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  • What is NASDAQ: How it Works & How to Invest in Companies listed on it?

    What is NASDAQ: How it Works & How to Invest in Companies listed on it?

    NASDAQ is one of the world’s largest stock exchanges in the world, where investors from all over the world can invest in companies focused on innovation and growth. Today, many people want to know about NASDAQ and want to know how to invest in NASDAQ listed companies. Investing in NASDAQ listed companies has now become easy even from India through ETFs, mutual funds and digital platforms. 

    This article explains in detail about NASDAQ, its working and the easiest ways to invest in companies listed on NASDAQ.

    What is NASDAQ?

    NASDAQ is an electronic stock exchange where the world’s largest and fastest-growing tech companies are listed. Its full name is National Association of Securities Dealers Automated Quotations. It is a platform where market participants can trade in the stock market completely digitally. 

    The biggest feature of NASDAQ is its fully automated and screen-based trading system, which provides facilities like real-time quotes, transparency and fast execution. Today, more than 3,300 companies are listed on NASDAQ, and its key indices, the NASDAQ Composite and NASDAQ-100 have become major benchmarks for global investors to track US markets.

    History of NASDAQ

    NASDAQ was started on 8 February 1971 in America. At that time it was the world’s first fully computerized stock exchange, which completely changed the old way of trading. In traditional exchanges where trading took place on the physical floor, NASDAQ started exchanging orders electronically on the screen for the first time.

    Initially NASDAQ was only a quotation system – that is, it only showed share prices. But gradually services like transactions and order execution were also added to it, and it became a full-fledged stock exchange. After 1990, NASDAQ started growing rapidly and it became the biggest center of the tech boom. In 1986, companies like Microsoft were listed on NASDAQ. Companies like Tesla, Amazon, Google (Alphabet), Meta and Nvidia have since joined NASDAQ, making it the world’s most tech-savvy and innovation-driven exchange.

    Read Also: What is AI Trading?

    How NASDAQ Works : Inside the Tech-Driven Exchange

    Let’s take a closer look at the key features and inner workings of NASDAQ.

    1. Fully Electronic Trading System : NASDAQ is a stock exchange that is completely electronic from the beginning. Every trade here is done through a high-speed computer system that is, no floor trader, no physical interaction. Due to this system, trade is fast, efficient and less error-prone. NASDAQ’s technology is so advanced that it can handle millions of orders every second.
    2. Advanced Order Matching Engine : Whenever an investor places a buy or sell order, NASDAQ’s automatic system immediately matches it with the best available price. The special thing about this matching engine is that it completes the trade without any delay, which maintains liquidity in the market.
    3. Important Role of Market Makers : Many market makers are active in NASDAQ, who continuously give buy and sell prices for stocks. Their job is to always maintain liquidity in the market so that the investor can trade at any time. Due to their quotes, there is not much fluctuation in the price and the market remains stable.
    4. Real-Time Transparency and Data Access : Every transaction is visible on NASDAQ in real-time. Price changes, volume data and news updates are immediately available to investors, allowing them to make the right decisions at the right time. This transparency makes NASDAQ reliable for global traders.
    5. Market Safety with AI Surveillance : NASDAQ is not only fast, but also safe. Its systems have AI-based surveillance tools that monitor every trading activity. If an unusual or suspicious trade pattern is identified, the system immediately generates alerts, ensuring investor safety.

    How Do Companies Get Listed on NASDAQ?

    Companies must complete the process and fulfill other requirements given below to get listed on NASDAQ.

    Step 1: Meet Financial & Governance Requirements

    Companies must meet a number of financial benchmarks to be listed on the NASDAQ. For example, a company must have $11 million in aggregate pre-tax earnings over the past three years or meet strict cash flow, revenue, asset standards, including a market capitalization of $550–850 million. Also, the share price must be at least $4 ($3 is acceptable in some cases), and there must be a minimum of 1.25 million publicly traded shares and 2,200 shareholders.

    Step 2: Prepare & Submit Listing Application

    The official process is completed through NASDAQ’s Listing Center, where companies must fill out an online application, including audited financial statements, corporate governance documents, SEC filings, and other required details. Once everything is submitted, the NASDAQ team conducts an initial review and sends comment letters for feedback or clarification of documents; this process typically takes 2- 3 weeks.

    Step 3: Symbol Reservation & Application Review

    Once the application is accepted, companies must reserve their trading symbol. The NASDAQ team assigns companies an analyst who monitors the application process and recommends necessary corrections.

    Step 4: Get Approved & Go Public 

    Finally, after meeting all compliance requirements and submitting fees (entry fee $50–295k and annual listing fee $55–150k or more), NASDAQ gives listing approval. After this, the company’s stock starts trading publicly on NASDAQ.

    Ongoing: Compliance & Maintenance

    NASDAQ expects listed companies to comply with the regulatory and governance standards. Failure to comply with the specified rules and regulations can cause the company to get delisted. 

    How to Invest in Companies listed on NASDAQ from India?

    You can invest in stocks listed on NASDAQ from India by following the process mentioned below:

    1. Investing through International Mutual Funds : Indian investors can use international mutual funds to get exposure to NASDAQ-listed companies. These funds directly track benchmarks like U.S. equity indices like NASDAQ-100. You can invest via SIP or lumpsum amount.
    2. Through U.S. Brokerage Platforms : Several global investing platforms like Vested, INDmoney, etc. allow you to invest directly in the U.S. stocks. Through these applications, you can even buy shares of NASDAQ-listed companies like Apple, Tesla, Amazon in fractions.
    3. Through Global Access through Indian Brokers : Some Indian brokers like ICICI Direct, HDFC Securities, and Kotak Securities provide global investing services. With their help, you can invest in NASDAQ stocks from your existing Demat account though there are some documentation and compliance steps.
    4. Through ETFs (Exchange Traded Funds) : ETFs tracking the NASDAQ-100, such as Motilal Oswal NASDAQ 100 ETF listed in India, are a smart way to in NASDAQ listed companies. You can buy them like regular shares.

    Read Also: What is AI Washing? Definition, Tips, Evolutions & Impact

    Why Should You Consider Investing in NASDAQ listed companies?

    You can consider investing in NASDAQ listed companies due to the following reasons:

    1. Innovation-focused Index : The NASDAQ offers investing in companies working on future technologies and solutions. Most of the companies listed here focus on research, new products and cutting-edge technology, making it a unique choice for long-term investors.
    2. Global exposure without going abroad : Investing in NASDAQ companies gives you direct exposure to US markets. Investing in these companies gives you ownership of dollar-denominated assets, which also acts as a currency hedge in case the value of the rupee falls.
    3. Diversification : Investing in a diversified index offered by NASDAQ not only gives you exposure to multiple sectors such as global pharma, fintech, semiconductors, and cloud services but also provides geographical diversification by allowing you to participate in the growth of leading U.S. and international companies, thereby reducing overall portfolio risk.
    4. Keeping pace with a rapidly changing world : The NASDAQ prioritizes companies that are leading change, not just reacting to it. If you want your investments to not just remain stable, but to actively grow, it may be worth focusing on agile and future-ready companies listed on NASDAQ.

    Read Also: Best Trading Apps in India

    Conclusion

    Investing in NASDAQ-listed companies means being a part of the growth story of the top companies in the world. But before that, it is important that you understand the basics of the stock market- like the movement of the US market, the fluctuations of the dollar and the long-term growth perspective of the US economy. It is recommended you start with a small capital and invest in NASDAQ listed companies after thorough analysis. It is advised to consult a financial advisor before investing.

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    Frequently Asked Questions (FAQs)

    1. What is NASDAQ-100?

      NASDAQ-100 features 100 largest non-financial companies listed on the NASDAQ stock exchange.

    2. Can Indian investors invest in NASDAQ listed companies?

      Yes, one can invest through mutual funds, ETFs and through brokers that allow investing in US markets.

    3. What are the benefits of investing in NASDAQ companies?

      One gets exposure to high-growth companies and the portfolio becomes more diversified.

    4. Is foreign currency fluctuations a concern while investing in NASDAQ listed companies?

      Yes, the price fluctuations in the USD/INR exchange rate can directly impact returns.

    5. Is investing in NASDAQ companies suitable for long-term investors?

      Yes, it is ideal for long-term investors looking to invest in companies focused on innovation and growth. However, it is advised to consult a financial advisor before investing.

  • Top 10 Option Trading Books in India [2025]

    Top 10 Option Trading Books in India [2025]

    Options trading can be highly rewarding, but it requires a solid understanding of the concepts to trade options profitably. Videos or tips alone help to some extent, but option trading books are the best when it comes to in-depth learning. These books explain everything from option trading basics, strategy and risk management. 

    If you are looking for the best books on options trading in India, then this article is for you. Here, you’ll find a curated list of the top and most up-to-date books for 2025 to help you master the art of options trading.

    Top 10 Best Option Trading Books

    NameAuthorMain FocusBest For
    Options as a Strategic InvestmentLawrence G. McMillan60+ options strategies, hedging techniques, in-depth analysisIntermediate to advanced traders
    Option Volatility and PricingSheldon NatenbergVolatility, Greeks, pricing models, premium behaviorAdvanced-level traders
    The Bible of Options StrategiesGuy CohenStrategy guide in easy language with charts and visualsBeginners and intermediate-level traders
    Trading Options GreeksDan PassarelliDeep understanding of Delta, Gamma, Theta, Vega (Greeks)Traders learning adjustments and risk
    Options Trading: The Hidden RealityCharles CottleRisk management and complex position setupsSerious and professional option traders
    The Options PlaybookBrian OverbyCategorized strategies with real examples and simplified termsNew traders and part-time investors
    Options Made EasyGuy CohenBasics, risk control, and simple option strategiesComplete beginners in options trading
    Mastering the TradeJohn F. CarterReal-world setups combining options and futuresTechnical and multi-instrument traders
    Trading in the ZoneMark DouglasTrading psychology, discipline, and mindsetFor traders focusing on developing trading psychology
    NISM X Taxmann’s Equity DerivativesNISMSEBI regulations, framework of options market in IndiaIndian traders and NISM exam aspirants

    Read Also: Best Options Trading Chart Patterns

    Brief Overview of the 10 Best Options Trading Books 

    A summary of the 10 best options trading books has been given below:

    1. Options as a Strategic Investment

    This book is considered a classic in the world of options trading. It explains more than 60 options strategies in detail, such as covered calls, spreads, straddles and combinations. McMillan has presented the trading logics, risk-reward ratio and practical application of each strategy in a very simple language. If you are at an intermediate or advanced level in the options market, then this book can help you master things like multi-leg strategies, volatility shifts and hedge planning. Its concepts are fully applicable for traders trading options in India as well, just a little adjustment is required to the context. This is a must-read for a serious options trader.

    Options as a Strategic Investment

    2. Option Volatility and Pricing

    This book is considered to be a definitive guide to understanding volatility and pricing in the options market. Natenberg has explained implied volatility, historical volatility and option Greeks (Delta, Gamma, Vega, Theta) in simple language in this book. This is especially important for traders who trade near expiry or scalp weekly options. In this, theoretical models have been explained by linking them to real market situations, which makes the concepts even more practical. This book is very helpful to understand the rapidly changing premiums and declining values over time in the Indian options market. This book provides a strong foundation for advanced learning.

    Option Volatility and Pricing

    3. The Bible of Options Strategies

    If you want to understand option strategies in a visual and step-by-step way, then this book is perfect for you. It explains more than 60 option strategies with charts, graphs and tables, so that even beginners can learn quickly. Guy Cohen has given different strategies for bullish, bearish, neutral and volatile market conditions. Indian traders get practical clarity in this as to when and how to apply which strategy. This book is very useful for those who want to understand the theory as well as real-time application.

    The Bible of Options Strategies

    4. Trading Options Greeks

    This book focuses completely on option Greeks (Delta, Gamma, Theta, Vega). Dan Passarelli has explained how these Greeks affect the risk and reward of an option position. Especially for Indian traders, who struggle with Theta decay near expiry, this book can become a practical toolkit for them. It also includes real-world trade adjustments and risk management strategies. For traders who want to move beyond directional betting and learn data-driven trading. It is an excellent guide to understanding option adjustments and portfolio hedging.

    Trading Options Greeks

    5. Options Trading: The Hidden Reality

    This book opens up the layers of options trading that a beginner usually misses. Charles Cottle has explained in depth complex concepts like option structure, synthetic positions and dynamic hedging. This book is not theoretical but based on a real-time mindset and execution. Although its language and depth is a bit advanced, it is a must-read for serious traders who are looking for consistent profits. It helps in looking at the mechanics of options trading from a scientific perspective, especially when adjusting or hedging positions.

    The Hidden Reality

    6. The Options Playbook

    This book presents options trading as a “playbook”, where each strategy is explained based on the mood of the market you are in bullish, bearish or neutral. Along with real-life examples, entry, exit and break-even points are also explained very precisely. Brian Overby has written it especially for beginners and part-time traders who want to take smart decisions by understanding the strategy. Indian traders will get the clarity in it which is often lacking in YouTube content.

    The Options Playbook

    7. Options Made Easy

    As the name suggests, this book is written to make options trading easy. Guy Cohen explains the basic terminologies, strategies, and risk control of options in a very simple language. This book is ideal for those who are just entering the options market and want to get clear information without complex calculations. The visual charts and case examples included in it are very helpful for beginner Indian traders to understand. This book is highly recommended for a solid foundation.

    Options Made Easy

    8. Mastering the Trade

    This book focuses on options as well as futures and technical analysis. John Carter also discusses his real trades, setups, and psychological preparation. Timing and entry-exit planning are very important in options trading, and Carter teaches this very well. If you want to learn options as a complete system, not just a strategy – then this book can prove to be very beneficial for you. Indian index traders will find it helpful to understand the multi-timeframe approach.

    Mastering the Trade

    9. Trading in the Zone

    This book is considered to be the best to understand the psychological strength of options or any trading form. Mark Douglas has explained in it that successful trading depends not only on strategy but also on mindset. Fear, doubt, overconfidence and how all these affect our decisions, has been explained in a very accurate and relatable manner. Indian option traders who repeatedly face small losses or missed entries, this book can teach self-analysis and emotional control. It is a master guide of mental discipline.

    Trading in the Zone

    10. NISM X Taxmann’s Equity Derivatives

    This book is important to understand the structure, rules, and regulations of the Indian derivatives market. In this book published by NISM, both futures and options have been explained under the framework of SEBI. If you want to consider option trading as a profession and not just a hobby, then this book becomes a must. Through this, you can get a complete understanding of things like contracts, lot sizes, expiry rules, and risk disclosures in the Indian market. It is also a recommended book for those preparing for NISM certification.

    Read Also: Option Chain Analysis: A Detail Guide for Beginners

    How to Choose the Right Option Trading Book?

    Every trader has different needs and learning stages so choosing the right option trading book is just as important as developing a strong trading strategy. Here are 5 important things to consider before you read any book:

    • If you are new to trading, choose a book that explains basic concepts like call, put, strike price and expiry in simple language. Experienced traders will find books focused on advanced strategies, volatility analysis and risk management more useful.
    • Some books are based on options strategies, some on psychology or decision-making, and some are purely on theory. You should choose content according to your needs — whether it is income generation or mindset building.
    • Most books are written keeping in mind the US market, which has American-style options. India uses European-style options that settle on expiry. So choose books whose concepts are globally relevant.
    • A great option trading book not only teaches concepts but also teaches practical application through real-world examples, charts and trade setups.
    • Some books are written in technical terms and complex language. So choose a book that you can easily understand.

    Conclusion

    Choosing the right book to learn option trading can create a strong foundation. Whether you are a beginner or an experienced trader, a good book not only teaches strategies but also explains important aspects like discipline, mindset and risk control. All the best option trading books mentioned above provide practical knowledge as well as real market understanding. Every trader should choose a book according to his learning level, so that knowledge can be converted into action. Right information, decision taken at the right time this is the hallmark of a successful options trader.

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    Frequently Asked Questions (FAQs)

    1. Which is the best book for option trading beginners?

      Options Made Easy is a great book for beginners as it explains basic concepts in simple language.

    2. Are there any Indian authors who have written good options trading books?

      “How to Make Money Trading Derivatives” by Ashwani Gujral and “Mastering Options Trading in the Indian Stock Market” by Nagaraj Balasubramaniam offers comprehensive, India-focused strategies on charting, risk management, psychology, hedging and advanced options techniques.

    3. Do these books cover Indian stock market examples?

      Some books do, but most of the concepts are globally applicable to the Indian market as well.

    4. Can I learn option strategies just by reading books?

      Books provide a foundation, but practice and market experience are also important.

    5. Are these option trading books useful for intraday traders?

      Yes, many books provide short-term strategies and risk management tips that are useful in intraday trading.

  • Top 10 Best Traders in India – Learn from the Legends

    Top 10 Best Traders in India – Learn from the Legends

    The stock market is a place of both remarkable success stories and cautionary tales. While some traders have earned massive profits, others have faced significant losses. The difference lies in their strategies, skills, and understanding of the market. 

    But who are the best traders in India whom you should look up to? Well, if you are a new trader, looking for some inspiration, you have landed at the right place. Find the list of the top 10 traders in India here and know all the details about them you need.

    Top 10 Traders in India

    Who is the best trader in India? Well, if you are also wondering this,then it’s important to understand that the best trader isn’t just someone who earns the most. It’s someone who trades consistently, manages risk wisely, and adjusts his strategy with market trends. 

    The title of the best trader in India could belong to anyone who has mastered these principles. However, most of the names mentioned below have been traders in the past and now shifted their focus to investing and other business ventures. So, here is the list of the top traders in India:

    NameNetWorth (in ₹ Crores)
    Radhakishan Damani1,82,725
    Rakesh Jhunjhunwala62,799
    Porinju Veliyath247.8
    Raamdeo Agrawal15,939
    Dolly Khanna389
    Ashish Kacholia2,700
    Vijay Kedia1,224
    Nemish Shah3,149
    Mukul Agrawal7,742
    Nikhil Kamath26,024
    (Data as of July 2025)

    Read Also: 10 Top Investors In India And Their Portfolios

    So, now that you know the list, let us explore the details of these traders here.

    1. Radhakishan Damani

    Radhakishan Damani, famously known as the “Retail King” of India was once regarded as the No. 1 trader in India. He is the founder and chairman of DMart. 

    After completing his education, he started trading. It was his skills in trading the financial markets during the 1990s that made people start to recognise him. Using his trading skills and market knowledge, he earned massive profits when the markets fell after the Harshad Mehta scam.

    He is known for his visionary and disciplined business approach. This is one of the reasons that helped him to make DMart the biggest retail chain in India. Today, it has 300+ stores. 

    2. Rakesh Jhunjhunwala

    Undoubtedly, he is one of the best traders in India and is often called the “Big Bull of India.” It is his skills and knowledge which has led people to compare him with Warren Buffett.  

    Around 1985, he started investing in stocks. He started his journey with as little as ₹5,000. He was also one of the traders that benefitted from creating short positions during the Harshad Mehta scam. Soon after, he became an investor and built a massive investment portfolio over the decades. He invests in fundamentally strong companies with good management. 

    This long-term holding strategy offered him great returns. Besides investing, he co-founded Akasa Air and served on several company boards. He had a sharp market insight and was a legendary figure in Indian stock markets.

    3. Porinju Veliyath

    Porinju Veliyath built his career from humble beginnings in Kerala, starting as a floor trader before founding Equity Intelligence in 2009. He specializes in contrarian bets, identifying undervalued small-cap companies overlooked by the market and holding them until their true worth is realized by market participants. Notable early picks include Balrampur Chini and HEG, which delivered multibagger returns. His bold, research-driven style often at odds with prevailing trends has earned both criticism and acclaim, cementing his reputation as one of India’s most fearless and successful traders.

    4. Raamdeo Agrawal

    He is an Indian businessman and co-founder of Motilal Oswal Group. To complete his CA studies, he moved to Mumbai. Post completing, he started his career as a sub-broker in 1987.

    He is the one who coined the QGLP rule, i.e., Quality, Growth, Longevity, and Price. He is known for his long-term commitment to quality stocks. Most of his holdings are multi-decade, which has allowed him to earn above benchmarks. 

    His idea of investment is based on deep research and long-term planning. He is one of the top 10 traders in India. He has helped to build a strong image of a thoughtful and consistent investor in the market.

    5. Dolly Khanna

    Dolly Khanna prefers anonymity, yet her stock selections speak volumes. With a focus on emerging small- and mid-caps, she has unearthed gems such as Rain Industries, Nocil and Tanla Platforms. Her contrarian entry points, typically before a stock hits mainstream radar, have generated compounded returns far above benchmarks. Despite minimal media presence, her disciplined, fundamentally driven approach and ability to spot rapid-growth businesses have made her one of India’s most respected and successful traders.

     6. Ashish Kacholia

    With a unique strategy, Ashish Kacholia is one of the best traders in India today. He invested in the mid- and small-cap companies and focused on finding companies with growth potential in the future. He usually searches for companies that are not generally well–known.  

    He can be considered both a trader and an investor, but in recent years he is more inclined towards long-term investments. It is his research skills and ideas that many people follow his strategies when it comes to investing. He is known for picking stocks with consistent success, which is quite unique.

    Before investing, he does a detailed analysis of the company. This offers him a detailed view which is good for a longer run.

    7. Vijay Kedia

    In the list of successful traders and investors in India, Vijay Kedia is a prominent name. He is known for his unique SMILE strategy that has allowed him to generate huge returns. SMILE stands for Small in size, Medium in experience, Large in aspiration, and Extra-large in market potential.

    This is how he started his investing journey. He focuses on evaluating small and mid-cap companies with growth potential. Recently, his focus shifted towards long-term investing. With his inspiring journey and simple approach, he is now a role model for many traders.

    8. Nemish Shah

    Nemish Shah is a respected Indian investor and trader. He is known as the co-founder of ENAM Holdings. It is one of the well-known equity research firms in India. The firm helps with investment banking and portfolio management.

    He focuses on a research-driven investment style. The idea is to invest in companies with a strong business plan and future. Nemish focuses on every market movement quite precisely before making a decision. He is also an avid reader and observer of everyday market movements. 

    9. Mukul Agrawal

    One of the best traders in India, he is known as the founder and chairman of Param Capital Group. He started his journey in the late 1990s. He worked in Mumbai where he gained the skills. Eventually, he started trading and became a prominent name in the industry.

    He follows an aggressive investment strategy and focuses on small and mid-cap stocks. He is one of the very few traders who have spotted various multibagger opportunities. He believes in taking calculated risks, which makes him one of the very few successful traders in India. 

    10. Nikhil Kamath

    Nikhil Kamath’s trading journey began at 17, working in a Bangalore call centre while quietly investing his modest salary in stocks. By 2006, he and his brother Nithin had obtained sub-broker licenses and founded Kamath & Associates, all while trading on the side and honing his skills in risk management, i.e., cutting losses quickly and sizing positions prudently. In 2010, he co-founded Zerodha and revolutionized markets and subsequently became one of the youngest billionaires in India.

    Read Also: 10 Best Stock Market Traders in the World

    Conclusion

    Trading is not an easy task as it requires deep knowledge, analysis, and patience. So, while there are many good traders in India, only a few can be categorized as the best traders in India. These traders have constantly upskilled themselves, adjusted to market trends and continuously analysed the markets for a better understanding.

    So, whether you are a beginner or an expert trader, you need to focus on adjusting your strategies according to the recent market conditions. Working on your skills can help you earn significant profits. And for the right start to the trading journey, signup on Pocketful today.

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    Frequently Asked Questions (FAQs)

    1. Who is the No. 1 trader in India currently?

      It’s difficult to name a single No. 1 trader in India, as many of the well-known traders discussed above were active traders at some point in their careers but may have since shifted their focus toward investing.

    2. Are all top traders from finance backgrounds?

      No, many traders started trading based on their willingness to learn. You can also learn from their experience and gain knowledge over time to become a successful trader. 

    3. What can beginners learn from these top traders?

      Beginners can learn the importance of discipline, risk management, and continuous learning from these top traders, using their journeys as inspiration to develop their own trading approach.

    4. What makes these traders successful?

      These traders succeed because they combine deep market analysis with disciplined risk management, making informed decisions rather than relying on speculation or emotion.

    5. Do all these traders still actively trade?

      Only a few of these traders still actively trade, while most have gradually shifted their focus toward long-term investing.

  • Risks of Artificial Intelligence Trading

    Risks of Artificial Intelligence Trading

    AI is no longer just a buzzword but a technology that is used widely today. Its real-world applications are wide-ranging, and this is one of the reasons why staying cautious of risks of using AI is important. Especially when you are using AI for trading, you must be extra cautious, as one mistake can lead to significant financial losses.

    But what are the exact risks of using AI for trading and how can you overcome them? Well, if you are a trader who is looking for an answer to the same, then read this guide as it has all the details you need. Find not just the risks but simple solutions that can help you avoid them.

    Understanding Artificial Intelligence Trading

    Artificial Intelligence trading, or AI trading, is the technique of using computer programs to make trading decisions. These programs analyze large amounts of data that can help in understanding past market trends and help predict future market movements better. These computer programs can identify patterns and give buy and sell signals automatically. 

    AI trading works by analysing past prices, news updates, and other financial data. It then predicts possible price movements and places trades automatically. This process is much faster than human trading and can handle many trades at once.

    However, AI trading is not risk-free as it works on the data that you provide. Any mistake in the same can lead to wrong trading decisions. At the same time, if there are changes in the market conditions due to some unexpected events, it might be hard for the system to adapt its trading strategy quickly. So, though it is helpful, it is important that you know the risks of using AI in trading as well as the solutions to avoid those risks. 

    Read Also: How to Use AI for Smarter Investing in India

    Typical Risks of Artificial Intelligence Trading

    AI trading offers speed and advanced analysis. This can save time and allows the traders to get better insights, which is key to completing profitable trades. But there are risks as well. It uses the historical data, which, if unreliable, might lead to financial losses. But there is more to it. 

    Knowing these risks is important for any trader looking to identify positive trades. So, here are the top risks that you must be aware of:

    Risk 1: Over-Reliance on Algorithms

    AI trading systems can make quick decisions. This is mainly because it is based on a pre-defined algorithm. These algorithmic models are trained using years of historical data to account for every market scenario. However, one major risk emerges when traders depend completely on these algorithms without checking or understanding the trades being placed. 

    It works on the set of rules and processes. Now, if there is sudden market news, a policy change, or an unexpected global event, this algorithm may not react appropriately, leading to heavy losses. This risk becomes bigger if traders believe AI can replace their own market knowledge and instincts.

    Ways to Avoid This Risk

    • Monitor Regularly: Ensure that you keep a watchful eye on your AI trading system, especially during periods of market volatility.
    • Set Clear Limits: To avoid the potential losses, ensure that you set stop-loss limits as well.
    • Combine Human Insight: Use AI for analysis only and the final decision should be based upon your judgment only. 
    • Review Performance: Always check the performance of your AI trading system at regular intervals. 

    Risk 2: Wrong Data or Poor Data Quality

    AI trading systems rely completely on data. The data that you offer is used by AI for analysis and interpretation. If you use wrong historical data, then the system will generate results that can be incorrect. 

    For example, omitting an S&P 500 index rebalancing event will skew backtests and live trade signals. Now, if AI assumes no such event is there, then the chances of wrong analysis and prediction are higher. 

    Additionally, data quality issues can arise due to technical glitches or low-quality data sources used for algorithm training.

    Ways to Avoid This Risk

    • Use Verified Data Sources: Gather the data from reliable sources like company websites, news, or other sources. No data should be taken from unverified sources. 
    • Regular Data Points: Check and validate all the data points that you use. Make changes as and when needed.
    • System Testing: Before using it for actual trades, ensure that you train and test your AI trading model using multiple datasets to ensure the robust performance. 
    • Update Datasets: Continuously update and validate your datasets, ensuring they reflect current market conditions, to keep your AI trading model accurate and adaptive.

    Risk 3: Market Volatility

    AI trading models work well when the market follows expected patterns. But this will not always be the case. There is a chance that during volatility, the trend and pattern may change. This will make it difficult for the AI to work. At times, these models can fail. 

    AI predictions are based on historical data and algorithms that may not factor in unexpected future events. This can lead to rapid losses if the AI continues to place trades based on outdated or irrelevant patterns during such times.

    Ways to Avoid This Risk

    • Set Volatility Alerts: Set up the alerts that can guide you when to stop trading due to volatility.
    • Diversify Strategies: Never just rely on AI trading, but also use your market knowledge to develop other strategies to get better results. 
    • Limit Trade Size: Reduce trade volumes in highly volatile markets to minimise potential losses.
    • Regular Model Updates: Update AI models frequently to factor in recent market behaviours and adapt to changing patterns effectively.

    Risk 4: Technical Failures

    AI trading systems use cutting-edge technology and depend on the latest hardware, fast network, and so on. Now, if there is any flaw or failure in any one of these, the entire system will fail to work. This can disrupt trading activities. 

    This may lead to missed trades or even wrong order placements. Now, any of these cases can lead to potential losses, which can impact your trading negatively. Such risks are higher when systems lack proper backup and monitoring protocols.

    Ways to Avoid This Risk

    • Use latest Technology and Hardware: Use good-quality and high-performance hardware equipment to run the latest technology.
    • Maintenance and Backups: Follow a proper maintenance schedule and have a backup for the worst.
    • Emergency Protocols: Set clear steps for quick manual intervention if the system stops working during active trades.

    Risk 5: Overfitting of Models

    Overfitting occurs when an AI trading model learns historical data too precisely, mistaking random noise for meaningful patterns. As a result, even minor deviations in real market conditions can cause the model to fail, leading to poor performance in live trading. This leads to poor trading decisions and financial losses. 

    Ways to Avoid This Risk

    • Use Cross-Validation: Test AI models on different datasets to see how they perform.
    • Simplify Models: Make the model adaptable, which will allow you to adapt to changing market conditions better.
    • Regular Performance Reviews: Review and update your AI models periodically to keep them updated as per recent market trends.
    • Combine with Human Analysis: Use AI as a supportive tool only. Always use human insights to get better results. 

    Tips to Use AI Trading Safely

    AI trading can be a powerful tool if used wisely. So, if you are new to this, here are some tips for you:

    • Know Your AI System: Understand how your AI system works and check the data that it uses. 
    • Start with Low Capital: Start with a small capital when testing your AI trading strategy. Once you achieve consistent and reliable results, gradually increase your investment.
    • Use Stop-Loss Orders: Profits and losses are part of trading. But it is always recommended to keep a stop-loss to limit your losses, even when you use AI.
    • Keep Learning: Stay updated with market trends and AI advancements. Adjust your trading system according to recent updates for better results.
    • Monitor Regularly: Never leave your AI trading system unattended for too long. It is best that you check its performance on a regular basis.
    • Diversify Strategies: Do not depend only on AI trading systems for all of your trading activities. Combine it with manual trading and other investment strategies for balanced results.

    Read Also: What is AI Washing? Definition, Tips, Evolutions & Impact

    Conclusion

    AI trading can make your trading faster and your decisions smarter. But it is important that you do not over-rely on the same. While AI can help, you need to use your experience and insights too. This will limit the potential for losses and help manage profitability. 

    Always consider AI as your supportive tool and should not be considered a replacement for human judgment. Combine both for the best trading results. To strengthen your understanding of trading basics and understand such concepts clearly, visit the Pocketful blog section.

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    Frequently Asked Questions (FAQs)

    1. Can AI trading replace human traders completely?

      No, AI trading cannot fully replace human traders as per the current performance of the AI trading systems. While it helps with the better and quicker analysis of the data, there are still some situations in which humans might make better decisions based on experience and market insights. 

    2. How does AI handle sudden market news or crashes?

      AI trading systems often struggle with the impact of sudden market news or crashes as they rely on historical data and set pre–defined algorithms. They may not react fast enough to unexpected events, so monitoring and manual intervention remain important during such times.

    3. Do I need coding skills to use AI trading platforms?

      The available AI platforms do not require any coding skills. But if you need something customised, then you might need some coding skills.

    4. How often should AI trading models be updated?

      AI trading models should be updated regularly. This will allow you to include the latest data points, help you get better results.

    5. Is AI trading legal in India?

      Yes, AI trading is legal in India, but it must follow SEBI regulations. Traders should ensure their AI systems do not engage in manipulative practices and that all trades comply with market rules to avoid penalties.

  • Benefits of AI in the Stock Market

    Benefits of AI in the Stock Market

    AI has been widely used in almost all sectors. Be it academics or business, the use of AI is increasing rapidly. While AI was expected to impact multiple sectors, it is important to note that the use of AI is also increasing rapidly in the stock market.

    From data-driven predictions to sentiment analysis, the applications of AI in the stock market are many. So, let us explore the same in detail in this blog and see how AI can help investors and traders in the long run. 

    What is AI in the Stock Market? 

    Artificial intelligence (AI) in the stock market means using the latest technologies in the field of artificial intelligence to analyse stock market data and make data driven investment or trading decisions. The aim is to reduce losses due to human errors in investment and trading processes. 

    By using AI, you can study huge amounts of information like stock prices, financial reports, and news much faster. Since AI works with the help of Machine Learning (ML), it also learns from past data. This way, it is able to analyse the past price movements and gives you insights into future trends. Many AI tools also use Natural Language Processing (NLP), which analyzes the current news and market sentiments and can give market insights. 

    Overall, AI does data analysis and gives predictions to support traders and investors. Additionally, using AI can save time, help reduce risks, and even detect frauds early. This can reduce the chances of losses and can help in increasing overall profitability as well. 

    Read Also: Can AI Predict the Stock Market?

    Role of AI in the Stock Market

    AI plays a very important role in the stock market as it helps traders with decision-making and acts as a reliable assistant that can guide traders in volatile market conditions. It can simplify complex tasks and avoid mishaps. Some of the key roles that AI plays in the stock market are as follows:

    • Work as an analyst to track, gather, and work on large amounts of data.
    • It helps predict potential price movements based on past data and make investment decisions.
    • Assists in trade execution and sets automatic trading alerts that can save time.
    • Real-time portfolio adjustments and tracking are possible.
    • Removes all sorts of emotional biases to ensure trades are 100% logical.
    • Helps identify market events that can impact your portfolio negatively.
    • Analyzes news articles and social media posts to understand market sentiments.

    Read Also: What is AI Trading?

    Benefits of AI in the Stock Market

    AI is helping traders to make quicker and better trading decisions. It is allowing them to avoid the errors that are usually involved in manual analysis. The key benefits that are offered by AI in the stock market are as follows:

    1. Faster Analysis

    AI can process and analyse huge amounts of market data within seconds. For example, it can study years of stock prices, financial statements, and global news quickly. This saves you hours of manual research and helps find useful insights faster.

    2. Better Predictions

    AI uses past price data to predict future price movements, by studying the stocks based on their past trends and comparing them with their competitors. Though it is not always accurate, these predictions can help you understand the company’s position better.

    3. Automated Trade Execution

    AI can place buy or sell orders automatically. All this can be done with the help of some preset conditions you can define. This will reduce the need for human involvement in all trades and avoid missed opportunities due to delays, and help traders capture every opportunity even if they are not watching the market at that moment.

    4. Removes Emotional Bias

    Trading decisions are influenced by emotions such as fear and greed. This can lead to wrong decisions, which can cause huge losses. But with AI, you can avoid this altogether as AI works on logic and data only. 

    5. Improved Risk Management

    AI can help in tracking your portfolio on a regular basis. It can highlight negative stocks or trends that can impact your portfolio. Doing so helps you make changes in your portfolio when needed. This can help delete loss-making stocks and ensure profitable ones are added to it. 

    6. Personalised Recommendations

    Every trader has a trading style of their own. While some prefer daily trades, others go for a hold strategy. Likewise, some traders might prefer upcoming companies while others might go for known ones only. AI can study your preferences and work based on that. This will help you with better trades. 

    7. Real-Time Fraud Detection

    AI monitors trades in real-time. This helps to detect any unusual trades or activities. This can help avoid fraud and market manipulation. It can also send alerts to brokers and traders for the same, and can safeguard your interests.

    8. Understanding Market Sentiments

    AI can study the news and articles as well. This helps track stock movements better. This sentiment analysis can help traders understand the market. This can help you stay ahead of the rest.

    9. Saves Time and Effort

    AI can save time and effort greatly. It works on its own once trained and ensures consistency. So, there is no need for repeated tasks at the trader’s end, yet the returns are good.

    10. Efficiency and Accuracy

    With data analysis and real-time performance, the AI offers better outcomes. Trades are done with efficiency and accuracy. This reduces the chances of mistakes, which is quite important.

    Read Also: How to Use AI for Smarter Investing in India

    Challenges of Using AI in the Stock Market

    AI in trading is great. But like any other thing, it comes with its own challenges. These are the ones that you must be aware of. So, here are a few challenges to know:

    1. Dependence on Data Quality

    AI works based on the data we provide. So, if there is any flaw in the data, then there will be a flaw in the outcome AI provides. This can lead to poor trades or even losses.

    2. High Costs of Development and Maintenance

    Developing a dedicated AI for trade based on your specific needs is time-consuming and costly. At the same time, you need technical know-how as well. So, this might not be suitable for everyone.

    3. Lack of Human Judgment and Intuition

    AI cannot think like a human. It follows set algorithms and data patterns, but it cannot understand sudden market changes caused by unexpected news, political decisions, or natural disasters that often shake markets instantly.

    4. Risk of Overfitting Models

    There is a chance that AI will become too focused. So, it might start missing small points which will need reworking. This might not match the exact needs, and again, there will be losses in future.

    5. Cybersecurity and Technical Risks

    AI is connected online. It is prone to cybersecurity and technical issues. If not adhered to and properly managed, your data can be leaked, which is not a good sign. 

    6. Ethical and Regulatory Concerns

    There are various ethical concerns associated with AI. It uses your personal data. If there is one single loophole, your data can be breached. Also, laws change consistently, and if the pace is not maintained, you might face a penalty.

    Future of AI in the Stock Market

    AI is expected to transform the stock market even more in the coming years. As the technology changes, there will be new developments that can help improve. This will in fact change the entire toolkit for a trader. Some of the trends expected are:

    • AI will offer personalized strategies based on each trader’s goals and risk comfort.
    • Algorithmic trading will become faster with trades completing within seconds.
    • Real-time analysis of even minute news will be quicker.
    • Better prediction of potential economic downtrends. 
    • Using AI to avoid manipulation and check regulatory aspects.
    • Clearer and stronger ethical guidelines. 
    • Stronger cybersecurity to avoid technical failures.

    Read Also: Best AI-Based Trading Strategies Explained

    Conclusion

    AI is transforming the stock market greatly. It helps to execute faster and better trades. At the same time, AI can help with quicker predictions and better analysis. This can result in profits and reduced losses.

    Hence, AI is not just a tool but an ally in the stock market. If you are looking to start trading and planning your investments, then Pocketful can offer you the support you need. Open a demat account and start trading here. Gain all the guidance and support you seek to ensure you make better trading decisions. 

    So, start your journey towards informed and confident trading.

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    5Best Artificial Intelligence (AI) Smallcap Stocks

    Frequently Asked Questions (FAQs)

    1. What is the role of AI in stock trading?

      AI acts like a smart assistant in trading. It goes through hundreds of pieces of data and can analyse them. This helps you to understand the trends and make better trade calls. It can also highlight risks and potential fraud. This can help avoid losses. 

    2. Can AI guarantee profits in the stock market?

      No, AI cannot guarantee profits. It can help you with the data analysis and identification of possible trends. It can track news and information, and can help you with better suggestions on trade. But the confirmation of profit is not there.

    3. Is AI-based trading safe for beginners?

      Yes, AI tools can be helpful for beginners. They provide data-backed insights. They can help automate certain trading tasks. This can save time, but you need to stay cautious while using AI.

    4. What are the limitations of using AI in trading?

      The main risks include dependence on data quality, high costs of AI systems, lack of human judgment for unexpected events, cybersecurity risks, and potential overfitting of models to past data patterns.

    5. How can I learn to use AI for my trading strategies?

      You can look for platforms that allow you to use AI or offer AI-based strategies. There are even courses that you can take. Though this will take time, the end result will be great.

  • Tax-Free Bonds: Their Features, Benefits, and How to Invest

    Tax-Free Bonds: Their Features, Benefits, and How to Invest

    What if you could invest, earn a steady income, and pay no tax on it? In India, tax-free bonds make this possible. By investing in tax-free bonds, you essentially lend money to government-backed entities and, in return, earn regular interest income that is fully exempt from income tax. 

    In this blog, we will go into the details of tax-free bonds, along with their benefits and features, to assist you in making the right investment decision.

    What are Tax-free bonds?

    Tax-free bonds are government-issued bonds that provide fixed interest (coupon) payments, which are exempt from income tax, allowing investors to earn tax-free income.

    Power Finance Corporation, National Highway Authority of India, Rural Electrification Corporation Ltd., etc.  are some government backed institutions that provide tax-free bonds. This tax-free bond is a debt investment issued for a longer time duration. The main feature lies in the regular interest income, which is entirely tax free according to section 10(15) iv, of the Income Tax Act, 1961. These bonds are primarily issued to fund infrastructure and other developmental projects in India, offering investors a safe and tax-efficient investment option.

    Read Also: Benefits of Investing in Bonds

    Important Features of Tax-Free Bonds

    Important features of the tax-free bonds are listed below:

    • Tenure: Tax-Free Bonds are typically issued by government-backed entities, or state governments. They usually have a maturity period of 10 to 20 years. It is most suitable for investors who want to save for retirement or their children’s education.
    • Interest Rate: Government issued tax-free bonds pay a fixed minimum of 5.50% and a maximum of 7.50% of the total face value annually. The set interest amount guarantees consistent interest payments during the investment period.
    • Tax Benefits: The primary benefit of tax-free bonds is that the income generated from them does not incur tax expenses as long as the interest qualifies for exemption under section 10(15)(iv)(h). Additionally, interest earned on these bonds is exempt from Tax Deducted at Source (TDS).
    • Safety: Tax-free bonds are considered low-risk investments. These bonds are ideal for risk-averse investors who prioritize capital protection and ensure reliable returns.

    Read Also: What is Coupon Bond?

    Sectors that Issue Tax Free Bonds

    As we have seen these types of bonds are only issued by government backed companies. Now we will see about the most popular sectors in which tax free bonds are issued:  

    1. Power sector: Power generation companies are the ones issuing these bonds, and the amount is used in setting up plants and maintenance related activities. 
    2. Railway Infrastructure: Funds are utilised for developing, maintaining, and advancement of the Indian railways infrastructure.
    3. Infrastructure Bonds: Issued by infrastructural development companies, to invest in the country’s projects like airports, power generation plants and roads.
    4. Public Sector Undertakings Bonds: PSU bonds are issued by government backed companies like HUDCO, REC, NTPC etc. financed for the development of infrastructure, power and housing projects for the country’s growth. 
    5. Housing: These bonds are issued by the National Housing Bank to invest in affordable housing projects in districts and states.

    Things to Consider before investing in Tax Free Bonds

    Various factors to consider before investing in tax free bonds are given below:

    1. Interest Rate Risk : Bond prices and interest rates have a negative correlation relationship. The price of older existing bonds (with a lower coupon payment) tend to reduce in value when the market interest rates increase.
    2. Liquidity and Exit Options : Tax-free bonds can be listed on the stock exchange, notably the NSE and BSE, but their illiquidity can be an issue.
    3. Credit Rating and Safety : While tax-free bonds are typically issued by government-backed entities, it is prudent to verify the bond’s credit rating before making an investment.
    4. Yield and Tax Status : Tax-free bonds yield lower rates of interest than bonds that are taxable. For people in high tax brackets, the after-tax yield may be more.
    5. New Issues Available : No fresh tax-free bonds have been issued since 2016; investors must now buy them in the secondary market.

    Read Also: What are Bond Yields?

    Advantages & Disadvantages of Tax-Free Bonds

    It is prudent to understand the advantages and disadvantages of an investment before making a decision, and tax-free bonds are no exception. Here is what you need to know:

    Advantages 

    1. Tax-Free Income : The exemption of tax on interest income earned through tax-free bonds can significantly improve effective returns for bonds, especially for those whose incomes fall under higher tax brackets.
    2. Low Risk and High Safety : Government-owned institutions such as the HUDCO (Housing and Urban development corporation limited), NTPC (National Thermal Power Corporation Limited), IREDA (Indian Renewable Energy Development Agency Limited) issue tax-free bonds, making them one of the safest fixed-income options available in India.
    3. Predictable and Stable Returns : Bonds provide steady cash flows through guaranteed interest payments at set intervals, making them particularly suitable for retirement planning. Their reliability helps retirees manage expenses and maintain financial stability with minimal risk. 
    4. Good for Long-Term Goals : Without the worries of short-term volatility in the financial markets, these bonds make it possible for investors to effectively plan for prominent life milestones due to their long term maturities.
    5. Secondary Markets : You can buy or sell tax-free bonds on exchanges.

    Disadvantages 

    1. Long Investment Period: The most notable disadvantage is the longer maturity tenure that lasts between 10 or 20 years.
    2. Lower Coupon Rates Compared to Taxable Bonds: Due to the tax advantage, coupon rates remain lower compared to taxable bonds or corporate debentures. Investors who are not in high tax brackets may find the returns unattractive.
    3. Very Few New Issues Available: After 2016, the government ceased the issuance of tax-free bonds. New investment opportunities, therefore, are few and far between. 
    4. Not Ideal for Growth Focused Investors: The primary purpose of tax-free bonds is to generate tax-free income. Tax-free bonds provide lower returns compared to equities and other asset classes, making them not suitable for young aggressive investors.
    5. Low Market Liquidity: Tax-free bonds can not be easily traded in the market as they are less liquid. 

    Read Also: Electoral Bonds Explained: What Are They and Why Did Supreme Court Ban It?

    Conclusion

    Tax-free bonds can be a suitable investment opportunity for those investors who are looking to earn stable tax free income with minimal risk. Understanding the characteristics and advantages of tax-free bonds enables investors to make decisions which best fit their financial objectives. Always assess your investment time frame, risk level, and liquidity requirements prior to making an investment. Consult a financial advisor before investing.

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    Frequently Asked Questions (FAQs)

    1. Who is best suited to invest in tax-free bonds?

      Tax-free bonds best suit conservative investors with low risk appetite or individuals in higher tax brackets, who seek consistent tax-free income over an extended time period.

    2. Can tax-free bonds be purchased today?

      Investors can still buy existing bonds through the secondary market on stock exchanges; although new issues have been restricted since 2016.

    3. Is it possible to sell tax-free bonds prior to maturity?

      Tax-free bonds can be sold prior to maturity. Investors can sell them in the secondary market. However, the selling price is subject to market conditions.

    4. What is the taxation policy for interest accrued on tax-free bonds?

      Interest earned on tax-free bonds, as the name suggests, is not subject to income tax. However, any sales profits made when selling the bond in the secondary market will incur a capital gains tax, depending upon the holding tenure. 

    5. What is the minimum amount required to invest in tax free bonds? 

      Many tax free bonds have a minimum investment requirement of ₹1,000, though this amount can vary across issuers.  


  • Types of Bonds in India

    Types of Bonds in India

    Imagine a situation where you can act like a bank and give credit to the government, corporations or established companies and earn regular interest payments on the credit given, sounds interesting right? This is what happens when you invest in bonds. The Indian market is diverse in terms of bonds as there are different types of bonds available for investing. 

    Bonds are debt securities issued by governments, companies, or municipalities to obtain financing from the public. The buyer of a bond becomes a creditor to the issuing entity and, in return, the issuer agrees to pay them interest (coupon payments) on the debt and return the face value of the bond upon maturity.

    Bonds are among the most secure investment instruments worldwide. They continue to gain momentum in India, as more and more investors seek to go beyond equities and fixed deposits. In this blog, we will discuss different types of bonds, their features, benefits and risks of investing in them.

    Types of Bonds in India

    Let’s analyze the most notable types of bonds available in Indian financial markets:

    1. G-Sec or Government Bonds

    • Issuer : Central or State Government
    • Security : Very High, backed by sovereign guarantee
    • Bond Features : Long tenures (5-40 years), semi-annual coupon payments, bonds are traded on exchanges like NSE & BSE.
    • Ideal For : Conservative investors who prefer safety and stability.

    2. Corporate Bonds

    • Issuer : Any Private Or Public Limited Companies
    • Security : Depends on the company’s creditworthiness.
    • Corporate Bonds Features : Medium To High Yield, Moderate Risk, Credit Ratings like AAA, AA, Etc.
    • Perfect for : Bond market investors who are willing to take moderate risk can buy these bonds for better returns than government bonds.

    3. Tax-Free Bonds

    • Issuing Companies : Fully owned government subsidiaries like NHAI, PFC, and REC.
    • Advantages : Interest payout in this is exempted under the Income Tax Act Section 10(15).
    • Average Duration : With a minimum restriction period of as low as 10 and a maximum of 20 Years.
    • Perfect for : High earning individuals looking for tax efficient investments

    4. Zero-Coupon Bonds

    • Issuer : Both government entities as well as corporation/companies
    • Interest Pay-Outs : No coupon payments, only face value is paid at the maturity of the bond
    • Pricing : Initial buying price is less than the face value of the bond
    • Perfect for : People hoping to receive a lump sum amount on bond maturity dat e.

    5. Floating Rate Bonds

    • Issuer : Government, corporations or financial institutions 
    • Interest Rate : Changes as per the prevailing policy rate of the central bank.
    • Volatility : Excellent for protection against expected increase in interest rates.
    • Ideal for : People who think interest rates will go up.

    6. Inflation-Indexed Bonds (IIBs)

    • Issuer : Generally issued by Government 
    • Purpose : These bonds are structured in a way to save your investments from inflation 
    • Payouts: Inflation – adjusted principal is paid at the maturity of the bond
    • Perfect for: Pensioners and other investors who wish to protect the value of assets against inflation.

    7. Perpetual Bonds

    • Issuer : Financial Institutions 
    • Average Duration : No fixed maturity date, depends upon the issuers discretion
    • Payouts : Bonds with no supervising organizational structures pay good interest rates but are riskier compared to conventional corporate bonds.
    • Perfect for : Sophisticated investors looking for long term investments and impressive yields.

    8. Convertible Bonds

    • These bonds can be converted into equity shares of the company after specific time duration
    • Flexibility : Guarantees fixed income with chances of capital appreciation by converting bonds into equity
    • Ideal for : Investors that want a balance between fixed income and capital appreciation 

    9. Callable and Puttable Bonds

    • Callable Bonds: Can be redeemed by the issuer before the maturity date.
    • Puttable Bonds: Can be sold back to the issuer back before the maturity date.

    10. Green Bonds

    • Use: Your money is invested in environmentally sustainable projects.
    • Popular amongst investors focusing on ESG initiatives.
    • Ideal for: Investors who are unwilling to profit at the expense of the environment.

    Read Also: What is Coupon Bond?

    Basics of Bonds 

    1. Issuer

    Following entities issue bonds in India

    • Government of India (G-Secs, Treasury Bills)
    • State Governments (State Development Loans)
    • Public Sector Companies (NHAI, PFC, REC)
    • Private Corporates (via Non-Convertible Debentures)
    • Municipal Bodies (Municipal Bonds)

    2. Terminology 

    A.) Maturity Period

    The term refers to the length of time before the bond’s principal is paid back. This can be:

    • Short-term (up to 1 year)
    • Medium-term (1 to 5 years)
    • Long-term (5 to 30 years)

    A few bonds have no maturity date, also known as perpetual bonds, paying interest endlessly without ever paying back the principal.

    B.) Coupon Rate

    The percentage of the total face value paid out as interest annually. Coupon payments are determined using the coupon rate. Normally these coupon payments are paid out to the bondholder once or twice a year.

    • Floating rate bonds have fluctuating coupon rate 
    • Fixed-rate bonds have set coupon rate

    C.) Face Value

    This is also known as par value or principal amount that the issuer needs to pay back to the bondholder once the bond matures.

    D.) Market Price

    The current market value of the bond in the secondary market. This may differ from the face value of the bond. It can go higher or lower than the face value depending on the interest rate, supply and demand, or creditworthiness of the company.

    E.) Credit Rating

    Shows the issuer’s creditworthiness and is given from rating companies like CRISIL, ICRA, and CARE.

    • AAA: Highest safety • AA/BBB: Moderate risk • BB and below: High risk

    Read Also: What are Bond Yields?

    Factors To Consider Before Investing In Bonds:

    Evaluate how a specific bond fits into your overall investment strategy. Here are important considerations:

    1. Investment Timeframe : Invest in bonds that meet your financial milestones. If your milestone is 3 years, a medium-term will suit your investment. Long-term bonds are more appropriate for goals such as retirement.

    2. Trends of Interest Rates in The Market : Interest rates and bond prices have an inverse relationship. Existing bonds are of less value when interest rates rise. During a period of rising interest rates, short-term or floating-rate bonds are advisable.

    3. Impact of Inflation : High inflation affects the fixed return making them negative in real terms. Inflation-linked or floating-rate bonds protect purchasing power.

    4. Liquidity : Not all bonds can be easily sold. Government bonds and corporate bonds are generally easier to trade. Always confirm voluntary exit options before maturity.

    5. Tax Impact : The taxation treatment on the income generated by bonds is not uniform.

    • Tax-Free Bonds come with exempt interest under section 10(15).
    • Bonds under section 54EC offer exemptions for capital gains.
    • The interest received on corporate bonds is taxable under the income tax slab applicable to the investor.

    6. Credit Risk : Very low risk is associated with government bonds. Corporate bonds have varying levels of risk. Analyze the financials and the rating history of the issuer before investing.

    7. Appetite for Risk : For investors with a lower risk tolerance, government bonds or instruments with AAA ratings are suitable. Higher risk can be opted for better returns means BBB rated corporate bonds after thorough analysis.

    Benefits of Investing in Bonds

    A well-balanced portfolio will include bonds because they help achieve both short- and long-term objectives. Here is how bonds can address the needs of investors:

    1. Steady Income : Bonds pay interest at regular intervals and have a fixed income schedule, making them appealing for low-risk investors.

    2. Preserving Capital : In most cases, bonds preserve initial capital value when defaults are not made, due to the fact that they return the invested principal when held until maturity.

    3. Portfolio Diversification : Adding bonds to a portfolio helps mitigate overall risk because they have a lower correlation with stocks.

    4. Tax free Returns: Investing in certain tax-exempt municipal bonds offers attractive post-tax returns.

    5. Reduced Volatility Risk : Every security experiences normal daily fluctuations in share price and equities are more affected by these compared to bonds, making the latter more stable.

    Risks of Investing in Bonds 

    Though bonds are safer than other forms of investing, some of the risks associated with investing in bonds are given below:

    1. Lower Returns : Unlike bonds which favor safety, equities have greater long-term returns meaning they outperform bonds over an extended period.

    2. Interest Rate Changes Risk : Long-term fixed-rate bonds are hit hardest during interest rate changes but any bonds in the long run will suffer due to a decrease in the bonds’ market price.

    3. Increased Risk of Inflation : The rising cost of living will reduce real returns regardless of the fixed interest income over time.

    4. Credit/Default Risk : One of the risks associated with corporate bonds is the possibility of default due to issuer defaults. Bonds with lower ratings have higher returns and are riskier.

    5. Liquidity Constraints : Some bonds are not easily marketable prior to maturity. This can pose an issue when seeking liquidity.

    Read Also: Electoral Bonds Explained: What Are They and Why Did Supreme Court Ban It?

    Conclusion

    Bonds provide safety, income, and diversification simultaneously. They are best suited for conservative investors. However, they must be selected very carefully as you have to take your financial goals, tax situation, and risk taking willingness into consideration. Bonds can be predictable contrary to equities and are essential during uncertain market conditions. They provide low returns but protect capital. Always confirm the research on the issuer before investment, understand the bond structure, and seek a financial expert if necessary.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    3Detailed Guide on Bond Investing: Characteristics, Types, and Factors Explained
    4Benefits of Investing in Bonds
    5Stocks vs Bonds: Difference Between Bonds and Stocks

    Frequently Asked Questions (FAQs)

    1. What is the minimum amount required to invest in bonds in India?

      The Government of India bonds require a minimum of ₹10,000 investment, while the minimum amount required to invest in corporate bonds can vary.

    2. Are bonds safer than stocks?

      Yes. Generally, bonds are considered safer than stocks because they provide fixed interest payments and return the principal amount if held to maturity.

    3. Can I sell my bond before maturity?

      Yes bonds can be sold in the secondary market. Their selling prices are dictated by current interest rates, demand in the market, and the bond’s credit rating. Some bonds, especially unlisted ones, can be poorly liquidated.

    4. Are returns from bonds taxable?

      Bonds do pay certain interests which are payable as income and are divided by slab, but there are some exemptions like tax free municipal bonds or other bonds under section 10 of the income tax act. Also, capital gains from bond trading also is taxable depending on any time in the holding period.

    5. Which type of bond is best for first-time investors?

      First time investors can look into starting with Government Securities (G-Secs) or RBI Floating Rate Savings Bonds because of their safety and moderate returns. Tax-free bonds and AAA rated corporate bonds are also good for those looking for stable investment alternatives.

  • Different Types of Trading in the Stock Market

    Different Types of Trading in the Stock Market

    Trading in the stock market sounds good right, but can there be more than one way to trade stocks? Can we earn from trading by making multiple trades during a day? Can profits be earned from trading in minutes? You must be having multiple questions. In this blog we will be learning about different types of trading in the Stock Market.

    The Indian stock market features millions of traders using a variety of trading strategies to earn profits. From fast-paced intraday trading to the more patient approaches of swing and positional trading, each method presents its own set of opportunities. 

    Types of Trading in Indian Stock Markets

    Different types of trading in the Indian stock market are given below:

    1. Intraday Trading 

    It is a type of trading in which traders buy and sell stocks within the same trading day, where small price fluctuations are monitored to gain profits. 

    Key Features:

    Traders close out all positions before the market closes. Traders have to monitor the market and make decisions in real-time. The market witnesses very small price changes, these price changes are captured for making profits. It is Ideal for experienced traders who are comfortable with instant changes and extreme risk.

    Advantages of Intraday Trading 

    • Opportunity for Rapid Profits: Traders can capitalize on tiny increments in price throughout the day, resulting in rapid gains.
    • No Risk from After-Hours Events: There is no risk of losing money from news and global market shifts after trading hours, since all positions are closed by day’s end.
    • Certain Stocks are Highly Liquid : Due to the focus on widely-traded stocks, intraday trading allows a trader to easily buy and sell securities at the desired price.
    • Access to Leverage : Many brokers provide leverage which allows traders to take larger positions relative to their own capital.

    Disadvantages of Intraday Trading

    • High Levels of Stress and Pressure: The need to keep track and make decisions at a split second can be mentally tiring.
    • Capital at High Risk: Capital is at high risk due to high market volatility as the trader is bound to square off trades by the end of the day.
    • Reliance on Technology: Problems with the internet or the trading platforms can cause losses.

    2. Swing Trading

    In this type of trading, traders aim to earn profits from small to medium term price movements in the financial markets. The trader holds a trading position for several days or even weeks. 

    Key Features:

    In this type of trading, the trader aims to capture profits within a span of several days or weeks. This is ideal for traders who have little time to analyse the market and can hold the position overnight.

    Advantages of Swing Trading 

    • Less Demanding of Time: Unlike day trading, swing trading does not require a constant watch and is suitable for those with other commitments.
    • Exploitation of Short-Term Trends: Traders are able to take advantage of price trends that last for several days or weeks.
    • Lower Transaction Costs: In swing trading, the overall number of trades is reduced, leading to lower brokerage fees when compared to scalping and intraday trading.

    Disadvantages of Swing Trading 

    • Risk After Market Hours: Post market hours come with the risk of news or changes that makes the stocks move unexpectedly.
    • Precise Entry Timing: Here the trader needs to act exactly at the right moment to gain profits from short-term price movements as losing the right opportunity can reduce potential gains.
    • Requires Self Control: Traders must be disciplined enough not to act on emotional trades and instead stick to set plans. 

    Read Also: What is the Best Time Frame for Swing Trading?

    3. Positional Trading

    This is a trading strategy with a long-term approach where trades are kept open for months or even years.

    Key Features:

    Positional trades are done based on company fundamentals. It is not as affected by the market volatility in the near term. This is ideal for those traders who want to create wealth over a moderate time period.

    Advantages of Positional Trading 

    • Long-Term Strategy for Capital Appreciation: Traders can take advantage of extended bull markets by holding onto stocks for several months or years.
    • Reduced Trading Activity: Low trading frequency leads to lower costs and less stressful decision making.
    • Thorough Research: This style of investing is suitable for those looking to build wealth as it often includes comprehensive research.

    Disadvantages of Positional Trading 

    • Money Locked Up: Funds are rendered inaccessible for other investments due to being tied up for long periods of time.
    • Delayed Return on Investment: Does not happen instantly as increases could take months or even up to a year.
    • Long-Term Macro Risks: Long term positions make one’s investment more vulnerable to economic changes or political shifts.

    4. Scalping Trading

    This trading approach involves making numerous trades during the day in an effort to earn profits from tiny price movements.

    Key Features:

    The position is kept for a few seconds to a few minutes. It requires a disciplined stop-loss strategy to avoid a major loss. It is ideal for those traders who are fast decision-makers and have access to high-end trading terminals.

    Advantages of Scalping 

    • Numerous Chances to Profit: Traders can make a profit through small shifts in price by executing dozens or hundreds of trades a day.
    • Low market exposure: Due to their brief duration, trades have a limited exposure to after markets and overnight risks as the trades are closed in trading hours.
    • Quick Compounding: Capital can be quickly accumulated as numerous small profitable trades can give decent returns.

    Disadvantages of Scalping 

    • High transaction fees and charges: As there are a very high number of trades, the total transaction charges increases and reduces potential profits.
    • Mental Burnout: Prolonged focus and decision making involved in scalping makes it time consuming and stressful for most traders.

    Read Also: What is Scalping Trading Strategy?

    5. Momentum Trading

    This refers to buying and selling securities based on price action. Traders execute purchases based on the positive trend in stock while one may sell the stocks based on the negative trend.

    Key Features:

    Buying securities which are showing positive price movement while selling those which start to move downwards. These indicators are used for technical analysis to confirm momentum. It is best suited for traders who have the ability to observe and respond to strong movements in the market.

    Advantages of Momentum Trading 

    • Advantageous during Trend Changes: Momentum traders will take advantage of strong increases and decreases in stock prices.
    • Flexibility: The strategy can be used at any time; it can be intraday, swing, or positional.
    • Heavy Reliance on Technicals: There tend to be rules set on when to enter and exit trades, making them systematic rather than discretionary which is often the case with momentum trading.

    Disadvantages of Momentum Trading

    • Flawed assumptions: Real momentum is hard to identify, sometimes rumors lead to losses
    • Volatile Environment: Quick market shifts can suddenly turn a profitable and ideal trade into a loss.
    • Experience Required: It requires a combination of technical analysis, understanding the market and disciplined approach along with risk management. 

    Read Also: Momentum Investing: Meaning, History, Types & Advantages

    6. Options Trading 

    Options trading entails the buying and selling of options contracts. It gives buyers the right, but not the obligation, to exercise their right to buy or sell the underlying asset at the strike price. In India, we have European options, in which the right to exercise is only available at the time of expiry. 

    Options are utilized for hedging, speculation, or income generation, and provides multiple strategies such as straddle, spreads, etc. for traders across multiple market conditions.

    Key Features of Options Trading:

    • Options contracts define a strike price or exercise price, expiration date, and stipulate a premium payable by the buyer.
    • Options allow traders to make positions in relatively smaller margins. 
    • Options enable you to generate returns in bullish, bearish, or neutral markets, while helping manage risk.

    Advantages of Options Trading

    • Leverage and Cost Efficiency: Options enable traders to create trading positions with relatively less capital and enhance the potential returns. 
    • Limited Risk for Buyers: For those purchasing options, risk is minimized to the premium paid, in comparison to other leveraged instruments, risk is clearly defined for buyers at least.. 

    Disadvantages of Options Trading 

    • Complicated Learning Curve: Options are complicated when it comes to trading and the distinctive strategies and greeks that come along with it makes it exceptionally difficult for new learners to learn. 
    • Time Decay: Options have expiration dates and their worth diminishes over the course of time, resulting in losses for option buyers. It is an advantage for option sellers though.
    • Unfavorable Market Conditions: For option buyers, odds are against them. There is very less probability of turning a trade into a profitable one. And for sellers, there is infinite risk, for a very small premium they receive.

    Options trading offers unique opportunities for managing risks and realizing profits, but it requires in-depth knowledge, self-control, and risk evaluation.

    Read Also: Options Trading Strategies

    7. Commodity Trading 

    Just as stock trading shares of a company, commodity trading has to do with tangible assets. In India, the MCX and NCDEX exchanges facilitate the buying and selling of derivative instruments with underlying assets like gold, crude oil, wheat, etc. It helps in diversification, risk management, and price discovery. 

    Key Features:

    • Trading occurs under the guidelines set by SEBI, thus maintaining transparency and price efficiency during trading sessions. 
    • Traders often utilize derivative instruments such as options and futures in the commodities market, which makes it easier for speculators and hedgers.
    • The market consists of a variety of assets, these include agricultural commodities, base metals, precious metals, and energy resources. This makes it possible to achieve better diversification. 

    Advantages:

    • Portfolio Diversification: Trading commodities allows one to diversify their portfolio as these assets tend to move independently of the equities markets. It reduces overall portfolio risk and provides some protection against declines experienced in the equity portfolio. 
    • Inflation & Volatility: Traders can protect themselves against inflation as commodities prices generally surge in value during inflation, and geopolitical and economic uncertainties.
    • Leverage and High Profit Potential: Derivatives trading require relatively lower capital to create much larger positions, which enhances returns from price fluctuations.

    Disadvantages

    • High Volatility and Risk: Due to geopolitical events, supply and demand imbalances, etc. commodities experience extreme price volatility.
    • Lack of Experience and Market Insight: A grasp of the market’s drivers, details of contracts, as well as risk management strategies, require a certain level of expertise, which makes commodity trading unsuitable for novices.
    • Danger of Over-Leveraging: Leverage can help traders increase profits, but also it can increase one’s losses. A little unfavorable price shift can completely eliminate the entire capital.

    While commodity trading is a means of diversification with relatively good returns, it is also a source of considerable risk which demands thorough research, discipline, and adequate risk control measures.

    Factors to Consider before Trading

    Some of the factors to consider before trading are listed below:

    1. Understanding Yourself: One should know better which strategy best fits your needs. If you are risk-averse, short-term strategies like intraday trading may not suit you. You may favor long-term strategies like delivery and position trading which tend to be less volatile. 

    2. Time Commitment: One should know that each style of trading has its own time commitments and delivery trading doesn’t require spending too much time which is the opposite of intraday and scalping which always requires supervision and timely decisions. If you happen to work full time, this approach might not be the best fit for you, and delivery trading might fit your schedule better.

    3. Knowledge on the Market: Traders that are involved in short-term trades, such as intraday trades, should have advanced technical analyses knowledge. Ensure to educate yourself sufficiently prior to selecting a strategy.

    5. Goals for the Investment: Those seeking quick returns will more likely gravitate towards intraday or scalping strategies. But if long term wealth is the goal, then delivery trading and long-term investing would be more suitable.

    6. Emotional Control: Your preferred style of trading might challenge your ability to remain emotionally resilient. For example, fast trading leads to rapid decision making such as loss-cutting and profit-taking. Slower approaches allow for more controlled decision making and can help when dealing with volatile market conditions.

    Conclusion

    The stock market in India features traders using different trading strategies as per their individual objective, timeline, risk management, and trading horizon. Whether you are a swing trader, positional trader, or a trader pursuing intraday or scalping strategies, you need to know the advantages and disadvantages associated with each trading style. Hence, it is advised to consult a financial advisor before trading.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Top 10 Intraday Trading Strategies & Tips for Beginners
    2Intraday Trading Rules and New SEBI Regulations
    3Commodity Trading Regulations in India: SEBI Guidelines & Impact
    4List of Best Swing Trading Patterns
    5Best Options Trading Chart Patterns

    Frequently Asked Questions (FAQs)

    1. What trading style is the most secure for beginners?

      In India, delivery trading is more secure because it requires the trader to hold stocks for longer periods of time. This long term holding strategy shields the trader from the effects of short-term market volatility.

    2. Can I use any trading style listed above?

      You are free to use any trading style depending on the market state, your level of experience, and financial objectives.

    3. Is a Demat account mandatory for every kind of trading?

      Yes, a Demat account is mandatory for storing securities if you are holding onto your trading positions overnight and a trading account is necessary to buy and sell securities irrespective of the type of trading performed in India.

    4. What’s the difference between technical analysis and fundamental analysis?

      Technical analysis focuses on price movements and other market indicators while fundamental analysis looks into the company’s financials to see how well it is doing.

    5. Is there a particular regulatory body that governs trading activities in India?

      The Securities and Exchange Board of India (SEBI) regulates all trading activities and traders have to follow the associated rules and regulations for trading.

  • Monarch Surveyors & Engineering Consultants IPO Allotment Status: Check Latest GMP, Steps To Verify Status

    Monarch Surveyors & Engineering Consultants IPO Allotment Status: Check Latest GMP, Steps To Verify Status

    Monarch Surveyors & Engineering Consultants Ltd. is a civil engineering consultancy company, founded in 1992. The company offers services such as topographic survey, design, engineering, land acquisition and GIS mapping in railway, road, metro, ports and oil and gas sectors. It has 417 employees as of March 2024 and is known for its experienced management, wide client base and efficient project execution. Monarch’s SME book-building IPO is a completely fresh issue valued at ₹93.75 crore. The issue was open from 22 July to 24 July 2025 and is likely to be listed on BSE SME on 29 July.

    In this blog you will know what is GMP, how the subscription was, how to check allotment, and when will the shares come in demat.

    Monarch Surveyors & Engineering Consultants IPO – Key Details

    ParticularsDetails
    IPO Opening DateJuly 22, 2025
    IPO Closing DateJuly 24, 2025
    Price Band₹237 to ₹250 per share
    Total Issue Size₹93.75 crore (37.5 lakh shares)
    Listing PlatformBSE SME
    RegistrarBigshare Services Pvt Ltd

    Important Dates for Monarch Surveyors & Engineering ConsultantsIPO Allotment

    EventDate
    Allotment DateJuly 25, 2025 
    Initiation of RefundsJuly 28, 2025
    Credit of Shares to DematJuly 28, 2025
    Tentative Listing DateJuly 29, 2025

    Monarch Surveyors & Engineering Consultants IPO Subscription Status

    Investor CategoryShares OfferedShares Bid For Subscription
    Qualified Institutional Buyers (QIB)7,08,00012,67,38,600179.01x
    Non-Institutional Investors (NII)5,32,80016,89,22,800317.05x
    Retail Individual Investors (RII)12,40,80032,63,44,800263.01x
    Total (Public)24,81,60062,20,06,200250.65x
    Anchor Investors10,61,40010,61,4001x
    Market Maker2,07,0002,07,0001x

    Monarch Surveyors & Engineering Consultants IPO GMP (Grey Market Premium)

    GMP i.e. Grey Market Premium shows how much demand there is in the unlisted market for the IPO. This is the price above the issue price at which investors are willing to buy shares.

    What is the current GMP of Monarch Surveyors & Engineering Consultants?

    According to the InvestorGain website, the Grey Market Premium of Monarch Surveyors IPO currently remains around ₹210. This is a strong indication that the share price can reach above ₹460 at the time of listing, which has greatly increased the expectations of investors.

    What does GMP indicate ?

    GMP directly reflects market sentiment. If GMP is high, it shows that investors expect listing gains of the company. However, this is an unofficial figure and changes are possible.

    Important advice for investors 

    GMP is definitely a useful indicator, but investment decisions should not be taken only on this basis. It is also important to keep in mind factors like company fundamentals, financial data and sector growth.

    How to Check Monarch Surveyors & Engineering Consultants IPO Allotment Status

    Monarch Surveyors & Engineering Consultants Ltd is a BSE SME IPO, hence allotment status is not available on NSE website. Investors need to use Registrar or BSE website to check allotment.

    Method 1: Via Registrar Website (Bigshare Services Pvt. Ltd.)

    The allotment status of Monarch Surveyors IPO is first available on its registrar website. The registrar is Bigshare Services Pvt. Ltd., which manages the allotment process of SME IPO.

    Step-by-step process :

    • Open the website: Click Here
    • Select “Monarch Surveyors & Engineering Consultants Ltd” from the dropdown.
    • Enter the details either Application No., PAN or DP ID/Client ID.
    • Click on the “Search” button.
    • Your allotment status will be displayed on the screen (Allotted / Not Allotted).

    Method 2: Through BSE Website

    If you want to check through BSE website, follow the steps given below:

    • Open the official website of BSE
    • Select the “Equity” option.
    • Select “Monarch Surveyors & Engineering Consultants Ltd” in IPO Name (when available).
    • Enter your PAN number or Application Number.
    • Click on “Search” and view the allotment status.

    What to Do After Allotment?

    If shares are allotted :

    If you get shares in the Monarch Surveyors IPO, these shares will start appearing in your Demat account by 28 July 2025. After this, you can sell them on the listing day on 29 July 2025 or hold them. There can be a lot of volatility in the price on the day of listing, so before trading, make sure to check the live market trend in your broker app. If GMP (Grey Market Premium) remains strong before listing, then listing gains can be taken advantage of.

    If shares are not allotted : 

    If allotment is not done in your name, then your application amount will be unblocked by 28 July 2025. These funds will be unblocked in the same bank account from which you applied – i.e. account linked with UPI or Net Banking (ASBA).There is no need to fill any form for refund. You should keep checking your bank’s SMS or Email alert.

    How to check updates?

    You can use these methods to check allotment status, refund status and listing updates :

    • Login to your account through your stockbroker app and check if the shares are visible.
    • Check if the refund has been received through the UPI app.
    • You can check allotment status on the official registrar site Bigshare Services Pvt Ltd or BSE website.

    Conclusion

    Monarch Surveyors & Engineering Consultants IPO is an SME category issue which will be listed only on the BSE SME platform. If you are allotted shares, they will be credited to your demat account by July 28, 2025 and listing will take place on July 29, 2025. On the other hand, if there is no allotment, your blocked amount will be refunded by July 28. For allotment status and refund updates, you can visit the website of Bigshare Services Pvt Ltd and BSE. Keeping an eye on updates keeps you informed about whether you are allotted shares or not during the IPO process, so that you can make informed investment decisions.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Anchor Investors in IPOs – Meaning, Role & Benefits
    2How to Cancel an IPO Application?
    3Why Invest in anKey Difference Between IPO and FPOIPO and its Benefits?
    4What is Face What is the IPO Cycle – Meaning, Processes and Different StagesValue in an IPO?
    5What is NII in IPO?

    Frequently Asked Questions (FAQs)

    1. What is the listing date of Monarch Surveyors IPO?

      The listing date of this IPO is 29 July 2025.

    2. How can I check the allotment status of this IPO?

      You can check the allotment status by visiting the website of Bigshare Services with PAN or application number.

    3. On which exchange will Monarch Surveyors IPO list?

      This IPO will be listed only on BSE SME, not on NSE.

    4. When will I receive shares in my Demat account?

      If the shares are allotted, they will come to your demat account by 28 July 2025.

    5. Who is the registrar for Monarch Surveyors IPO?

      The registrar for this IPO is Bigshare Services Pvt Ltd.

  • Best Gold Stocks in India 2025 – Top Gold Companies to Invest

    Best Gold Stocks in India 2025 – Top Gold Companies to Invest

    In India, gold is valued not only as a precious metal used in jewellery but also as a reliable investment asset. In 2025, with gold prices reaching all-time highs, gold stocks, i.e., shares of companies involved in the gold industry have gained significant popularity among investors. These stocks offer a unique advantage, as they are influenced not just by the price of gold but also by the individual growth and performance of the companies themselves.

    In this blog, we discuss the best gold stocks in India, their key performance indicators along with benefits and risks of investing in them. 

    What Are Gold Stocks?

    Gold stocks are shares of companies that are directly involved in the gold business. These companies either mine gold, are engaged in refining and export, or are involved in jewellery manufacturing and retail business. In India, companies like Titan (Tanishq), Rajesh Exports, Kalyan Jewellers, MMTC and Senco Gold are the major gold stocks in this category.

    Why is the demand for gold stocks increasing?

    As gold prices have reached record levels in 2025, the demand for the best gold stocks in India has also increased rapidly. These stocks offer a dual advantage—benefiting from both the rising value of gold and the financial performance of the companies themselves. This is the reason why today’s smart investors are giving place to the stocks of the best gold companies in India in their portfolio instead of just buying gold.

    Best Gold Stocks in India 2025

    Company Current Market Price (INR)Market Capitalisation (in INR crore)52-Week High (INR)52-Week Low (INR)
    Titan Company Ltd3,4713,08,1513,8672,925
    Hindustan Zinc Ltd.4441,87,794664378
    Muthoot Finance2,6781,07,5132,7031,670
    Kalyan Jewellers59060,846795399
    Manappuram Finance27223,044285138
    MMTC Ltd6910,34713242.6
    Rajesh Exports1985,837332151
    Senco Gold Ltd.3625,918772227
    Thangamayil Jewellery Ltd.1,8725,8202,5671,523
    Vaibhav Global Ltd2393,987353178
    (Data as of 23 July 2025)

    A brief overview of the best gold stocks in India is given below:

    1. Titan Company Ltd

    Titan Company was established in 1984 as a joint venture between Tata Group and the Government of Tamil Nadu. It started with watches, but today this company is known for India’s most trusted jewelry brand Tanishq. Apart from this, brands like CaratLane, Fastrack and Mia are also part of its portfolio. Titan has constantly improved its design and quality keeping in mind the changing preferences of Indian consumers. Due to strong brand value and retail network spread across the country, this company is counted among the leading gold stocks in India today.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    6.7048.42225.14
    (Data as of 23 July 2025)

    Read Also: Titan Case Study

    2. Hindustan Zinc Ltd

    Hindustan Zinc Limited was founded in 1966 and is a subsidiary of the Vedanta Group. Its core business is zinc, lead and silver mining, but the company also extracts gold as a by‑product. It is the largest integrated zinc producer in India, and its mining operations are spread across Rajasthan. Hindustan Zinc’s production capacity, sustainable mining process and deep roots in the metals sector make it a strong and diversified gold stock option.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -29.6360.63123.55
    (Data as of 23 July 2025)

    Read Also: Hindustan Zinc Case Study

    3. Muthoot Finance Ltd

    Muthoot Finance was started in 1939 when Mr. M.G. George Muthoot started a traditional money lending business. The Kerala based company has today become India’s largest gold loan NBFC. Muthoot’s trusted brand, deep penetration in rural and urban areas and simple loan process make it the first choice for millions of customers. Its tagline “Gold loan is good” has successfully given a new identity to gold based finance in India. Strong operations and brand value make it a top gold stock India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    46.66156.17103.20
    (Data as of 23 July 2025)

    4. Kalyan Jewellers Ltd

    Kalyan Jewellers was started in 1993 by T.S. Kalyanaraman in Thrissur, Kerala. Starting from a small store, today this company is running more than 200+ outlets in India and the Middle East. Kalyan is known for its diverse designs, traditional collections and transparency. The brand has built a strong connection with customers by having many Bollywood celebrities as its ambassadors. Its large presence in Tier-2 and Tier-3 cities of India makes it a strong gold company in India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    11.68811.65698.85
    (Data as of 23 July 2025)

    5. Manappuram Finance Ltd

    Manappuram Finance was started in 1949 in Valapad, a small town in Kerala. It was founded by V.C. Padmanabhan is a traditional money lending firm. Later his son V.P. Nandakumar transformed it into a professional NBFC. Today the company is one of the leading gold loan companies in India with thousands of branches spread across the country. With the power of technology and rural reach, Manappuram has made gold-based lending affordable and fast, making it a trusted gold stock in India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    24.86188.2956.86
    (Data as of 23 July 2025)

    6. MMTC

    Metals and Minerals Trading Corporation of India was established in 1963 by the Government of India. It is one of the oldest and largest foreign trading companies in the country. It has a deep involvement in the import-export of gold and silver. The company is considered a prominent name for gold bullion trading in India and is also associated with government projects. MMTC’s business is greatly affected by government policies, but its long-standing reputation still makes it an important gold stock in India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -21.3176.10255.82
    (Data as of 23 July 2025)

    7. Rajesh Exports Ltd

    Rajesh Exports was founded in 1989 in Bengaluru and is today one of the largest gold processing companies in the world. The company controls the entire value chain from gold refining to jewelry manufacturing and retail. In 2015, it acquired the Valcambi refinery in Switzerland, further strengthening its international reach. Rajesh Exports is heavily focused on exports, and is also known for being a “zero debt” company. Its vertically integrated structure makes it a unique gold stock in India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -34.56-66.17-58.34
    (Data as of 23 July 2025)

    8. Senco Gold Ltd

    Senco Gold is a traditional jewellery brand with roots in Kolkata and is especially popular in eastern India. It was started in 1994 and has been building a customer base in Bengal and surrounding states for a long time. The company is characterized by its regional design approach and middle class friendly pricing. It has recently been listed on the stock market and is now expanding its stores across India. Local experience and new expansion plans make it an emerging gold stock India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -24.1167.4267.42
    (Data as of 23 July 2025)

    9. Thangamayil Jewellery Ltd

    Thangamayil Jewellery Ltd. was established in 2000 in Madurai, Tamil Nadu. The company is primarily engaged in the retail of gold, silver and diamond jewellery. Thangamayil has created a special identity among the customers of South India with its strong local connection and strategy of adding modernity to traditional designs. The company is known for its presence in tier-2 and tier-3 cities of Tamil Nadu, where its branches are continuously growing. The transparent business model and regional focus make it a unique place among the emerging gold stocks of India.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    9.58254.701,113.48
    (Data as of 23 July 2025)

    10. Vaibhav Global Ltd

    Vaibhav Global was founded in 1989 in Jaipur and focuses on jewellery designing and retailing in international markets. The company sells fashion jewellery in markets like the US and the UK through live TV and online channels. It operates on value-for-money products and a direct-to-customer model. The company has a limited presence in the domestic market but has made a mark in global retail. Its innovative retail approach and design-driven strategy make it a unique gold stock.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -22.43-23.15-11.23
    (Data as of 23 July 2025)

    Key Performance Indicators (KPIs)

    CompanyOperating Margin (%)Net Profit Margin (%)ROE (%)ROCE (%)Debt to Equity
    Titan Company Ltd9.075.5128.7036.931.56
    Hindustan Zinc Ltd.43.2230.3777.6963.240.80
    Muthoot Finance72.6126.4718.1547.552.55
    Kalyan Jewellers5.262.8514.8820.880.20
    Manappuram Finance52.1911.989.7841.572.85
    MMTC Ltd4,346.462,584.755.086.750.00
    Rajesh Exports0.180.112.203.290.04
    Senco Gold Ltd.5.592.518.0815.830.90
    Thangamayil Jewellery Ltd.4.092.4110.7616.600.68
    Vaibhav Global Ltd6.364.5311.3614.780.08
    (Data as of 23 July 2025)

    Smart Alternatives to Gold Stocks: Invest via ETFs & Gold Bonds

    Investing in gold stocks can be lucrative, but if you want a safer or simpler option, gold ETFs and sovereign gold bonds (SGBs) are great options. These options are not only easy but also offer significant tax and liquidity benefits.

    Gold ETFs: Gold ETFs (Exchange Traded Funds) are funds that track the price of gold. You can buy and sell them like shares in the stock market. They do not pose storage problems like physical gold and are linked to gold of 99.5% purity.

    Benefits:

    • You can own gold without having to own physical gold
    • Completely liquid can sell whenever you want
    • Investment with low expenses
    • Can start with a small amount

    Sovereign Gold Bonds (SGBs) : SGBs are issued by the Government of India and offer investors a 2.5% annual interest along with gold prices. These bonds have a tenure of 8 years and can be redeemed without capital gains tax.

    Benefits :

    • Gold returns along with interest income
    • Tax relief (exemption from capital gains tax)
    • Protection from government guarantee
    • No need for physical gold

    Benefits of Investing in Gold Stocks

    Benefits of investing in gold stocks is given below:

    • Potential for Long-Term Wealth Creation : Investing in gold stocks is not just linked to the price of gold, but also to the growth of the company. If the company’s sales, brand and profits grow, the share price can also give good returns in the long term.
    • Hedge Against Inflation : When inflation rises and the rupee weakens, gold and its associated companies often perform well. Therefore, gold stocks act as a balance and protection in the portfolio.
    • Dual Benefit: Equity + Gold Exposure : Investing in gold stocks gives you two types of benefits one, from the price of gold and second, from the business growth of that company. This gives the possibility of double returns.
    • Liquidity & Easy Trading : Compared to gold jewellery or physical gold, gold stocks can be easily bought or sold through the stock market at any time. This makes the investment more flexible.
    • No Storage or Making Charges : Like physical gold, it does not require any locker, security measures or making charges.

    Risks of Investing in Gold Stocks

    Gold stocks are considered an attractive investment option, but they also carry some significant risks that need to be understood. Below are four key risk points that any gold stock investor should keep in mind:

    • Gold Price Fluctuation Risk : The international price of gold depends on factors such as the dollar, interest rates and global events. When the price of gold falls, it directly affects the sales and profits of gold companies.
    • Regulatory Risks : The Government of India changes the duty, tax or trade policy on gold imports from time to time. Any such change can affect the cost and profit of companies.
    • Global Market Volatility : Gold is an international commodity, so economic uncertainty, war, or inflation trends in the global market also affect gold stocks. Investors should make decisions keeping this global connection in mind.
    • Liquidity Risk : Some small or mid-cap gold companies have less trades in the stock market. In such a situation, it may be difficult to sell shares when needed or it may be difficult to find a buyer at the right price.
    • Demand-Supply Risk : The demand for gold is affected due to festivals, wedding season and fluctuations in global demand. If the demand decreases, both the sales and profits of the companies can decrease.
    • Operational Risks : Problems like disruption in production, strike of employees or technical faults are common in companies related to mining or refining, which can have a negative impact on the stock.
    • Market Sentiment Risk : Many times the performance of gold stocks also depends on the sentiment of investors or news-driven sentiment. Rumors or false news can cause stocks to fall sharply, even if the company’s fundamentals are good.

    How to Invest in the Best Gold Stocks (with Pocketful)

    • Open a Demat & Trading Account : The first step to start investing in gold stocks is to open a Demat and trading account on a trusted platform. You can easily complete this process by opening a demat account with Pocketful.
    • Research and Shortlist Quality Gold Stocks : Research companies whose business is directly related to gold, such as jewellery manufacturing or gold retailing, and look at their long-term prospects.
    • Analyze Company Fundamentals : Analyze the company’s financials, business model, growth potential and position in the sector in depth to make an informed investment decision.
    • Start Investing via Pocketful : With Pocketful, you can invest in gold stocks without any brokerage fees. Its simple interface and safe process is suitable for all types of investors.
    • Monitor and Review Regularly : Once you invest, review the portfolio regularly and make changes if needed to optimize returns.

    Read Also: Gold ETF vs Gold Mutual Fund: Differences and Similarities

    Conclusion

    Investing in gold has now gone beyond the traditional methods. Today, investors can also invest in businesses related to gold through shares, ETFs and bonds. While gold stocks offer the opportunity for higher returns, ETFs and bonds are considered better for stability and diversification. With the right research and strategy, gold can prove to be a strong option for long-term investment. However, it is advised to consult a financial advisor before investing.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1A Guide To Investing In Gold In India
    2List Of Best Jewelry Stocks in India
    3How to Invest in Gold ETF – Benefits, Risks and Charges
    4Top 10 Reasons to Invest in Gold
    5Best Silver Stocks in India

    Frequently Asked Questions (FAQs)

    1. What are gold stocks in India?

      Gold stocks in India are companies that manufacture gold jewellery, sell it in retail or are involved in gold trading.

    2. Is it safe to invest in gold stocks?

      Yes, if you have chosen a fundamentally strong company and have a long term view then it can be a safe option.

    3. Which is better: gold ETF or gold stocks?

      ETFs are more stable while gold stocks have higher potential for growth and returns.

    4. Can I invest in gold stocks without buying physical gold?

      Yes, you do not need to buy physical gold to invest in gold stocks.

    5. Do I need a Demat account to invest in gold stocks?

      Yes, a demat account is required to buy gold stocks.

    • Open Free Demat Account

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