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  • Types of Commodity Market in India

    Types of Commodity Market in India

    The commodity market plays a crucial role in the global economy. Here, derivative contracts of commodities are traded. It provides a platform for producers and consumers to manage risks and, at the same time, allows traders to take advantage of price movements. 

    Commodities are bulk-produced raw materials. These can be wheat, soybean, or precious metals. They must meet certain quality and quantity standards to be eligible as an underlying asset of the derivative contracts. These derivative contracts are traded widely among multiple buyers and sellers.

    In this blog, we will discuss the types of commodity markets in India.

    What is a Commodity Market?

    A commodity market is a platform where commodities such as gold, silver, crude oil, agricultural products, etc., are bought and sold. These transactions can happen either via spot transactions or through derivative contracts.

    These markets act as bridges between the sellers and buyers of commodities. This way, producers can sell their goods and also hedge against the volatility in the prices while consumers can get the commodities needed at the cheapest price possible. 

    Types of Commodity Market in India

    The commodity market in India can be broadly classified into different types. Some of the common types of commodity markets include:

    1. Spot Market

    The spot market, or cash market, is a marketplace where commodities are bought and sold for immediate delivery. This market is characterized by physical transactions. Here, buyers and sellers negotiate prices based on the prevailing market conditions. The buyers often take possession of the commodity immediately after the payment has been made.

    2. Derivatives Market 

    • Futures 

    Futures contracts allow you to trade, buy or sell commodities for delivery in the future. The market allows buyers and sellers to enter contracts to purchase or sell a particular commodity at a specified price at a predetermined date.

    • Options 

    An option is a type of financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price, known as the strike price, on or before a set expiration date.

    Options are of two forms:

    • Call Options: Give the holder the right but not the obligation to buy the asset.
    • Put Options: Give the holder the right but not the obligation to sell the asset.

    Options can be traded before expiration. However, the actual transfer of the asset occurs only after the option is exercised.

    • Forwards

    Forwards contracts are similar to futures contracts but differ in one key aspect. Futures contracts are traded on organized exchanges and have a standardized contract size. On the other hand, forward contracts are over-the-counter (OTC) financial instruments, due to which these contracts are negotiated directly between buyers and sellers.

    Types of Commodity Markets in India
    Gold Rate in Top Cities of IndiaSilver Rate in Top Cities of India
    Gold rate in AhmedabadSilver rate in Ahmedabad
    Gold rate in AyodhyaSilver rate in Ayodhya
    Gold rate in BangaloreSilver rate in Bangalore
    Gold rate in BhubaneswarSilver rate in Bhubaneswar
    Gold rate in ChandigarhSilver rate in Chandigarh
    Gold rate in ChennaiSilver rate in Chennai
    Gold rate in CoimbatoreSilver rate in Coimbatore
    Gold rate in DelhiSilver rate in Delhi
    Gold rate in HyderabadSilver rate in Hyderabad
    Gold rate in JaipurSilver rate in Jaipur

    Types of Commodities in the Commodity Market

    The commodity market in India offers a wide range of commodities for trading. Here are the types of commodities in the commodity market: 

    1. Agricultural commodities: These include grains (e.g., wheat, chana), oil and oilseeds (e.g., soybeans, mustard seeds), spices (e.g., coriander, turmeric), etc.
    2. Energy commodities: These comprise crude oil and natural gas.
    3. Metal commodities: These are commodities made of metal, such as precious metals (gold, silver), base metals (copper, aluminium), etc.

    Commodity Trading Platforms

    In India, commodity trading is facilitated by various exchanges and platforms. Some of the commodity trading platforms include: 

    • National Commodity & Derivatives Exchange (NCDEX)
    • Multi Commodity Exchange of India (MCX)

    Benefits of Commodity Trading

    Commodity trading offers several benefits, including:

    1. Diversification

    Commodity trading provides access to numerous commodities, which allows traders to spread risks more effectively. They can trade commodities like metals, energy, and agriculture and reduce their reliance on a single sector as these commodities serve as raw materials for multiple sectors of the economy. Commodities are traded all over the globe, which makes them less susceptible to market manipulation. Commodities enable traders to pursue trading opportunities in multiple financial assets and thus limit exposure to a specific financial instrument or sector. 

    2. Hedging

    In commodity trading, hedging guards against unexpected price volatility. Through forward contracts, businesses can fix the cost of their raw materials, helping them maintain consistent financial performance. 

    Hedging helps traders lessen their exposure to unfavorable market movements. This tactic reduces the risk of adverse price fluctuations causing significant losses. 

    3. Liquidity

    Commodity markets are extremely liquid. This allows traders to execute transactions quickly with minimum price impact. High trading volumes ensure that trades are completed without delay. This liquidity makes it simple to buy and sell assets, which is of extreme importance when trading in large quantities. 

    4. Transparency

    The transparency of commodity markets is excellent. The commodity exchanges in India provide an easy-to-use platform and effective trading environment. Real-time price updates guarantee precision and reliability.

    Everybody has access to market data, thereby promoting well-informed decision-making. Transparency reduces the possibility of unfair practices and manipulation. It enables traders to confidently assess conditions and take decisive action.

    Read Also: How to Trade in the Commodity Market?

    Strategies for Successful Commodity Trading

    To succeed in commodity trading, it’s essential to develop a well-defined trading strategy. Here are some strategies to consider:

    • Fundamental analysis: This involves examining the core elements that influence commodity prices, i.e., the supply and demand dynamics, weather conditions, and international events.
    • Technical analysis: Charts and technical indicators can be utilized to recognize patterns and trends in commodity prices and get an idea of future price trends.
    • Risk management: Employ stop-loss orders and position sizing to manage risk and reduce possible losses.
    • Diversification: Engage in trading different commodities and apply a range of trading strategies to avoid concentration risk.

    Conclusion

    Commodities trading through spot transactions and derivative contracts offer a large number of businesses and traders an opportunity to buy, sell and trade commodities. Staying informed about the various types of commodity markets, types of commodities, and trading platforms opens up a lot of trading opportunities. 

    A well-defined trading strategy used with proper risk management can help you capitalize on trading opportunities offered by the commodity market in India. Consult a financial advisor before trading in commodities.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Understanding Commodity Market Analysis
    2What is the Timing for Commodity Market Trading?
    3Risks in Commodity Trading and How to Manage Them
    45 Tips for Successful Commodity Trading
    5Stock Market vs Commodity Market

    Frequently Asked Questions (FAQs)

    1. What are the main types of commodity markets in India?

      India has spot markets for immediate delivery and derivatives markets, including futures, options, and forwards, where commodities are traded as underlying assets of derivative instruments for future delivery.

    2. What types of commodities are traded in India?

      Commodities in India are classified into agricultural (wheat, soybeans, spices), energy (crude oil, natural gas), and metals (gold, silver, copper, aluminium), traded across different commodity exchanges.

    3. How do futures and forward contracts differ in commodity trading?

      Futures contracts are standardized and traded on regulated exchanges, while forward contracts are private, over-the-counter (OTC) agreements with customizable terms between buyers and sellers.

    4. What are the key benefits of commodity trading?

      Commodity trading offers diversification, hedging against price fluctuations, high liquidity, and market transparency, enabling traders to reduce risk and take advantage of price movements.

    5. What strategies can improve success in commodity trading?

      Successful traders use fundamental analysis (supply-demand, weather, global events), technical analysis (charts, indicators), risk management (stop-loss, position sizing), and diversification across multiple commodities and strategies to minimize losses.

  • Understanding Intraday Trading Timings

    Understanding Intraday Trading Timings

    Understanding how to use the intraday trading time effectively can completely change your trading performance. India’s stock markets operate for a fixed time period, and having the knowledge of the timings is crucial for a profitable trading journey. 

    Market operating hours in India have been established to enable traders to plan their trades effectively. Certain time periods during the trading hours have enough liquidity to enable fast-paced execution. 

    Read Also: Difference Between Intraday Trading and Delivery Trading

    Key Trading Hours in India

    The Indian stock market features a pre-opening session and a main trading session. The pre-opening session begins at 9:00 AM and continues briefly till 9:15 AM. This early period prepares the conditions for the entire market day. Most intraday trading occurs during the period following 9:15 AM.

    Let’s discuss the main trading session and the intraday opening and closing times.

    Main Trading Session and Intraday Opening and Closing Time

    • The Indian stock market is open for trading for a specific time period. Intraday Trading operations commence sharply at 9:15 AM and proceed without interruption till 3:30 PM. Most traders schedule their trading activities during these particular times.
    • During the first session, from 9:15 AM until 11:30 AM, trading volumes tend to be high. The market demonstrates elevated volume together with powerful price changes during this period.
    • The trading volume increases further during the post-lunch period. Trading volume remains high throughout the span of 1:00 PM until 3:30 PM.
    • You need to stay attentive throughout the trading day. Each trading segment has distinct characteristics and risks that present unique trading opportunities.

    The official intraday closing time occurs at 3:30 PM. However, based on your broker’s risk management policies, your intraday positions can be squared off five to ten minutes before 3:30 PM. Trading operations cease for the day at 3:30 PM. The majority of traders hurry to close their positions just before the market closing time. 

    Read Also: Bank NIFTY Intraday Options Trading: Steps, Strategies & Tips

    Tips to Locate the Best Time for Intraday Trading

    Many traders ask, How can we know the best time for intraday trading? Your trading strategy determines the best time for intraday trading. 

    1. Markets are Highly Volatile during the Early Hours 

    The market features volatile price fluctuations within the first hour after 9:15 AM. During this time window, traders try to earn substantial profits by capitalizing on substantial price changes. Quick trading decisions in these situations can yield substantial trading profits.

    The mid-session period presents several trading opportunities for traders who base their trading strategy on patterns and technical indicators. The market usually displays noticeable trends within the time frame between 11:30 AM to 1:00 PM. This period is less hectic. This situation allows traders to patiently hold on to profitable trading positions and doesn’t require frequent trading.

    2. Watch the Clock for End of Day Moves

    Before intraday closing time, the market becomes particularly active. Activity in the market rises significantly between 2:30 PM and 3:30 PM, i.e., during the last trading hour. The market conditions during this period offer high liquidity alongside high momentum, which makes it the best time for intraday trading.

    Market news requires your constant observation. Price movements of indices and financial assets are affected when economic reports and corporate financial disclosures are released. News events can cause significant price fluctuations in a short span of time, so you should always stay updated and ready to take advantage of these news events.

    4. Monitor technical indicators

    • Technical analysis using volume, indicators and other tools can help traders identify future market trends.
    • Accurate analysis can provide trading signals for entering or exiting positions in the market. 

    Every trader is unique, and it is essential to identify the trading segments that best suit your trading strategy. Experiment with various time slots to identify the best time for intraday trading. Start with small capital to analyze the market conditions. You will start to discover regular trends that match your trading approach through continuous observation.

    The essential aspect of intraday trading involves maintaining discipline throughout the trading session. You should stick to your trading plan after identifying the most suitable intraday session for consistent profitability. A well-defined trading strategy and risk management systems help you prevent making decisions based on emotions.

    Read Also: Top Indicators Used By Intraday Traders In Scalping

    Practical Examples and Strategies

    1. Real-Life Trading Scenarios

    • While monitoring stock prices, you notice that the market is particularly volatile during the morning session. A trader with a trading strategy focussing on long straddle positions in the options with a 1:3 risk-reward ratio has the potential to earn decent profits during this session.
    • On the other hand, if someone relies on trading patterns, they can wait for the mid-session period as the volatility is lower during this period. Lower volatility reduces the possibility of a false breakout, enabling traders to earn consistent profits.

    2. Simple Strategies for Success

    • The first part of the trading day might bring peaceful conditions. The late session occasionally presents unexpected market conditions. Develop multiple trading strategies for different trading sessions and conditions. Shift from one strategy to another according to what the market currently indicates.
    • The majority of trading platforms deliver real-time market data to their users. Technical indicators and volume data are displayed on these platforms, which helps you decide the best time for intraday trading for your customized trading strategy.

    Read Also: Intraday Trading Rules and New SEBI Regulations

    Conclusion

    To succeed in intraday trading, you need to understand the characteristics of specific hours during the trading session. The blog includes instructions about intraday trading hours along with information about important trading sessions and strategies to determine the best time for intraday trading. Pay constant attention to the intraday closing time to avoid auto-square-off. It is advised to consult a financial advisor before trading. 

    Read Also: How to Choose Stocks for Intraday the Right Way?

    Frequently Asked Questions (FAQs)

    1. What are the official trading hours for intraday trading in India?

      The Indian stock market operates from 9:15 AM to 3:30 PM for intraday trading. However, brokers may square off intraday positions before 3:30 PM, depending on their risk policies.

    2. When is the best time for intraday trading?

      The best time depends on your trading strategy. The first hour after 9:15 AM is highly volatile, making it ideal for quick trades. Mid-session (11:30 AM – 1:00 PM) is calmer and suited for pattern-based trading. The last hour (2:30 PM – 3:30 PM) offers high liquidity and momentum.

    3. Why is the market so volatile in the morning?

      The market is highly volatile during the opening hour due to overnight global market trends, economic news, and corporate announcements. This period experiences large price movements, making it ideal for traders who can react swiftly to price changes.

    4. How does news impact intraday trading?

      News reports, such as economic data releases, corporate earnings, and government policies, can cause sudden price fluctuations. Traders must stay updated to capitalize on market movements triggered by financial disclosures or unexpected global events.

    5. How can technical indicators help in intraday trading?

      Technical indicators like moving averages, RSI, Bollinger Bands, and volume analysis help identify trends and entry/exit points. Traders use these tools to confirm market direction and avoid emotional trading decisions, improving overall profitability.

  • How to Choose Stocks for Intraday the Right Way?

    How to Choose Stocks for Intraday the Right Way?

    Stock market enthusiasts throughout India seek to understand how to choose stocks for intraday trading as part of their elaborate trading strategy. Stock market participants do intraday trading to obtain quick profits by making numerous transactions throughout the day. 

    The correct stock selection stands as the key determinant for trading outcomes. The following article provides essential guidelines together with proven methods to determine optimal stocks for intraday trading.

    Stock Selection for Intraday: What to Look For?

    The objective when picking stocks for intraday trading is to find those with high price volatility. Stocks that display substantial daily price fluctuations make the best choices because they present numerous chances to earn profits. The essential factors mentioned below will help us better understand the process of intraday stock selection.

    1. Liquidity Matters

    A high trading volume generally indicates stocks will have better liquidity. Stocks experience high trading activity due to numerous market participants engaging in frequent transactions. Quick execution of trades combined with the expected execution price is the main benefit of doing intraday trading in liquid stocks.

    • Intraday trading heavily depends on liquidity as an essential element.
    • Stock liquidity describes the ease of trading stock without triggering substantial price alterations.
    • The optimal solution to how to select stock for intraday one day before is to choose stocks with a high average trading volume for the past several days.
    • The quick execution of trades without price slippage becomes possible because of this strategy.

    2. Price Range and Volatility

    • It is vital to choose stocks that exhibit a wide price movement. A stock showing substantial daily price movement creates substantial trading opportunities for traders.
    • The best choice for intraday trading consists of stocks that exhibit high volatility because they demonstrate frequent substantial price movements.
    • Stocks that experience daily price movements exceeding 1% or 2% usually make suitable choices for intraday trading. 

    3. Market Sentiment and News

    • Stock prices undergo significant changes due to news events that occur within the market hours. Intraday traders can take advantage of the short-term price movements due to stock-specific news.
    • The right way to choose stocks for intraday trading is to stay on top of corporate announcements and earnings reports, as well as government policy changes and economic news announcements.

    Read Also: Intraday Trading Rules and New SEBI Regulations

    How to Select Stock for Intraday One Day Before?

    Stock selection for intraday trading should not be delayed until the market opens. The process of stock selection the day before provides you with an advantage and eliminates morning preparation time.

    1. Study the Previous Day’s Performance

    Identify the most liquid stocks from the previous session that showed significant movement. The stock that demonstrates price movement along with high trading volume normally maintains this pattern the following day.

    • You should review stocks that experienced substantial price changes, paying special attention to those stocks that ended near their daily peaks or valleys.
    • The stocks that showed price movement in the previous session, backed by strong trading volumes, usually maintain that same trend into the next trading day.

    When trying to figure out how to pick stocks for intraday, stocks with high trading volume from the previous session should also be examined. Higher stock liquidity allows smooth execution in intraday trades.

    To prepare for intraday trading, it is essential to monitor trends before the market opens. The pre-open session in the Indian financial markets enables investors to get an idea of future stock price movements before the start of regular market hours. The degree of movement in pre-open trading indicates the market momentum that will prevail throughout the day and presents the best answer for how to select stocks for intraday.

    3. Use Stock Screeners

    • Stock screeners operate as efficient tools that let you choose the stocks for intraday trading according to their volume, price movement, and volatility levels.
    • A stock screener lets you quickly filter out stocks suitable for your intraday strategy before the market opens.
    • Your time efficiency improves significantly while you maintain a ready selection of intraday stocks.

    Read Also: Top Indicators Used By Intraday Traders In Scalping

    Choosing Stocks for Intraday: Tools and Techniques

    The process of stock selection for intraday trading needs proper tools combined with analysis techniques to discover optimal trading opportunities. The following list provides proven approaches to stock selection.

    1. Technical Analysis

    Stocks showing defined upward or downward trends make the best targets for intraday trading because their current momentum indicates they will likely continue to follow the trend during the day.

    • The technique requires analysis of charts, which requires traders to use several indicators to forecast future price trends.
    • The most commonly used technical indicators for analysis are moving averages, Relative Strength Index (RSI), and Bollinger Bands.

    2. Sector Performance

    Factors within specific sectors can cause collective movement among stocks that belong to that sector. For example, positive news regarding the banking sector can create favorable market conditions for other banking stocks and cause them to perform better. 

    • Sector performance monitoring allows investors to identify stocks suitable for intraday trading.
    • Traders should read plenty of industry-specific news and economic reports to identify stocks suitable for intraday trading.

    Read Also: Bank NIFTY Intraday Options Trading: Steps, Strategies & Tips

    Conclusion

    The selection of suitable stocks for intraday trading demands traders to focus on market liquidity and volatility together with market sentiment. Pre-open session study, technical analysis, and analyzing stock’s previous day’s performance allow traders to effectively achieve stock selection for intraday trading. 

    The selection process for intraday stocks requires both attention to specific details and time spent practicing these skills. The methods presented in this article will boost your chances of success in the demanding intraday trading environment.

    Frequently Asked Questions (FAQs) 

    1. How do I choose the best stocks for intraday trading?

      Select stocks with high liquidity and significant daily price movements. Monitor market trends, news events, and sector performance to identify the best trading opportunities.

    2. How do I choose the best stocks for intraday trading?

      Liquidity ensures quick trade execution without major price fluctuations. High trading volume stocks allow traders to enter and exit positions efficiently, minimizing slippage and maximizing profits.

    3. How can I pick stocks for intraday trading one day before?

      Analyze the previous day’s performance, identify high-volume stocks, check pre-open market trends, and use stock screeners to shortlist potential stocks for the next trading session.

    4. What tools are useful for intraday stock selection?

      Technical indicators like Moving Averages, RSI, and Bollinger Bands, along with stock screeners and sector performance analysis, help traders identify the best stocks for intraday trading.

    5. How does news impact intraday stock selection?

      Market news, corporate announcements, and government policies trigger price volatility. Tracking financial updates helps traders capitalize on short-term price movements for better intraday stock selection.

  • Tax on Commodity Trading in India

    Tax on Commodity Trading in India

    With the introduction of commodity transaction tax (CTT), commodity trading in India slowly turned a new page, altering how investors speculate in the market. Not only has this tax made trading more expensive, but the nature of the markets has also shifted as well. 

    So, let’s have a look at the effects taxation on commodity trading has on your trading strategy and financial planning.

    Effects of Trading Costs and Market Behavior

    The Commodity Transaction Tax (CTT) in India was introduced on 1 July 2013. This tax on commodity trading was announced during the Budget 2013 by the former Finance Minister P. Chidambaram. This levy is a carbon copy of the Securities Transaction Tax on equities and is created to ensure that there is equality in taxation across different financial securities. You have to pay these charges as a seller of the non-agricultural commodity derivatives.

    Currently, the CTT rate is 0.01%, a seemingly tiny amount. But when trading in high volumes, these small percentages can account for huge amounts. The result of this increase in trading costs has been a tangible impact on the behavior of market participants. Volumes have been dipping noticeably among high-frequency traders and speculators who trade on small profit margins and rely on sheer trading volume.

    Now, each trade costs more, and traders are carrying out fewer but more incisive trades. If this shift continues, it could lead to a less liquid market, which may, in turn, reduce the popularity of commodities trading.

    • Different opinions have emerged about the impact of the CTT on the efficiency of the market. Critics say it may keep small investors and hedgers away from the market, thus upsetting the proper functioning of the market.
    • A few traders have shifted to agricultural commodities that are outside the ambit of CTT. This shift is in line with other emerging trends in trading patterns and calls for a better analysis of the effects of taxes on the trading behavior of market participants.

    Read Also: How to Trade in the Commodity Market?

    Taxation Strategy for Profits

    The CTT is not the only commodity trading income tax. You also need to know how your profits and losses are taxed. Profits from buying and selling derivative contracts of a particular commodity are classified as business income in India, not as capital gains under the Income Tax Act. The classification carries strategic implications. If your commodity trading profits are speculative (i.e., cash-settled derivatives) in nature, then these profits can only be offset against speculative losses. You can’t offset these losses against income from non-speculative trading activities, which involve the delivery of physical commodities at the expiration of the derivatives contract.

    However, non-speculative trading involving the actual delivery of commodities is more flexible. In this case, you can offset speculative and non-speculative profits with losses, offering greater scope for tax planning while trading commodities. Speculative business losses can be carried forward for 4 years, while other non-speculative losses can be carried forward to set off future speculative and non-speculative gains for 8 years.

    Traders playing the long game can use these rules to minimize their commodity trading income tax liability over time. In the event of a year with more losses than gains, this strategy can save you a lot of tax. This only works if traders keep detailed records of their transactions and keep them separate from speculative and non-speculative activities. Beyond aiding tax planning, this also ensures compliance with tax regulations, avoiding penalties for misrepresentation or oversight.

    Regulatory and Fiscal Policy Implications

    The use of CTT was done in line with a fiscal approach concerning taxation of commodity transactions. The tax was launched in 2013 with the view to reduce speculation and, at the same time, increase government revenues. 

    However, the policy has attracted criticism. Critics argue that it hurts the competitiveness of Indian commodity exchanges against global counterparts. 

    This is particularly important given that, unlike many other markets around the world, India levies a higher transactional cost. The trading volumes have been significantly affected by the commodity trading income tax.

    • Market research indicates that India’s commodity trading volume lowered after 2013, which could be a result of CTT. There is still controversy over the issue of reconsidering or eliminating the CTT.
    • Advocates of CTT see it as contributing both to market stability and revenue, while opponents look at its detrimental effect on efficient market functioning. To investors and brokers, it is vital to keep up with regulatory changes.
    • This means that to adapt to current policies, it is not only necessary to respond to change but, more importantly, to anticipate how fiscal change might impact existing trading strategies and the market.

    Market regulations compel market players to consider various techniques and strategies in the management of risk and taxation to break even and avoid violation of the law.

    Read Also: What is Commodity Market in India?

    Conclusion

    The Indian commodity trading landscape witnessed a significant reduction in trading volumes due to the implementation of CTT in 2013. Moreover, the classification of gains and losses as speculative and non-speculative further complicates the taxation procedure. 

    Understanding the taxation treatment of trading profits and losses enables traders to better handle capital gain tax on commodity trading by updating their trading strategies for managing profits and losses. However, it is necessary to consult a financial advisor before trading in commodities.

    Gold Rate in Top Cities of IndiaSilver Rate in Top Cities of India
    Gold rate in AhmedabadSilver rate in Ahmedabad
    Gold rate in AyodhyaSilver rate in Ayodhya
    Gold rate in BangaloreSilver rate in Bangalore
    Gold rate in BhubaneswarSilver rate in Bhubaneswar
    Gold rate in ChandigarhSilver rate in Chandigarh
    Gold rate in ChennaiSilver rate in Chennai
    Gold rate in CoimbatoreSilver rate in Coimbatore
    Gold rate in DelhiSilver rate in Delhi
    Gold rate in HyderabadSilver rate in Hyderabad
    Gold rate in JaipurSilver rate in Jaipur

    Frequently Asked Questions (FAQs)

    1. What is the Commodity Transaction Tax (CTT) in India?

      The Commodity Transaction Tax (CTT) is a tax on non-agricultural commodity derivatives, introduced on July 1, 2013, at 0.01% per transaction.

    2. How are profits from commodity trading taxed in India?

      Profits from commodity trading are classified as business income under the Income Tax Act. Speculative profits (cash-settled trades) are taxed differently from non-speculative profits (delivery-based trades), affecting tax planning strategies.

    3. Can speculative and non-speculative losses be carried forward?

      Yes, speculative losses can be carried forward for 4 years, while non-speculative losses can be carried forward for 8 years. Non-speculative losses can be offset against both types of profits.

    4. How has the introduction of CTT affected commodity trading in India?

      CTT has increased trading costs, leading to lower market liquidity. Many traders shifted to agricultural commodities, which are exempt from CTT, making Indian commodity exchanges less competitive globally.

    5. What should traders consider for better tax planning in commodity trading?

      Traders should maintain records, use loss carryforward rules, and stay updated on tax policies. Consulting a financial advisor helps optimize tax strategies while ensuring compliance with regulations.

  • What is Non-Tax Revenue – Sources and Components

    What is Non-Tax Revenue – Sources and Components

    To finance its activities, the government depends on a variety of revenue streams. One of these significant revenue streams is non-tax revenue. This covers fines, public service fees, and other penalties. The government uses these funds to pay for services and numerous development projects.

    Non tax revenue is smaller than tax revenue. However, it is still significant. Profits from public sector companies are another source of non tax revenue for the government. These revenues fund the government’s operations without relying solely on taxes.

    What is Non-Tax Revenue?

    Non tax revenue is a type of cash inflow the government gets and uses to fund the development of the nation. This is done without collecting taxes. It includes service fees, dividends from public investments, etc. Payments for public services also help generate non-tax revenue. These mainly include things such as electricity, gas, and water. This revenue decreases the reliance on tax collections. 

    For example, when people pay for government services, it is considered non-tax revenue. Dividends from public-sector undertakings and loan interest contribute to this income. Non-tax revenue helps fund government programs and infrastructure. 

    Examples of Non Tax Revenue

    In India, non tax revenue examples include a variety of fees and penalties. For example, paying for services such as a driver’s license or a passport contributes to non-tax revenue. Similarly, payments for public utilities fall into this category. These could be water, electricity, and gas. 

    Fines for late tax payments or traffic violations are another type of non-tax revenue. Income from public-sector companies, such as IRCTC, PNB, SBI, etc., also contributes to this total. Non-tax revenue also includes fees collected for exams such as the UPSC or SSC.

    These resources help the government raise money to fund public initiatives and services. Non-tax revenue is critical for sustaining public services and infrastructure without relying solely on tax revenue.

    Read Also: Mastering Your Finances: Beginner’s Guide To Tax Savings

    Sources of Non-Tax Revenue

    Here are some of the non tax sources of revenue:

    1. Service Fees – Services, including civil registrations, passport issuing, visa processing, and municipal services like waste collection and water supply, are all paid for with fees. 

    2. Interest on Loans – Interest on loans made to states and organizations for infrastructure and other development projects generates revenue. 

    3. Petroleum Licensing and Exploration – Royalties, license fees, and profit-sharing from oil and gas exploration are the sources of revenue. 

    4. Dividends and Profits – The government receives dividends from its investments in public sector undertakings (PSUs) and financial institutions, as well as having an ownership stake in earnings. 

    5. Police and Security Services – By offering security services to businesses and state governments through police units like the CISF, the government generates income. 

    6. Communication Services – Telecom operators pay fees for using the spectrum, which helps fund communication infrastructure.

    7. Road Usage and Tolls – Highway tolls provide revenue that is utilized for the upkeep and enhancement of transportation infrastructure. 

    8. Broadcasting Fees – The government receives money from license fees paid by Direct-To-Home (DTH) providers and commercial TV channels. 

    9. Sale of Commodities – The sale of printed products, such as stationery and official publications, generates revenue for the government. 

    10. Defence Services – Revenue is derived from services provided to defense personnel, including sales from the Canteen Stores Department (CSD). 

    Components of Non-Tax Revenue

    1. Fines and Penalties – Funds collected from individuals or organizations that violate laws or regulations.

    2. Sale of Government Assets – Income derived from the sale of government properties or shares in state-owned firms. 

    3. Interest on Loans – Revenue earned from loans extended to states, union territories, and various entities.

    4. Petroleum License Fees – Charges for obtaining rights to explore oil and gas in designated areas.

    5. Dividends and Profits – Income from state-owned enterprises and surplus transfers from the Reserve Bank of India.

    6. Communication Services Fees – Fees paid by telecom operators for using spectrum or other related services.

    7. Power Supply Fees – Bill payments received by the central electricity generation authority for providing power supply.

    8. Broadcasting Fees – Income from radio and television operators as well as other broadcasting services.

    9. Road and Bridge Usage Fees – Revenue from tolls for using national highways, roads, and bridges.

    8. Administrative Service Fees – Income from services like passport and visa issuance, auditing, and more.

    9. Sale of Stationery and Publications – Revenue is generated by the selling of official publications, stationery, and government gazettes. 

    Difference Between Tax Revenue and Non-Tax Revenue

    There is a big difference between tax and non tax revenue. Here’s a table for the same:

    Tax RevenueNon-Tax Revenue
    Source: Collected through compulsory payments. E.g., income tax, corporate tax, and sales tax. Source: Collected through voluntary transactions or government-owned entities.
    Stability: Typically a more stable and predictable source of income. This is mainly because taxes are systematically collected.Stability: Can fluctuate significantly. This is because it is based on government policies, economic cycles, or other actions.
    Volume: Forms the largest portion of government income. This makes up a significant part of the national budget.Volume: Represents a smaller, but still important, portion of total revenue.
    Impact: Often leads to a direct burden on businesses and individuals.Impact: Less reliant on public participation. Due to this, it can be more flexible.

    Role of Non-Tax Revenue in Economy

    Non-tax revenue constitutes an important share of a country’s economic system. This is especially true in countries with large public sectors or state-owned enterprises. 

    Such revenue provides flexibility to governments when reducing the tax burden. This is done while raising funds for some of the important infrastructure projects. Here are the ways non-tax revenue contributes to the economy:

    1. Reducing Dependence on Taxes

    Non-tax revenue helps reduce dependence on taxes. These can be burdensome for businesses and individuals. With this, non-tax revenue thereby encourages economic growth.

    2. Funding Public Infrastructure and Services 

    Non-tax revenues are often used to fund significant infrastructure projects. The main examples include roads, schools, and hospitals.

    3. Supporting Fiscal Stability

    Non-tax revenue supports the stability of government finances. This is specifically for economic uncertainty or recession. For example, during a downturn, a sale of a state-owned enterprise can fill the budget deficits.

    Read Also: Types Of Taxes In India: Direct Tax And Indirect Tax

    Conclusion

    Now, you must have understood that when non tax revenue is used to finance government initiatives and services, the need for taxes becomes less important. During difficult times, non-tax revenue maintains economic stability and supports public endeavors. 

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    5What is Profit After Tax & How to Calculate It?

    Frequently Asked Questions (FAQs)

    1. What is non-tax revenue?

      Non-tax revenue is the income that the government earns from sources other than taxes, such as service fees, fines, dividends from public-sector companies, and interest on loans. It helps fund public services and infrastructure projects without increasing the tax burden.

    2. How does non-tax revenue differ from tax revenue?

      Tax revenue is collected through mandatory payments like income tax, sales tax, and corporate tax, while non-tax revenue comes from voluntary payments from tolls, service charges, and profits from public enterprises.

    3. What are some examples of non-tax revenue in India?

      Examples include fees for passports and driver’s licenses, tolls on highways, dividends from state-owned companies like SBI and IRCTC, fines for traffic violations, and payments for utilities such as electricity and water.

    4. Why is non-tax revenue important for the economy?

      Non-tax revenue reduces dependence on taxation, provides additional funds for infrastructure and public services, and ensures financial stability, especially during economic downturns.

    5. What are the key sources of non-tax revenue?

      Major sources include service fees, interest on government loans, petroleum licensing fees, dividends from public enterprises, toll charges, broadcasting fees, and administrative charges for government services.

  • Joint Demat Account: Meaning, Features, Benefits, and Steps

    Joint Demat Account: Meaning, Features, Benefits, and Steps

    A Demat account is an absolute must-have for holding shares and securities traded in the financial markets. Research shows that in 2024, there were 46 million more demat accounts. 

    In addition to this, people are now opting for a joint demat account. This allows multiple individuals to jointly hold and manage investments stored in a single demat account. 

    You can open a Demat account online. This reduces the ownership structure’s complexity and opens up more possibilities for families, business partners, or spouses wanting to pool together their investments.

    What is a Joint Demat Account?

    A joint demat account can be defined as an account that allows two or more individuals to jointly hold and manage securities. A joint bank account functions similarly by giving the account ownership of shares to several holders. 

    A joint Demat account can have up to three account holders. This includes one primary and two joint holders. The primary account holder is responsible for the account. Although the primary account holder is responsible for the account, all demat account joint holders have equal rights in managing the investments.

    Prominent Features and Benefits of a Joint Demat Account

    Some of the most common features and benefits of a joint demat account include:

    1. Pooling Resources

    Joint account holders can pool their funds and make shared investments with a joint demat account. This helps increase the overall investment amount, allowing joint holders to invest more effectively.

    2. Reduced Maintenance Fees

    A joint demat account allows everyone to split the maintenance costs. This reduces overall fees. This makes it an economical choice for those looking to manage investments together. Sharing these expenditures is much cheaper than keeping separate accounts for each member. 

    3. Smooth Estate Transfer

    If one of the demat account joint holders dies, the surviving holder(s) will immediately take over the account. This simplifies and expedites the process of transferring assets. It eliminates the need for complex legal formalities. 

    Who Can Open a Joint Demat Account? 

    Joint demat accounts can be opened for anyone fulfilling depository participant (DP) criteria. Joint demat accounts can be opened by the following individuals:

    • Residents of India above 18 years of age.
    • NRIs that comply with applicable regulations.

    The holders can be unrelated to each other: business partners, friends, family members, etc., can co-own a joint demat account. However, all holders must conform to KYC norms.

    Documents Required for Opening a Joint Demat Account

    When you open joint demat account online, it requires the following documents:

    1. PAN Card: A copy of the PAN card for each account holder.
    2. Photographs: Recent passport-size photos of all account holders.
    3. Proof of Identity: Documents like an Aadhaar card, Voter ID, passport, or driver’s license.
    4. Proof of Address: Documents such as an Aadhaar card, utility bill, or passport to verify the address.
    5. Bank Account Proof: A cancelled cheque or a recent bank statement of the primary account holder.
    6. Income Proof: A salary slip, bank statement, or income tax return acknowledgement.

    Read Also: Documents Required to Open a Demat Account

    Steps to Open a Joint Demat Account

    Here are the steps to open a joint demat account:

    Steps to Open a Joint Demat Account

    1. Choose a Depository Participant (DP)

    Select a Depository Participant (DP) that is registered with the NSDL or CDSL.

    2. Fill Out the Application Form

    You can get the joint demat account opening form from the DP’s website. All account holders are required to disclose their information. Verify the accuracy of all the information.

    3. Attach Required Documents

    Upload scanned copies of the identity proofs, address proofs, bank proofs, and photographs of all the holders. These should all be self-attested by the holders concerned.

    4. Complete KYC Formalities

    All holders should submit KYC forms and complete in-person verification if needed.

    5. Submit the Application

    Submit the application and the documents in their complete form on the DP’s website.

    6. Verification and Approval

    After verifying the details submitted, the DP shares the login details and authorizes it. 

    Points to Consider Before Opening a Joint Demat Account

    Here are the key joint demat account rules to consider before opening an account:

    1. Approval of All Account Holders

    Transactions in a joint demat account require approval from each account holder. The transaction is invalid if full consent is not obtained. This guarantees that everyone is aware of the activities occurring within the account. 

    2. No Changes to Account Holder Details

    Once the joint demat account is opened, you cannot change details such as names or birth dates. If there is an error, you will have to create a new account. To avoid future account issues, make sure to double-check all information before applying. 

    3. Tax Responsibility

    In a joint demat account, the primary account holder is liable for paying capital gains taxes. Despite the fact that there are several account holders, the principal holder is responsible for paying taxes. 

    4. One Trading Account Only

    Only one trading account is connected to the joint demat account. This is usually held by the principal account holder. This main holder is the recipient of all messages pertaining to the account. This implies that they are in charge of overseeing the account. They also get information about all the activities occurring within the account.

    5. Account Changes after Opening

    You cannot convert an individual Demat account into a joint one. To open a joint account, you must apply from the start.

    Read Also: How to Open a Demat Account Online?

    Conclusion

    By now, you must have understood how to open joint demat account. Understanding the principles and techniques can help you maximize your money. It’s an excellent choice for anyone wishing to invest jointly.

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    1Features and Benefits of Demat Account
    2Lifetime Free Demat Account (AMC Free)
    3How Do You Open a Demat Account Without a Broker?
    4Demat Account Charges Comparison 2025
    5Types of Demat Accounts in India

    Frequently Asked Questions (FAQs)

    1. Can I add or remove joint holders after opening a joint Demat account?

      No, once a joint Demat account is opened, you cannot add or remove joint holders. If any changes are required, you will have to close the existing account and open a new one.

    2. Is it possible to convert an individual Demat account into a joint Demat account?

      No, an individual Demat account cannot be converted into a joint Demat account. You must apply separately for a joint account from the beginning.

    3. Who is responsible for taxation in a joint Demat account?

      The primary account holder is responsible for paying capital gains tax, even though the account has multiple holders. Tax liabilities are calculated based on the transactions made in the account.

    4. Can all joint account holders access the trading account linked to the joint Demat account?

      No, only the primary account holder has access to the trading account linked to the joint Demat account. The principal holder also receives all transaction-related notifications.

    5. What happens to a joint Demat account if one of the account holders passes away?

      In case of the demise of one of the joint holders, the surviving holder(s) continue to manage the account. The account is seamlessly transferred without complex legal formalities.

  • Top 10 Cable Stocks in India

    Top 10 Cable Stocks in India

    The Indian wires and cables industry rides on growth in real estate, infrastructure, renewable energy, and telecommunications. Hence, there is a huge opportunity for the investors looking for some reliable stocks with proven performance. The top 10 cable stocks in India can be a valuable addition to your portfolio in terms of both capital appreciation and diversification.  

    This blog is meant to discuss major cable companies according to market capitalization.

    Overview of the Industry

    The Indian cable and wire industry is set for a boom over the next decade, growing at an 11% rate annually to reach a size of ₹1,200 billion by 2030. The speedy developments of urbanization, government infrastructure programs such as smart cities, and the aggressive push toward digitization all contribute to the growth in developing economies.

    The industry has witnessed some remarkable milestones within the organizations, together with extremely impressive and active financials and product innovations. Here’s a detailed examination of the best cable stocks in India and why one should watch them.

    Market Information of Cable Stocks

    CompanyCurrent Market Price(in ₹)Market Capitalization(in ₹ Crores)52-Week High (in ₹)52-Week Low (in ₹)
    Polycab India Ltd.5,66685,2257,6074,278
    KEI Industries Ltd.3,48433,2895,0402,884
    Finolex Cables Ltd.89013,6121,700831
    RR Kabel Ltd.1,14412,9591,9031,118
    Diamond Power Infrastructure Ltd.91.24,83619428.4
    Sterlite Technologies Ltd.1004,88915595.2
    Universal Cables Ltd.5661,964939380
    Paramount Communications Ltd.61.21,86610159.7
    Dynamic Cables Ltd.7251,7561,095337
    V-Marc India Ltd.31075749469.6
    (Data as of 12 February 2025)

    Overview of the 10 Best Cable Stocks in India 

    1. Polycab India Ltd

    About:

    Initiated way back in 1968, Polycab India Ltd is currently India’s largest wire and cable manufacturer. It’s created a huge name in the industry by having products ranging from cables to fibre optics.

    Key Milestones:

    IPO of Polycab in 2019 is considered a huge success as it raised around ₹1,345 Crores.

    The company crossed ₹10,000 crore revenue landmark in 2020 due to its high-quality products.

    Diversification into fast-moving electrical goods (FMEG) with fans, lights, and switches.

    Growth drivers:

    Strategically equipped with a broad product portfolio, innovation in product development within Polycab has made it a credible choice among various cable share lists. Adding to all the prime hype building points is its strong financial performance coupled with a good exposure to exports, thus making it a potential investor interest.

    Y Return (%)3Y Return (%)5Y Return (%)
    31.33%151.18%437.37%
    (Data as of 12 February 2025)

    2. KEI Industries Ltd

    About:

    Founded in 1968, KEI Industries Ltd is one of the prominent and leading manufacturers of power cables, house wires and stainless steel wires in India.

    Key Acquisitions and Milestones:

    In 2010, they teamed up with Brugg Cables of Switzerland to introduce EHV cables.

    Acquired contracts for many renovations from the government in the light of railway electrification and renewable energy.

    By 2022, the company had also successfully achieved the around ₹6,908.17 crores revenue threshold.

    During the FY 2023-24, the company achieved a turnover of ₹8,104.08 Cr.

    Growth Drivers:

    The strong industrial and infrastructural presence of KEI renders it a preferred stock for long-term investors.

    Y Return (%)3Y Return (%)5Y Return (%)
    4.36%258.27%555.34%
    (Data as of 12 February 2025)

    3. Finolex Cables Ltd

    About:

    Finolex Cables is one of India’s oldest companies, founded in 1958 as manufacturers of electrical and communication cables to serve a variety of industries, including telecommunications and automotive sectors.

    Key Mile Stones:

    Created the first jelly-filled telecom cables in the year 1998, which revolutionized the very core of the telecom industry.

    Expanded to include electric and automobile cables in the PVC insulation during the year 2000.

    Have been able to demonstrate robust financial performance wherein revenues are estimated to stand at ₹3,900 crores in 2023.

    Growth Drivers:

    Finolex is focusing on quality and innovation, which is going to guarantee its stranglehold over the Indian cable market.

    Y Return (%)3Y Return (%)5Y Return (%)
    -16.53%91.32%125.22%
    (Data as of 12 February 2025)

    4. RR Kabel Ltd

    About:

    RR Kabel was established in 1999 and is known for innovating and introducing eco-friendly products. It deals with industrial and household cables, too.

    Key Milestones:

    Very first Indian cable firm to have green wires certified in environment sustainability.

    IPO: 2023, which raised another ₹1,964 crores to further strengthen its financial position.

    Associates with few of the major developers in the real estate sectors for the development of the projects of urban infrastructures.

    Growth Drivers:

    Being one of the best cable stocks in India because of focusing towards green solutions as well as products of premium quality.

    Y Return (%)3Y Return (%)5Y Return (%)
    -20.88%-2.12%-2.12%
    (Data as of 12 February 2025)

    5. Diamond Power Infrastructure Ltd

    About: 

    Diamond Power Infrastructure Ltd was established in 1970 with the purpose of manufacturing power cables and conductors for the utility and energy sectors.

    Key Milestones:

    2007 – Opened the country’s first fully integrated conductor and cable manufacturing facility. This brought the company competitive advantage and diversified sources of income.

    Mainly associated with major contracts for crucial works in state electricity board projects.

    Growth Drivers:

    Growing Sectors that Acquired Capacity by the strength in power and innovative focus will suffice growth potential.

    Y Return (%)3Y Return (%)5Y Return (%)
    217.51%50,877.78%1,66,736.36%
    (Data as of 12 February 2025)

    6. Sterlite Technologies Ltd

    About : 

    Sterlite Technologies Ltd is a global leader in optical fibre cables and digital network solutions. Founded in 2000.

    Key milestones:

    Acquired Elitecore Technologies as a software and digital enhancement in 2015.

    Partnerships with telecom operators set up in 2021 to enable the rollout of the 5G services in India.

    The footprint has expanded globally, and a large chunk of the revenue is through exports.

    Growth Drivers:

    Sterlite tops the list of cable share for the industry, remains at the leadership position in the telecom sector, and keeps its eye on future-ready technologies.

    Y Return (%)3Y Return (%)5Y Return (%)
    -27.57%-51.24%-19.09%
    (Data as of 12 February 2025)

    7. Universal Cables Ltd

    About:

    Universal Cables was established in 1962 in association with the MP Birla Group and is concerned only with power and special types of cables.

    Key Milestones:

    In 2009, the company collaborated with Japan’s Furukawa Electric Industries to form a joint venture for the manufacture of optical fiber cable in India.

    The company supplied cables for metro rail and high-speed rail projects in India.

    The company had revenues of ₹1,800 crores solely from the solid order book in the year 2023.

    Growth Drivers:

    With strategic partnerships and high-quality products, Universal Cables is rightly placed as one of the top contenders among the top 10 cable stocks in India.

    Y Return (%)3Y Return (%)5Y Return (%)
    14.42%244.50%250.81%
    (Data as of 12 February 2025)

    8. Paramount Communications Ltd

    First founded in 1955, this has been a company involved in manufacturing power and telecom cables. Paramount Communications Ltd designs products to serve both government and private sectors.

    Key Milestones:

    Helped in the supply of cables for the Delhi metro project.

    Expand to the European markets, adding export revenues.

    It is developing growth steadily depending on contracts in the defense and aerospace markets.

    Growth Drivers:

    Niche expertise of paramount brings a positive outlook in future investments.

    Y Return (%)3Y Return (%)5Y Return (%)
    -37.29%375.10%730.61%
    (Data as of 12 February 2025)

    9. Dynamic Cables Ltd

    About:

    Dynamic Cables is a company that was founded in 2007 and is focused on the manufacturing and supply of various cables for power transmission, distribution, and projects in the renewable energy sector.

    Key Milestones:

    Enlarging the capacity of production dramatically increased the output in 2018.

    Top supplier for solar power in India.

    Constant and sustainable growth in financials due to strong domestic and international demand.

    Growth Drivers:

    Dynamic Cables is all aligned to the green targets set for India, which promise a future avenue for further growth.

    Y Return (%)3Y Return (%)5Y Return (%)
    64.07%406.96%406.96%
    (Data as of 12 February 2025)

    10. V-Marc India Ltd

    About:

    V-Marc India was set up over forty years ago, in 1971, especially to manufacture industrial and power cables.

    Key Milestones: 

    Started with control and instrumentation cables as part of its portfolio in 2015.

    Started cooperating with global distributors to further its global reach.

    Has registered a CAGR of 20% revenue over the last five years.

    Growth Drivers:

    V-MArc has innovation and a strong export network making it a reliable share market player in the wire company share market.

    Y Return (%)3Y Return (%)5Y Return (%)
    78.16%638.10%566.67%
    (Data as of 12 February 2025)

    Read Also: 10 Best Copper Stocks in India

    Key Metrics for Comparison 

    From fibre-optic to electrical cables, they form the backbone of India’s infrastructure. Here are the top cable sector stocks to look out for:

    CompanyNet Profit Margin (%)RoE(%)ROCE(%)D/EEV/EBITDA
    Polycab India Ltd.9.9921.7929.020.0127.96
    KEI Industries Ltd.7.1618.4425.580.0434.53
    Finolex Cables Ltd.10.0813.1713.580.0020.40
    RR Kabel Ltd.4.5016.2823.800.1633.45
    Diamond Power Infrastructure Ltd.4.95-1.741.73-0.3267.97
    Sterlite Technologies Ltd.-1.11-2.529.261.5911.57
    Universal Cables Ltd.1.696.096.940.4312.63
    Paramount Communications Ltd.8.1513.7113.660.1621.98
    Dynamic Cables Ltd.4.9117.6532.260.5611.22
    V-Marc India Ltd.4.7525.2034.451.325.24
    (Data as of 12 February 2025)

    Why Invest in Cable Stocks?

    The development of this lucrative sector should be promoted in the following ways:

    • Government Initiatives: Initiatives such as smart cities, metro rail, and rural electrification would increase demand for wires and cables.
    • 5G: Telecom expansion has taken a new dimension with the healthcare sector.
    • Renewable Energy: Power cables are heavily demanded in renewable solar and wind energy projects.

    Advantages and disadvantages of investing in cable stocks

    Advantages

    • High Growth Potential: Due to infrastructure development and digitization, the industry has enormous growth potential.
    • Diversified Applications: Be it real estate, telecom, or energy, cables are unavoidable .
    • Dividend Potential: Established companies such as Polycab and KEI generally provide dividends.

    Disadvantages

    • Capital-Intensive: The industry involves substantial investment in machinery and technology.
    • Cyclicality: Demand tends to fluctuate with the economy
    • Competition: Both domestic and foreign players amplify market competition.

    Future of Cable Industry in India

    The Indian cable industry has prospects for massive growth, as below:

    1. Urbanization: More population in cities drives the demand for modern infrastructure.
    2. 5G rollout: Huge opportunities for Optical Fiber Cables are being presented due to the expansions of Telecom industries.
    3. Renewable Energy: Solar and Wind energy projects call for special Power Cables.
    4. Industrial Development: Emerging Industrial Requirements will be shaped in light of Automation, Robotics and IT Infrastructure.
    5. Exports: Cable Qualities along with costs can open opportunities to export the Indian material everywhere around the world.
    6. Sustainable Solution: Ecofriendly Materials and practices guarantee future use and applicability.
    7. Techno innovations: They are IoT Enabled Fire Resistance Cables thereby catering to newer demands.
    8. Investment in R&D: These generate avenues for the new growth of advanced technology and customized techniques.

    The sustainability approach and product innovations ensure the survival of the Industry in the Long Run.

    Read Also: Best Gaming Stocks in India

    Conclusion

    This unique opportunity in investing makes for the best cable stocks in India where investment can be done for companies with high growth drivers, infrastructure development, digital transformation, and extension of renewable energy. Although Polycab India, KEI Industries, and Finolex Cables have continued to perform, some new companies, such as RR Kabel and Dynamic Cables, show tremendous potential for growth.

    Investing in these stocks lets you gain exposure to the growing Indian cables industry. Be it for a long or short period, dividends can be expected from these top 10 cable stocks in India, which can also be a strong part of a balanced portfolio.

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    FAQs

    1. Which are the best cable stocks in India for long-term investment?

      The best stock in the cables sector is Polycab India, KEI Industries, and Finolex Cables as they have robust fundamentals.

    2. What is the cable share price of Polycab India?

      The cable share price of Polycab India as of 12 February 2024 is about ₹5,666.

    3. How do I analyze the top 10 cable stocks in India?

      Analyze market cap, revenue growth, historical performance, and industry trends before making any investment decision.

    4. What are the growth drivers for the share market of the wire company?

      Main growth drivers will be urbanization, 5G rollout, and renewable energy projects.

    5. How to get the updated cable share list?

      You can refer to the latest lists on the financial platforms, such as NSE, BSE, or stock market applications.

  • शेयर मार्केट कैसे सीखें 2025 में (Step-by-Step Guide)

    शेयर मार्केट कैसे सीखें 2025 में (Step-by-Step Guide)

    यदि आप अपनी संपत्ति बढ़ाना चाहते हैं और समय के साथ अपने भविष्य को आर्थिक रूप से और बेहतर बनाना चाहते हैं तो आपको पैसों को सही ढंग से निवेश करना होगा। आजकल की बढ़ती महंगाई और एक अच्छी जीवनशैली के लिए यह ज़रूरी है कि आप केवल सेविंग्स और उसपे मिल रहे ब्याज पर निर्भर न करें। ऐसे में शेयर बाज़ार में निवेश करना आपके लिए एक उत्तम उपाय हो सकता है। 

    हालाँकि, शेयर बाज़ार में प्रवेश करने से पहले आपको इससे जुड़ी सभी मूलभूत बातों से अवगत होना चाहिए। यदि आप शेयर मार्किट या शेयर बाज़ार से जुड़े बेसिक्स को समझना चाहते हैं तो यह ब्लॉग आपके लिए ही है। तो आइये जानने का प्रयास करते हैं कि शेयर बाज़ार क्या है और आप यहाँ कैसे निवेश कर पैसे बना सकते हैं।

    शेयर मार्केट क्या है?

    शेयर बाज़ार वह स्थान है जहाँ कंपनियों के शेयर ख़रीदे और बेचे जाते हैं। जब कोई कंपनी अपने शेयर जारी करती है, तो निवेशक उन्हें ख़रीद सकते हैं और कंपनी के प्रदर्शन के अनुसार लाभ प्राप्त कर सकते हैं। आसान तौर पर, बाज़ार में लिस्टेड किसी कंपनी के शेयर आप ख़रीदते हैं, और जब कंपनी बेहतर परफॉर्म करती है तो उसके शेयर की वैल्यू बढ़ती है। इसके फलस्वरूप आपके निवेशित पैसों की भी वृद्धि होती है।

    शेयर बाज़ार को दो प्रमुख सेगमेंट में बांटा जाता है:

    1. प्राइमरी मार्केट – जहाँ कंपनियाँ पहली बार अपने शेयर जारी करती हैं (IPO – Initial Public Offering के माध्यम से)।
    2. सेकेंडरी मार्केट – जहाँ निवेशक पहले से जारी शेयरों की ख़रीद-फरोख्त करते हैं।

    शेयर मार्केट क्यों सीखें?

    शेयर बाज़ार में निवेश करने से आपको अच्छा रिटर्न, वित्तीय स्वतंत्रता, और दीर्घकालिक संपत्ति निर्माण में मदद मिल सकती है। साथ ही, यह अन्य निवेश विकल्पों जैसे कि फिक्स्ड डिपॉजिट या गोल्ड की तुलना में बेहतर रिटर्न प्रदान कर सकता है।

    इसके कुछ प्रमुख लाभ हैं:

    • लंबी अवधि में धन वृद्धि – अच्छे स्टॉक्स में निवेश से समय के साथ अच्छा मुनाफा हो सकता है।
    • महंगाई को मात देने का तरीका – शेयर बाज़ार में सही निवेश से मुद्रास्फीति की दर से अधिक रिटर्न प्राप्त किया जा सकता है।
    • डिविडेंड और बोनस शेयर का लाभ – कई कंपनियाँ अपने निवेशकों को नियमित रूप से डिविडेंड या बोनस शेयर देती हैं।
    • कम पूँजी में निवेश का अवसर – शेयर बाज़ार में कम राशि से भी शुरुआत की जा सकती है।

    शेयर बाज़ार कैसे सीखें? (10 स्टेप्स में शेयर बाज़ार सीखने की प्रक्रिया)

    1. बेसिक जानकारी हासिल करें

    • शेयर बाज़ार, इंडेक्स (Sensex, Nifty), और विभिन्न प्रकार के शेयरों (Large-cap, Mid-cap, Small-cap) की जानकारी लें।
    • SEBI (Securities and Exchange Board of India) के नियमों को समझें।
    • स्टॉक्स, डेरिवेटिव्स, म्यूचुअल फंड्स, और ETF (Exchange Traded Funds) की जानकारी लें।

    2. फाइनेंशियल न्यूज़ और बुक्स पढ़ें

    • बिजनेस वेबसाइट्स पर अपडेट देखें।
    • महत्वपूर्ण किताबें:
      • The Intelligent Investor – बेंजामिन ग्रैहम
      • One Up on Wall Street – पीटर लिंच
      • Rich Dad Poor Dad – रॉबर्ट कियोसाकी

    3. डेमैट और ट्रेडिंग अकाउंट खोलें

    • किसी अच्छे स्टॉक ब्रोकर के साथ Demat और Trading Account खोलें।
    • यह खाता शेयर ख़रीदने और बेचने के लिए आवश्यक होता है।
    • ब्रोकर चार्जेस, एएमसी (वार्षिक मेंटेनेंस शुल्क) और ट्रांजेक्शन फीस की तुलना करें।

    4. शेयर बाज़ार की बुनियादी रणनीतियाँ सीखें

    • लॉन्ग-टर्म इन्वेस्टमेंट: मजबूत कंपनियों के शेयर लंबे समय तक रखने पर ध्यान दें। इससे आप मार्किट के उतार-चढ़ाव के प्रभाव को कम कर सकते हैं और लम्बे समय तक इनवेस्टेड रहने के कारण कम्पाउंडिंग से आपको अधिक फायदा होता है।
    • इंट्राडे ट्रेडिंग: एक ही दिन में शेयर ख़रीदने और बेचने की प्रक्रिया।
    • स्विंग ट्रेडिंग: कुछ दिनों या हफ्तों के लिए निवेश करना।
    • डिविडेंड इन्वेस्टमेंट: उन कंपनियों में निवेश करना जो नियमित रूप से डिविडेंड देती हैं।

    5. IPO और FPO की जानकारी लें

    • IPO (Initial Public Offering) और FPO (Follow-on Public Offering) में अंतर को समझें।
    • नए आईपीओ में निवेश से पहले उनके फाइनेंशियल स्टेटमेंट और बिजनेस मॉडल को विश्लेषण करें।
    • शेयर बाज़ार में FPO vs IPO के बीच अंतर को समझना आवश्यक है।

    6. स्टॉक्स के फंडामेंटल और टेक्निकल एनालिसिस सीखें

    • फंडामेंटल एनालिसिस: कंपनी के बैलेंस शीट, प्रॉफिट एंड लॉस स्टेटमेंट, P/E रेश्यो को देखें।
    • टेक्निकल एनालिसिस: चार्ट, ट्रेंड्स, और इंडिकेटर्स (Moving Averages, RSI) को समझें।

    7. पेपर ट्रेडिंग करें

    • यदि आप ट्रेडिंग में रूचि रखते हैं तो बेहतर होगा कि आप मुख्यधारा में प्रवेश से पहले थोड़ी तयारी करें। स्टॉक मार्किट में आर्थिक रिस्क भी होता है इसलिए पहले आप वर्चुअल ट्रेडिंग के ज़रिये अनुभव प्राप्त करें और फिर वास्तविक निवेश प्रारम्भ करें।

    8. जोखिम प्रबंधन (Risk Management) पर ध्यान दें

    • एक ही स्टॉक में सारा पैसा न लगाएँ।
    • स्टॉप लॉस और पोर्टफोलियो डाइवर्सिफिकेशन का पालन करें।

    9. शेयर मार्केट में मनोवैज्ञानिक पहलुओं को समझें

    • लालच और डर को नियंत्रण में रखें।
    • भावनात्मक निर्णय लेने से बचें।

    10. लगातार सीखते रहें

    • नए इन्वेस्टमेंट टूल्स और मार्केट ट्रेंड्स के बारे में अपडेट रहें।
    • अनुभवी निवेशकों और विशेषज्ञों से सीखें।

    नए निवेशकों द्वारा की गई 7 ग़लतियाँ

    1. बिना रिसर्च के निवेश करना: बिना जानकारी के निवेश करना और बाज़ार को समझे बिना पैसे लगा देना अंततः एक घाटे का सौदा बनता है।
    2. जल्दी अमीर बनने की सोच रखना: अक्सर देखा जाता है कि लोग शेयर बाज़ार को एक जुए की भांति देखने लगते हैं और जल्दी से अमीर बनने के चक्कर में अपने पैसे गँवा बैठते हैं।
    3. सिर्फ टिप्स और अफवाहों के आधार पर निवेश करना: यह भी अक्सर देखा जाता है कि नए निवेशक टिप्स और अफवाहों पर ज़्यादा ध्यान दे देते हैं जबकि रिसर्च और मार्किट की एजुकेशन को नज़रअंदाज़ कर जाते हैं।
    4. जोखिम प्रबंधन (Risk Management) की अनदेखी करना: जैसा कि पहले ही बताया गया है कि शेयर मार्किट बाज़ार जोखिमों से रिक्त नहीं है इसलिए निवेश के साथ-साथ रिस्क का प्रबंधन भी आवश्यक है।
    5. अपने सभी पैसे एक ही स्टॉक में लगाना: एक ही शेयर में पूरा निवेश केंद्रित कर देने से रिस्क बहोत बढ़ जाता है। यदि कंपनी अच्छा परफॉर्म नहीं करती है तो ऐसे में निवेशक के पैसे डूब भी सकते हैं।
    6. बाजार के उतार-चढ़ाव से घबरा जाना: बाज़ार में उतार-चढ़ाव अवश्यम्भावी है, इसलिए लम्बे समय तक बने रहने वाले निवेशक ही बढ़िया रिटर्न बनाते हैं। जबकि नए निवेशकों में यह देखा जाता है कि वो वोलैटिलिटी से घबरा जाते हैं और तुरंत ही बाज़ार से निकास ले लेते हैं।
    7. धैर्य न रखना और जल्दबाजी में निर्णय लेना: शेयर बाज़ार में निवेश करना बहोत ही धैर्य और समझदारी का विषय है। जल्दबाज़ी में लिए हुए फैसले अक्सर नुक्सान करते हैं।

    2025 में शेयर मार्केट सीखने के लाभ

    • डिजिटल निवेश प्लेटफॉर्म्स की उपलब्धता 
    • कम लागत पर ऑनलाइन कोर्सेस और वेबिनार्स।
    • AI-बेस्ड एनालिसिस टूल्स जो इन्वेस्टमेंट निर्णयों में मदद करते हैं।
    • फाइनेंशियल लिटरेसी का बढ़ता स्तर।

    निष्कर्ष

    इस नए दौर में बेहतर संपत्ति बनाने और आर्थिक रूप से अपने भविष्य को सशक्त करने के लिए शेयर बाज़ार में निवेश करना महत्वपूर्ण भी है और लाभकारी भी। यह एक ऐसा प्लेटफार्म है जहाँ आप बेहतर रिटर्न कमा सकते हैं और अपने सपनों को पूरा कर सकते हैं। लेकिन इसके साथ ही यह भी महत्वपूर्ण है कि आप शेयर बाज़ार से जुड़े सभी प्रमुख बातों को ठीक तरह से समझ लें। ब्लॉग में वर्णित स्टेप्स को आप ठीक प्रकार से अध्ययन करें और संभावित ग़लतियों से बचें। एक प्रबल रणनीति के साथ आप अपने और अपने परिवार के भविष्य को उज्जवल बना सकते हैं।

    अक्सर पूछे जाने वाले सवाल (FAQs)

    1. क्या शेयर मार्केट में पैसा लगाना सही है?

      हाँ, यदि आप सही रणनीति और रिसर्च के साथ निवेश करें तो यह अच्छा रिटर्न दे सकता है।

    2. शेयर मार्केट में पैसा कब लगाना चाहिए?

      जब बाज़ार स्थिर हो और आपको स्टॉक्स के बारे में पूरी जानकारी हो।

    3. शेयर मार्केट में कितना पैसा लगा सकते हैं?

      आप अपनी वित्तीय स्थिति और जोखिम उठाने की क्षमता के अनुसार शुरुआत कर सकते हैं।

    4. मैं फ्री में शेयर बाज़ार कैसे सीख सकता हूं?

      यूट्यूब, ऑनलाइन कोर्सेज, और डेमो ट्रेडिंग प्लेटफॉर्म्स की मदद से।

    5. क्या मैं खुद से ऑनलाइन शेयर मार्केट सीख सकता हूं?

      हाँ, कई ऑनलाइन संसाधन उपलब्ध हैं जहाँ से आप स्वयं सीख सकते हैं और अभ्यास कर सकते हैं।

  • How to Find Winning Penny Stocks? Step by Step Guide

    How to Find Winning Penny Stocks? Step by Step Guide

    Penny stocks are full of potential. However, they have their own downsides. Though they are cheap, you can never predict them. Prices can grow in one day and then crash the next. 

    That’s why people often see them as a double-edged sword. This means high reward coupled with high risk.  

    The big question is how to pick penny stocks and avoid the dip. That’s where this guide comes in. So, let’s begin!

    What are Penny Stocks?

    Penny stocks are shares of small companies that trade at a very low price, usually under ₹10 per share. They also have very low market capitalizations and generally low trading volumes. 

    Because of this, people always see them as high-risk investments. These mainly attract investors who want big rewards and are willing to take on big risks.  

    Challenges of Investing in Penny Stocks

    Some of the most common challenges of investing in Penny stocks include:

    High Volatility

    The prices of penny stock can jump up or crash within hours, sometimes even minutes. This happens because they’re cheap and attract speculators who buy and sell quickly. Due to these volatile price swings, it is hard to predict returns, and you could lose money faster before you even realize it.

    Limited Information

    It can be very frustrating trying to research penny stocks. Small companies rarely publish detailed financial reports or updates, and that leaves you in the dark about their actual performance. As there is no clear data, you can easily fall for rumors or unreliable tips, which can lead to poor investment returns.

    Liquidity Issues

    Due to their often low trading volumes, penny stocks are difficult to buy or sell whenever you want. It could be challenging to get out of your position, for instance, if you purchase a stock at ₹3 and there are no buyers when you want to sell. Your money may be locked up for longer than anticipated as a result of this lack of liquidity. 

    It is particularly dangerous in markets that move quickly and where stock values might change drastically. It could be challenging to sell at the desired price, and you might have to wait a long time to find a buyer and sell your shares if there isn’t enough trading activity.

    Read Also: How to Analyze Penny Stocks Before Investing?

    Step-by-Step Guide to Finding Winning Penny Stocks

    Here’s a step-by-step guide on how to find penny stocks that’ll blow up: 

    Focus on industries that are booming. For instance, if renewable energy is what is trending at that moment, choose penny stocks tied to that sector. 

    Pay close attention to the news, the performance of that sector, and economic shifts. When you go with a strong trend, you automatically increase your odds of picking a winning stock.

    Step 2: Use a Stock Screener

    A stock screener is a tool that helps you find stocks that match your investment preferences. You can use it to filter through thousands of stocks based on criteria like:

    • Market capitalization
    • P/E ratio
    • Dividend yield
    • RSI
    • Sector

    For example, you can set criteria like stocks under ₹10 and daily trading volumes above 1 lakh. This will help narrow your search for stocks that fit your goals and budget.

    Step 3: Check Liquidity

    Liquidity is very important. This is primarily because it determines how easily you can buy or sell your stock. Your focus should be on penny stocks with higher trading volumes. This is because you can easily trade on them without affecting the price too much. 

    Low liquidity could leave your funds stuck. This mainly happens if you can’t sell your shares at the right time. As a solution, you can check a stock’s daily trading volume on platforms like NSE or BSE.

    Step 4: Research the Company

    Start by doing very deep research about the company’s background and make sure to look out for strong financials, like consistent revenue growth, positive cash flow, and manageable debt levels. A good management team with industry experience is a big plus. 

    For example, if a company has been profitable for several quarters, it shows they’re financially stable. This indicates that the company will likely grow in the future. You can find this information in financial statements or business reports. Also, avoid companies that seem shady or lack basic transparency.

    Step 5: Understand the Valuation and Price of Shares

    Make sure to evaluate the price of a penny stock on a consistent basis. This can be done using key ratios. These can include debt-to-equity and return on equity (ROE). Through these, you will easily find out how well the company manages its finances. 

    Step 6: Consider Your Risk Appetite

    Ask yourself how much risk you can handle. As already stated several times, penny stocks are highly speculative and carry high risks. Although the rewards can be huge, the losses can be just as significant. 

    Step 7: Consider Your Trading or Investing Timeframe

    Think about how long you’re willing to hold the stock. If you want to realize gains quickly, you must monitor the markets closely and act fast. 

    But if you have patience, you could get big returns for holding a good stock for a year or more. Plan your investment horizon based on your financial goals.

    Step 8: Develop a Strategy

    Finally, always set out a clear trading strategy. This basically includes deciding when to buy and when to sell. For instance, if a stock breaks its resistance level, it will be a perfect time to buy.  No matter what happens, stick to your plan to avoid emotional decisions.

    Read Also: The Risks and Rewards of Investing in Penny Stocks

    Conclusion

    Investing in a penny stock can be profitable, but only if you approach it wisely. In this guide, we’ve covered everything. These include the steps on how to pick penny stocks and how you can spot red flags. All this information can help you choose penny stocks with confidence. However, due to the significant risks penny stocks pose, it is wise to consult a financial advisor before investing. 

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Best EV Penny Stocks in India
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    Frequently Asked Questions (FAQs)

    1. Why are penny stocks considered risky investments?

      They are considered risky because they often have low liquidity, high volatility, and limited financial disclosures, making them more prone to price manipulation and sudden value fluctuations.

    2. What key factors should I analyze before investing in penny stocks?

      Before investing in any penny stock, you should analyze financial statements, revenue growth, and debt levels. Moreover, it is necessary to identify penny stocks in industries with high growth potential.

    3. Where can I find reliable information about penny stocks?

      You can research penny stocks using the company’s financial reports, news platforms, industry publications, etc. Moreover, you can use technical analysis along with fundamental analysis to make sound investment decisions.

    4. How can I reduce the risks associated with penny stock investments?

      To minimize risks while investing in penny stocks, you can diversify, set stop-loss orders and invest only what you can afford to lose.

    5. What is the best strategy for choosing winning penny stocks?

      A good strategy to find good penny stocks starts with identifying an industry experiencing tailwinds and using a stock screener to find all the penny stocks associated with an industry. Next, analyze the company’s financials thoroughly and make an informed investment decision.

  • Best Gaming Stocks in India

    Best Gaming Stocks in India

    You might remember playing games with your friends on TV, but with the evolution of time, things have changed drastically. Now, the evolution of innovative technologies and the rapidly changing industry have led to the transformation of the world of gaming. Nowadays, one can play games on their mobile phones or laptops with multiple players across the world. This drastic change has been due to new-age companies working consistently to develop innovative games.

    In this blog, we will give you an overview of the top gaming companies in India and will explain to you how this industry is expected to perform in the future.

    What are Gaming Stocks?

    The gaming stock companies are engaged in various kinds of services and platforms related to games, including video games, Esports, online games, casino betting games, etc. India has seen significant growth in the gaming industry in the past few years; hence, companies in this sector have immense potential to perform in the long run. Investing in this sector can provide exposure to the industry, which is growing rapidly, and can create wealth for investors in the long run.

    List of Gaming Stocks Market Information of Gaming Stocks 

    The list of gaming stocks is given below:

    1. OnMobile Global Limited
    2. Reliance Industries Limited
    3. Nazara Technologies Limited
    4. Delta Corporation Limited

    Market Information of Gaming Stocks 

    CompanyCurrent Market Price (INR)Market Capitalization (in ₹ crores)52-Week High (in ₹)52-Week Low (in ₹)
    Reliance Industries Limited1,28217,34,4441,6091,202
    Nazara Technologies Limited9648,2431,124591
    Delta Corp Limited1012,70315596.8
    OnMobile Global Limited68.272411358.1
    (Data as of 7 February 2025)

    Read Also: List of Stock Exchanges in India

    Overview of Top Gaming Stocks in India

    An overview of the top gaming stocks in India are:

    1. Reliance Industries Limited

    The company was founded in 1966 and renamed itself Reliance Industries Limited in 1973 to reflect its diversified businesses. The company’s subsidiary, Jio, has developed a platform known as Jio Games, which offers cloud gaming, mobile games, esports tournaments, etc. The benefit of this platform is that users do not need to download games; instead, they can play them online. Jio Games has partnerships with NVIDIA’s GeForce to enhance game streaming services in India. The company also hosted various esports tournaments in India, including games like PUBG, Free Fire, Call of Duty, etc. The company’s headquarters is situated in Mumbai.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -14.11%4.74%77.39%
    (Data as of 10 February 2025)

    2. Nazara Technologies Limited

    Nazara Technologies Limited company was founded in 1999 by Mr. Vikash Mittersain and Mr. Nitish Mittersain. Initially, it was an online gaming portal, but in the early 2000s, it shifted its focus to providing mobile entertainment services like comic strips and mobile games. The company became the licensed distributor of EA mobile games in the Middle East, Asia and Africa. Later, in 2017, it acquired Nextwave Multimedia, a leading developer of cricket simulation games, and in 2019, it acquired Sportskeeda, a leading sport and esports media platform. To acquire Openplay, a real money gaming company, it raises funds through IPO and gets itself listed on the Indian Stock Exchange in 2021. The company’s headquarters is situated in Mumbai.

    1Y Return (%)3Y Return (%)5Y Return (%)
    10.85%-5.05%-4.52%
    (Data as of 10 February 2025)

    3. Delta Corp Limited

    The company was incorporated in 1990 as a textile and real estate company and was named Arrow Webtex Limited. Later, in 2008, the company entered the gaming industry by acquiring an offshore casino, Casino Royale, in Goa, and in the same year, it changed its name to Delta Corp Limited. Adda52, India’s leading online poker platform, was acquired by Delta Corp. The company faced trouble during the COVID-19 period; however, once the restrictions were lifted on casinos and tourism, it showed a strong recovery. The company’s headquarters is situated in Mumbai.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -30.12%-65.39%-41.43%
    (Data as of 10 February 2025)

    4. OnMobile Global Limited

    The company was founded in 2000 as a joint venture with Infosys to focus on telecom-related services. The company expanded its operation and included services like ringtones, caller tunes, etc., as well as partnerships with various telecom operators across the globe. To raise funds, the company launched its IPO in 2008 and got itself listed on the NSE and BSE. The company changed its focus from mobile services to gaming and AI services in 2016 and launched ONMO, which is a cloud gaming platform. It is a platform that offers a real-time gaming experience and e-sports. The company’s headquarters is situated in Karnataka.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -33.39%-58.15%122.04%
    (Data as of 10 February 2025)


    Key Performing Indicators (KPIs)

    CompanyOperating Profit Margin (%)Net Profit Margin (%)Return on Equity (%)ROCE (%)Current Ratio
    Reliance Industries Limited14.148.728.779.381.18
    Nazara Technologies Limited9.866.742.834.714.97
    Delta Corp Limited30.9626.339.7010.973.55
    OnMobile Global Limited6.052.982.344.681.22
    (All of the above data is from the year ended March 2024)

    Read Also: 10 Best Copper Stocks in India

    Benefit of Investing in Gaming Stocks

    The major benefits of investing in gaming stocks are as follows:

    • Growth: The major benefit of investing in gaming stock is the growth potential of the sector. The gaming market is expanding globally due to technical advancements and the accessibility of internet services. Mobile gaming, cloud gaming, etc., can contribute significantly to this sector.
    • Revenue Model: The companies engaged in the gaming sector have multiple revenue sources, such as in-game purchases, subscriptions, advertisements, etc.
    • Global Sector: The gaming sector is expanding not only in the Asian region but also in other parts of the globe, such as North America, Europe, etc., which show immense potential in the gaming industry.
    • Diversification: One can invest some part of their portfolio in gaming sector companies to reduce the sector-specific risk.

    Risk of Investing in Gaming Stocks

    The risks related to investing in gaming stocks are as follows:

    • Competition: The gaming industry is highly competitive as various established players, such as Tencent, Sony, etc., can give competition to other companies in this sector.
    • Obsolete Technology: Due to rapid technological changes, the platform on which the games are played, the hardware and software, etc., need regular updates. Hence, if any company lags in updating its technological capacities, it will fall behind.
    • Development Cost: The cost of the development of games is very high; hence, it requires significant investment, and if the game fails to perform well, then the firm may incur heavy losses.
    • Economic Downturn: In case of any economic downturn, the consumer will spend more on the necessities than on discretionary items such as video games, which eventually leads to a fall in the company’s revenues.

    Future of Gaming Stocks in India

    The Indian gaming industry has evolved over some time and converted into a billion-dollar market. As per a recent report, India is one of the largest gaming markets in the world and has a user base of 568 million gamers and over 9.5 billion gaming app downloads in 2023. Between 2020 and 2023, this industry grew at a rate of 28%. With the support of the government and rapid innovation, the demand will soar in the future, and the Indian gaming sector will reach USD 5 billion in revenue by 2025. Hence, the future of the Indian gaming industry is very promising. 

    Read Also: List Of Best Healthcare Stocks in India

    Conclusion

    On a concluding note, the companies engaged in the Indian gaming sector have immense potential to perform in the future. There are a few listed companies in this sector, some of them with core operations in the gaming industry, whereas others are operating through their subsidiary companies. Investment in these stocks comes with numerous risks, such as regulatory compliance and market competition. Therefore, investors are required to conduct thorough research and consult their investment advisor before making any investment decision.

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    Frequently Asked Questions (FAQs)

    1. What are some of the best gaming shares in India?

      In India, there are various companies engaged in the gaming sector, such as Delta Corp, Reliance Industries Limited(Jio Games), Nazara Technologies, etc.

    2. Who is the regulator of the online gaming industry?

      The Ministry of Electronics and Information Technology regulates the online gaming sector in India. It creates the policies that regulate the online gaming industry.

    3. How can I invest in gaming stocks?

      To invest in gaming stocks, you must open a demat and trading account. Pocketful also offers you a lifetime free demat account, which can be opened online.

    4. Should I invest in gaming stocks?

      The gaming industry is developing very rapidly, and with the evolution of technology, the gaming sector will perform well in the near future. Hence, one can invest in gaming stocks as this industry is expected to reach $5 billion in revenue by 2025.

    5. Which is the best gaming stock in India?

      Nazara Technology is considered one of the best gaming stocks in India because it has a diversified product portfolio that includes e-sport, mobile gaming, etc. However, you should carefully analyze the company’s financial statements or consult a financial advisor before investing.

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