was renamed as Chambal Fertilisers Limited. The company manufactures high-quality fertilisers, ureas, etc. The company launched its IPO in 1993. The company’s headquarters is situated in New Delhi.

7. General Insurance Corporation of India

In 1972, the company General Insurance Corporation was established and incorporated under the General Insurance Business (Nationalist) Act. It formed four subsidiaries, which were called National Insurance Company, New India Assurance, oriental Insurance and United India Insurance. In the year 2017, the company issued its IPO, which happened to be among the largest insurance IPO in India. GIC functions under the Ministry of Finance. The company’s head office is situated in Mumbai.

8. Power Finance Corporation Limited

Power Finance Corporation Limited is one of the biggest public sector companies in India that provides funding to the power industry. The PFC was set up in 1986 and provides funding to projects which are involved with power generation, transmission, and distribution. The company is also engaged in renewable energy projects and helps with the execution of a number of government programs. The headquarters of the company is in New Delhi.

9. REC Limited

In 1969, the Rural Electrification Corporation Limited (REC) was formed with an objective to construct the infrastructure needed for rural electrification. The company went public in 2008 and became a publicly listed company. The Government of India gave it the title of “Navratna” later that year. The company’s headquarters is in New Delhi.

10. NMDC Limited

The government of India formed NMDC in 1958 to exploit the mineral resources. This company was first involved in the exploration of iron ore, copper, etc. Since its operations started in iron mining, it has diversified to diamond, gold, etc mining. In 2008, the company was granted the status of Navratna. In 2010, NMDC issued an IPO and became a publicly traded company. The head office of the company is located in Telangana.

11. LIC Housing Finance Limited:

Housing Finance Limited. LIC was founded in 1989 as a subsidiary of Life Insurance Corporation of India, the goal of which was to offer affordable housing loans to societies. In 2008, it set up a subsidiary in Dubai to offer its services to Indians living in the Gulf cities. Its IPO was introduced in 1994, and the company turned into a publicly traded company. The company has its headquarters in Mumbai.

Read Also: 10 Low PE Ratio Stocks in India

Key Performance Indicators (KPIs)

Company	Debt to Equity	ROE (%)	ROCE (%)	Operating Profit Margin (%)	Net Profit Margin (%)	EPS
Akzo Nobel India Limited	0	32.31	39.88	14.16	10.49	94.31
Hindustan Petroleum Corporation Limited	1.30	13.16	22.05	2.87	1.57	31.66
National Aluminium Company Limited	0.01	29.58	37.11	42.85	31.71	28.68
Bharat Petroleum Corporation Limited	0.63	16.38	16.30	4.73	2.72	31.21
Chambal Fertilisers & Chemicals Limited	0	18.89	23.14	14.22	9.11	41.17
General Insurance Corporation of India	0	12.08	11	19.69	14.05	42.36
Power Finance Corporation Limited	8.25	19.52	65.86	96.99	28.65	69.67
REC Limited	6.38	20.41	68.85	96.24	28.18	60.20
NMDC Limited	1.34	12.72	9.40	30.21	20.96	20.34
LIC Housing Finance Limited	7.44	14.97	71.54	93.93	19.35	98.95

Benefits of Investing in High EPS Stocks in India

The key benefits of investing in high EPS stocks in India are as follows:

High Profitability: Stocks with high EPS have strong fundamentals and a business model. They consistently generate profit, which makes them more reliable during economic downturns.
Low Risk: Investment in stocks having high EPS generates profit in the long run and tends to have lower risk than other companies because of high cash reserves and less debt.
Positive Sentiments: These stocks generally have positive market sentiments because they attract investments from the FIIs, DIIs, etc.

Factors to Consider Before Investing in High EPS Stocks in India

The key factors which one should consider before investing in high EPS stocks are as follows:

Company’s Financials: Before investing in any stock with high EPS, one must check its financial performance. The company’s revenue must be increasing and have high profit margins.
No One-Time Gain: There should not be a one-time gain or profit, as it may raise EPS in a particular year.
Competition: An investor needs to check for the company’s competition before investing. EPS cannot be the only parameter to invest in a company.

Read Also: List Of Best Paper Stocks in India

Conclusion

To sum up, investing in businesses where there is a high EPS will give you a chance to generate wealth over a long period. When EPS is high, it indicates that it is profitable, growing, and it is efficient in creating wealth for the shareholders in the long run. But investment based only on EPS is not a good one, and one should check other parameters and then make an investment, and can consult their investment advisor.

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Frequently Asked Questions (FAQs)

What is the full form of EPS?
The full form of EPS is Earnings Per Share.
Name some stocks which have high EPS?
The stocks which have high EPS are Bharat Petroleum Corporation Limited, National Aluminium Company Limited, Hindustan Petroleum Corporation Limited, Chambal Fertilisers and Chemicals Limited, REC Limited, etc.
What are high EPS stocks?
High EPS stocks are the shares of those companies which report high earnings, profitability relative to their outstanding number of shares.
What is the formula to calculate the EPS?
The formula to calculate the EPS is Net Profit/Total Number of Outstanding Shares.
Is it advisable to invest in companies with high EPS?
Yes, one can invest in companies with high EPS as it reflects high profitability. However, investing based only on EPS is not a good idea; there are various other factors which also need to be considered before investing.

December 19, 2025

SIP in ETF: How to Invest Regularly in ETFs

Investing is no longer about making one big move at the right time. For many, it’s about being consistent. That’s where the idea of SIP in ETF comes in. It allows you to invest small amounts regularly in Exchange Traded Funds, just like you do in mutual funds. Over time, this habit helps you build wealth without worrying too much about market ups and downs.

Unlike traditional mutual fund SIPs, ETF SIP give you more control and transparency, as you directly invest in funds that track market indices like Nifty or Sensex. It’s simple, disciplined, and suits those who prefer long-term investing with a cost-effective approach.

But the question is, how can you do the same? Well, read this guide to know everything you need to know about the SIP in ETF and plan better.

What Is SIP in ETF?

A Systematic Investment Plan (SIP) in an ETF is a simple and consistent way to invest a fixed amount at regular intervals in Exchange Traded Funds. It helps investors build wealth gradually. This is mainly done by spreading their investments over time instead of making a lump sum purchase.

Through SIP in an ETF, you buy small units of an index-based fund like Nifty 50 or Sensex every month. This approach encourages discipline, reduces the impact of market volatility, and supports long-term wealth creation.

SIP in ETF: How to Get Started

Starting a SIP in ETF is simple once you know the process. Since ETFs trade like shares on the stock exchange, you’ll need a few basic things before you begin. Here’s how you can start your ETF SIP step by step.

1. Open a Demat and Trading Account

To invest in SIP ETF, you need an active Demat and trading account with a registered broker. This account will hold your ETF units and help you buy or sell them directly on the exchange.

2. Choose the ETF

Select an Exchange Traded Fund that matches your goal. You can pick from index-based options like Nifty 50, Sensex, or thematic ETFs. This will be based on your risk appetite and time horizon.

3. Decide the SIP Amount and Interval

Fix a comfortable monthly investment amount for your SIP in ETF. Most investors prefer a monthly cycle, but you can also choose daily, weekly & quarterly depending on your budget.

4. Set a Reminder or Use Broker Tools

As most platforms don’t have an automatic SIP feature for ETFs, you can set reminders or use your broker’s automation tool to buy units on a fixed date every month.

5. Track Your Investment

Keep an eye on your ETF SIP performance. Ensure to track them regularly and make changes in the portfolio to ensure you gain good returns.

Benefits of SIP in ETF

A SIP in ETF combines the advantages of systematic investing with the transparency of exchange-traded funds. Some of the key benefits that you must know are as follows:

1. Promotes Consistent Investing

Investing through a SIP in ETF helps you stay disciplined. This allows you to invest a fixed amount at regular intervals. This habit eliminates the emotional decisions for better returns.

2. Lower Cost of Investing

ETFs generally have a lower expense ratio. With a SIP ETF, you benefit from lower fees. This means a larger amount is invested to grow, and you still gain exposure to a diversified portfolio.

3. Diversified Portfolio

A single ETF can track a market index like Nifty 50, Sensex, or Nifty Next 50. This gives you access to multiple companies in one go. This reduces the risk of investing in individual stocks.

4. Rupee Cost Averaging

When you invest the same amount regularly, you buy more units when prices are low and fewer when they are high. This helps to average out the cost and you can earn better returns.

5. High Liquidity and Transparency

ETFs trade on the stock exchange just like shares. You can buy or sell them anytime during market hours, and you always know the price you’re paying. This gives SIP in ETF high flexibility and transparency.

Limitations of SIP in ETF

While ETF SIP offers many advantages, it also has some practical challenges that investors should consider before starting.

1. No Automatic SIP Facility

Most brokers do not offer an automatic SIP option for ETFs. You either need to buy units manually every month or use your broker’s automation tools, if available.

2. Need for Demat and Trading Account

To start a SIP in an ETF, you must open a Demat and trading account. For new investors, this adds an extra step compared to traditional mutual fund SIPs.

3. Market Price Fluctuation

ETF prices move throughout the day based on demand and supply. This can slightly impact the cost of your investment each time you buy units.

4. Tracking Error

The performance of an ETF might not perfectly match its underlying index. Factors like fund management costs and cash holdings can create a small deviation called tracking error.

5. Limited ETF Options in India

The Indian ETF market is still developing. As a result, investors may find fewer thematic or sector-specific ETF choices compared to mutual funds.

Popular ETFs for SIP in India

If you plan to start a SIP in an ETF, choosing the right fund is important. The best ETFs offer high liquidity, low tracking error, and a proven record of tracking their underlying index efficiently. Here are some of the top ETF SIP options you can consider in India for 2026.

1. Nippon India Nifty BeES

This is one of the oldest and most popular ETFs in India. It tracks the Nifty 50 Index and offers a low expense ratio with good liquidity. Ideal for beginners looking to invest in large-cap companies through a disciplined SIP approach.

2. SBI ETF Sensex

Backed by SBI Mutual Fund, this ETF mirrors the BSE Sensex Index. It’s known for stability, tight tracking accuracy, and consistent returns. A SIP in an ETF like this suits investors who prefer blue-chip exposure.

3. HDFC Nifty Next 50 ETF

This ETF focuses on companies ranked between 51 and 100 on the NSE. It provides a chance to invest in India’s potential future large-caps. A SIP ETF in this fund can add growth potential to your portfolio.

4. ICICI Prudential Nifty Bank ETF

For those interested in the banking sector, this ETF tracks the Nifty Bank Index. A SIP in ETF here allows investors to benefit from the performance of top Indian banks.

5. UTI Nifty 50 ETF

Managed by UTI Mutual Fund, this ETF offers wide market exposure and low tracking error. It’s a strong option for long-term investors who want steady growth through an ETF SIP.

Common Challenges in SIP in ETF

While SIP in ETF offers structure and affordability, it also has some hurdles that investors should know before starting. These challenges can affect convenience and returns if not managed properly.

1. Manual SIP Setup

Unlike mutual funds, there is no automatic SIP option for ETFs on most exchanges. Hence, you would need to set reminders to ensure you make the payments on time.

2. Price Fluctuations

ETFs are traded throughout the day, so the buying price keeps changing. This can slightly impact the cost per unit each month in your ETF SIP.

3. Tracking Error

An ETF may not always perfectly match the returns of its benchmark index. Small differences, known as tracking errors, can affect overall returns.

4. Demat Account Requirement

You cannot start a SIP ETF without a Demat and trading account. This adds an additional step for beginners.

5. Limited ETF Categories

Although ETF options are growing in India, they are still fewer than mutual funds. This restricts diversification across themes and sectors.

Is SIP in ETF Safe?

Yes, SIP in an ETF is generally safe. This is when you invest in reputed ETFs that track well-known indices like Nifty 50 or Sensex. Since ETFs represent a basket of stocks, the risk is diversified. But still, the returns and performance are market-linked. So, there is no certainty. Staying invested for the long term and maintaining consistency helps reduce short-term volatility risk.

Conclusion

A SIP in ETF is a practical way to invest regularly in India’s top market indices. Through this, you can generate wealth and build a good corpus over time. But to ensure this, you need to plan well and invest in a systematic manner.

If you’re planning to begin your journey, take small steps and stay consistent. Learn more about smart investing with Pocketful and make every investment an informed one.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best SIP Apps in India for Investment
2	Best ETFs in India to Invest
3	ETF vs Stock – Which One is the Better Investment Option?
4	Gold ETF vs Gold Mutual Fund: Differences and Similarities
5	ETF vs Index Fund: Key Differences You Must Know
6	SIP vs Lump Sum: Which is Better?
7	How to Invest in Mutual Funds?
8	How to Cancel Mutual Fund SIP?
9	Budget 2024: Explainer On Changes In SIP Taxation
10	Who Regulates Mutual Funds in India?

Frequently Asked Questions (FAQs)

Can I start a SIP in an ETF without a broker?
No, a Demat and trading account with a registered broker is required to invest in ETFs.
Are ETFs suitable for short-term SIPs?
No, SIP in ETF works best for long-term goals, usually beyond three years, to benefit from market averaging.
Do ETFs pay dividends to SIP investors?
Yes, if the ETF distributes dividends, investors receive them in proportion to their holdings.
Can SIP in ETF be paused or changed anytime?
Yes, since most SIPs in ETFs are manual, you can adjust or skip purchases at your convenience.
Is it better to start SIP in index ETFs or sector ETFs?
For beginners, index-based ETFs like Nifty 50 or Sensex are safer. Sector ETFs carry higher risk due to limited diversification.

December 18, 2025

Blog

What are Candlestick Patterns? 38 Candlestick Patterns Every Trader Must Know

Basics of Candlesticks

1. Candlestick Body

2. The Wicks (or Shadows)

3. Open and Close

4. Timeframe

Single Candlestick Patterns

Bullish

Bearish

Double Candlestick Patterns

Bullish

Bearish

Triple Candlestick Patterns

Bullish

Bearish

Additional Candlestick Patterns

Conclusion

Frequently Asked Questions (FAQs)

What are candlestick patterns?

Do these patterns work on all timeframes?

Can I trade using only candlestick patterns?

Are long wicks good or bad?

How do I use candlestick charts to make trading decisions?

Why do candlesticks have different shapes and sizes?

What is a wick in a candlestick?

How can a beginner learn about the candlestick pattern?

Who discovered the first candlestick pattern?

Should beginners learn candlesticks?

Types of Foreign Direct Investment (FDI)Explained

What Is FDI?

How FDI Works

Step 1: Understand the Target Market

Step 2: Select the Entry Route

Step 3: Allocate the Investment

Step 4: Obtain Ownership and Control

Step 5: Begin Operations

Step 6: Monitor and Expand

Factors That Affect FDI

Types of FDI

1. Horizontal FDI

2. Vertical FDI

3. Conglomerate FDI

4. Platform FDI

5. Greenfield FDI

6. Brownfield FDI

Conclusion

Frequently Asked Questions (FAQs)

What is the main goal of FDI?

How is FDI different from portfolio investment?

Which type of FDI is used most often?

Why do countries try to attract FDI?

Is FDI risky for businesses?

How to Read Stock Charts: A Beginner’s Guide to Chart Analysis

What Are Stock Charts?

Basic Components of a Stock Chart

1. Price Axis (Vertical Axis)

2. Time Axis (Horizontal Axis)

3. Timeframes

4. Volume Bars

5. Candlesticks

Common Chart Types & When to Use Them

Understanding Candlestick Charts

1. Candlestick Components

2. Upper Shadow (Upper Wick)

3. Lower Shadow (Lower Wick)

4. Candle Colours (Market Sentiment)

Timeframes & Multi-Timeframe Analysis

Why Do Different Timeframes Show Different Pictures ?

How Timeframes Affect Trading Style ?

Why Does Higher Timeframe Come First ?

Trend Analysis: The Backbone of Chart Reading

Higher Highs & Higher Lows (HH/HL Pattern)

Trendlines

Channels

Support & Resistance: Price Movement

1. What is Support?

2. What is Resistance?

Volume Analysis For Chart Reading

What is Volume?