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How AI and Machine Learning Are Transforming Trading Strategies?

The way markets are traded have been undergoing a rapid transformation since the past few years. Smart systems based on AI (Artificial Intelligence) and machine learning are now taking decisions instead of humans. These technologies are making trading faster, more accurate and data-driven.

In this blog, we will learn how AI and Machine Learning can take your trading strategies to the next level along with their benefits, risks and real world case studies.

What is AI and Machine Learning in trading?

Now trading is not limited to just looking at charts or reading news and making decisions. In today’s era, tools like AI (Artificial Intelligence) and Machine Learning (ML) are revolutionizing the world of trading. Simply put, AI is the technology that has the ability to think and learn like humans, while Machine Learning is a branch of AI that learns on its own from data and gets better over time as the data points increase.

When these technologies are used in trading, the computer systems read, analyse and millions of market data points such as stock price movement, volume, news headlines, and social media trends to detect patterns, helping traders make accurate buy-sell decisions. In some cases, traders don’t even type in orders as algorithmic systems send buy and sell orders almost instantaneously.

How are AI and ML used in Trading?

Price Prediction : AI analyzes price data from the past several years to predict what the next movement of a stock might be. For this, time-series models like LSTM (Long Short-Term Memory) are used.
Sentiment Analysis : AI systems today use platforms like Twitter, news sites and Reddit to find out what the market participants are thinking about a stock—positive, negative or neutral. This helps the trader understand the crowd’s attitude towards the stock.
Risk Management : AI systems continuously monitor real-time market data and can instantly detect unusual price movements or trading volumes. This allows for early alerts before significant losses occur, enabling faster, data-driven risk management.
Portfolio Optimization : AI gives smart portfolio suggestions by keeping in mind which stock should get how much weightage in your portfolio, which sector has overexposure, or which asset is giving returns.

Which ML models are used in Trading?

Supervised Learning (learning from labeled data) : These models such as Linear Regression, Decision Trees, etc. learn to take future decisions by learning from past data and their results.
Unsupervised Learning (catching patterns from unlabeled data) : Models like K-Means Clustering identify hidden patterns in the data – like which stocks behave similarly or when the market goes into different phases.
Deep Learning (understanding big and complex data) : Advanced models like Neural Networks are built to understand very large and rapidly changing data. These are very useful in HFT (High Frequency Trading) and image-based chart analysis.

From Intuition to AI: Evolution of Trading Strategies

Below is a brief history of how trading, a process traditionally based on chart reading and instincts, is now impacted by AI.

1. Discretionary Trading

In the beginning, trading as a process was completely done by humans. Traders would read news, analyze charts and decide to buy or sell based on their experience. In this process, emotions like greed, fear or overconfidence often had an effect, which sometimes led to losses. The biggest challenge was the slow decision making and the risk of human error.

2. Algorithmic Trading

The trend of algorithmic trading started after 2000. In this, computers themselves placed trades according to pre-coded rules. This made trading faster and also disciplined.

According to the SEBI report in India, by 2024, about 50-55% of orders in the equity and derivatives segment are being processed through algo systems. However, these algorithms have pre-defined rules and may not be able to adjust according to suddenly changing market conditions.

3. AI and Machine Learning

Today we are at a point where AI and ML have made trading really easy. Now the systems do not just follow the given rules, but learn patterns from the data themselves, improve them and also update themselves according to the changing market environment. AI models can process real-time data such as news, social media trends, price movements simultaneously and that too in a few seconds. For example, large institutions such as Two Sigma, Renaissance Technologies and Citadel are now trading substantial capital based on AI driven models.

In today’s trading, rule-based systems alone do not work. Now there is a need for adaptability – that is, a system that improves itself by learning from new information every second; and this is what AI is doing in the trading process.

How AI and ML are changing Trading Process

AI and ML are transforming the trading process in the following ways:

1. Smart stock selection and timing

Models like LSTM and XGBoost read historical price, volume and technical indicators and determine “when should you buy or sell a stock.” LSTM models achieved 92.46% accuracy in forecasting 1-day S&P 500 price movements in 2024.

2. Understanding market sentiment

AI is now scanning financial news to understand whether the discussion about a stock is positive or negative. This text analysis is done using NLP based models like FinBERT or GPT.

3. Smart portfolio rebalancing

Reinforcement learning models automatically rebalance your portfolio over time, taking into account your risk profile and goals. This technology is being used in artificial intelligence systems by Fidelity and BlackRock.

4. Managing Risk

AI-based Anomaly Detection systems spot hidden patterns or sudden changes in a stock. J.P. Morgan’s AI-driven anomaly detection platform slashed average time to detect market anomalies from 40 minutes to under 5 seconds, enhancing real-time risk management.

5. High-Frequency Trading (HFT)

AI is now playing a key role in HFT as well, where orders are executed in milliseconds. The global HFT market size was valued at USD 20.97 billion in 2024 and is forecast to grow to USD 74.35 billion by 2030 (CAGR 15.1%).

6. Ultra‑Low‑Latency Infrastructure

Traders now have servers that are just microseconds away from the exchange. The HFT server market size in 2024 was $637 million and is projected to be around $675 million in 2025.

7. Competition for AI talent in hedge funds

Top hedge funds offer huge base packages to AI engineers as they know that AI-based models will drive increasing alpha.

Real-World Case Studies: How Top Firms Use AI in Trading

1. Renaissance Technologies (Medallion Fund)

Renaissance Technologies is perhaps the world’s most mysterious and successful hedge fund. It was started in 1982 by Jim Simons, a former NSA cryptographer and math genius. Its Medallion Fund returns are legendary, having delivered an average of 66% gross returns over from 1988 to 2018. The difference is that here, not humans, but machines make trading decisions. This fund scans every possible data such as satellite images, shipping logs, even weather trends. By 2025, its AUM was close to $130 billion. But the Medallion Fund is open only to the firm’s employees. Perhaps that is why its strategies remain completely secret even today.

2. Two Sigma

Two Sigma is a New York-based hedge fund focused on pure AI and data science. It was founded in 2001 by David Siegel and John Overdeck, both hardcore computer scientists. Two Sigma analyzes massive volumes of data every day related to social media trends, satellite feeds, even real-time supply chain shifts to refine its trading models. Its AUM in 2025 was around $74.44 billion. Most of the people working here are PhDs in mathematics, machine learning, and statistics. Today, it is considered one of the most advanced quant funds in the world.

3. Citadel

Citadel, founded by Ken Griffin in 1990, today leverages AI and machine learning to power its trading decisions. It is headquartered in Chicago and has an AUM of over $100 billion in 2025. Citadel’s biggest strength is its ultra-fast data processing capability, which analyzes market signals in milliseconds. The firm uses massive alternative data such as consumer transaction data, satellite imagery, and web scraping. Citadel’s AI ecosystem is so robust that it refines its algorithms daily to adapt quickly to market volatility.

4. J.P. Morgan (LOXM AI Platform)

J.P. Morgan has made AI and machine learning core to trading and portfolio management, particularly through its LOXM (Liquidity Optimization Machine) platform. LOXM is an advanced AI system that smartly executes client orders by analyzing market conditions in real-time. The company has increased the use of generative AI and NLP to improve research automation and fraud detection. Moreover, J.P. Morgan AI Research program has also released dedicated frameworks on AI bias and ethics in financial markets in 2024. This shows that the firm equally values responsible AI along with innovation.

Benefits of using AI in Trading

The benefits of using AI in trading is given below:

Faster & Accurate Decisions : AI scans millions of data points in real-time and executes trades in fractions of seconds. This also gives them an edge over others to capitalize on short-term volatility and improves market timing.
Big Data Utilization : AI trading tools can analyze both structured and unstructured data such as financial news, tweets, earnings reports to gain broader insights that may be missed by humans.
Self-Learning Models : Machine learning models learn from historical trends and upgrade themselves with every new data input. This allows trading strategies to evolve over time.
Automation & Operational Efficiency : AI automates repetitive tasks such as backtesting, rebalancing, or risk management. This reduces the need for human resources and makes execution more efficient.
Scalability and Diversification : AI can track multiple markets and asset classes simultaneously—be it forex, commodities or crypto. This makes the portfolio more diversified and balanced.
Freedom from human bias : Emotion-driven trading decisions such as selling out of fear or overtrading out of greed do not occur in AI. This maintains rational decision-making.

Challenges and Risks Associated with AI Trading

The challenges and risks associated with using AI in trading is given below:

Data Quality & Reliability : AI relies heavily on historical and real-time data. If the input data is inaccurate or outdated, it can lead to wrong decisions. Availability of reliable financial data is still a big challenge, especially in developing markets like India.
Model Overfitting and Over-Dependency : Machine learning models can sometimes become too finely tuned to historical data, a problem known as overfitting. When this happens, the model struggles to adapt to new market trends or shifts in macroeconomic conditions. This rigidity increases the risk of failure in dynamic or unforeseen scenarios, highlighting the importance of continuous model validation and adjustment.
Unexpected Market Behavior : AI trading systems may react in an unpredictable way to fast-moving markets. The 2010 Flash Crash is a prime example of this, where algorithmic trades caused the U.S. market to crash in minutes.
Black Box Models and Lack of Explainability : Trading logic behind decisions made by AI models like neural networks are often not explainable. This means why and how a trade was initiated is difficult to answer, which is a concern for both investors and regulators.
Data privacy and security risks : AI trading systems process sensitive financial data through APIs, cloud services, and third-party vendors. This increases the risk of data breaches or cyberattacks.

Conclusion

Artificial Intelligence and Machine Learning are no longer just tools for tech experts as they’re now helping traders make faster, smarter, and more accurate investment decisions. But blindly following AI is not the right approach. It is important that you understand its limitations, verify the data source and use it judiciously. The real strength lies in blending human intelligence with smart technology. In today’s markets, staying curious, informed, and questioning the signals generated by trading systems is what truly sets great traders apart.

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2	Trading For Beginners: 5 Things Every Trader Should Know
3	Top Algorithmic Trading Strategies
4	Best Artificial Intelligence (AI) Stocks In India
5	What is Algo Trading?

Frequently Asked Questions (FAQs)

What is AI investing in simple terms?
AI investing is a process in which machines use historical data and algorithms to make investment decisions.
Can AI guarantee better returns?
No, AI can help you achieve better returns but cannot guarantee better returns.
Is AI trading suitable for beginners?
Using AI for trading may require substantial hardware requirements and technical expertise making it unsuitable for beginners.
Can AI replace human advisors completely?
AI excels at data processing and pattern recognition, but human oversight remains essential for strategic decision-making, risk management, and regulatory compliance
Is AI trading regulated in India?
SEBI introduced comprehensive algorithmic trading regulations in February 2025, requiring algorithm registration, unique identifiers for trades, etc.

July 22, 2025

Top 10 Mutual Fund Distributors in India

India’s mutual fund industry reached a historic AUM (Assets Under Management) of ₹74.79 lakh crore in June 2025, showing an unprecedented growth of about 22–23% over the previous year. With this rapid expansion, choosing the right mutual fund distributor is more critical than ever. Whether you’re searching for the top mutual fund distributors in India, the biggest industry players, or reliable personal advisors and brokers, making an informed choice can significantly impact your investment journey.

In this guide, we will discuss the most trusted and trending mutual fund distributors of 2025 that can help make your investment journey easier.

Who are Mutual Fund Distributors?

Mutual fund distributors are individuals or institutions that help investors invest in different mutual fund schemes. These distributors are registered with AMFI (Association of Mutual Funds in India) and work under an ARN (AMFI Registration Number). Their job is to suggest the right scheme, help with documentation and provide investment related information to their clients.

Types of Mutual Fund Distributors

Institutional Distributors: Such as NJ Wealth, Prudent, ICICI Securities etc. who do sell mutual funds on a large scale.
Bank Distributors: Such as banks like SBI, HDFC, Axis who have the advantage of branch network.
Fintech Platforms: Such as Groww, Zerodha, ET Money which sell mutual funds through digital channels.
Individual ARN Holders: Independent financial advisors who provide personal guidance on a small scale.

Top 10 Mutual Fund Distributors in India 2025

Distributor Name	Distributor Type	AUM (FY 25) (₹ Cr)	Coverage & Highlights
State Bank of India	Bank	1,73,756	Largest network, deep penetration among rural investors
NJ Wealth	National Distributor	1,60,999	33,000+ ARN holders, digital and in-person support
HDFC Bank	Bank	1,19,188	Extensive branch network and reliable customer service
Axis Bank	Bank	74,290	User-friendly app, faster digital growth
Prudent Corporate	Institutional Distributor	69,785	31% growth rate, Pan-India branch network
ICICI Bank	Bank	55,749	Extensive branch network and digital reach
Kotak Mahindra Bank	Bank	46,100	Focus on HNI and mid-level investors
360 ONE Distribution Services	Institutional Distributor	29,905	75% YoY Growth, App-based wealth management
Anand Rathi Wealth	Institutional Distributor	28,342	Targeted advice for NRI and HNI investors
HSBC Bank	Bank	26,546	18% year-on-year growth

Overview of the Top Mutual Fund Distributors in India

An overview of the top 10 mutual fund distributors in India is given below:

1. State Bank of India

SBI leads the mutual fund distribution industry in India with an AUM of ₹1,73,756 crore. It offers equity, debt, hybrid and ETF schemes. SBI’s strength is its extensive branch network, which helps it offer investment schemes to every corner of the country—city and village. Their Balanced Advantage and Bluechip Fund are preferred investment choices among common investors.

Read Also: SBI Case Study

2. NJ Wealth

Started in 2000, NJ Wealth has today become the country’s largest fund distribution network with 33,000+ ARN holders and an AUM of around ₹1,60,999 crore. Schemes of many AMCs are available at one place on its platform. The mix of tech-enabled and personal dealing makes it a trusted choice among investors.

3. HDFC Bank

HDFC Bank mutual fund distribution segment, with assets under management of ₹1,19,188 crore, maintains a strong presence in the distribution landscape through its extensive banking channels and reputation for reliable customer service. Its schemes—such as Flexi Cap and Balanced Advantage offer predictable returns. Its digital reach along with its branch network has made HDFC a trusted asset among retail investors.

Read Also: HDFC Bank Case Study

4. Axis Bank

Axis Bank’s mutual fund distribution segment has an AUM of around ₹74,290 crore. This AMC is known as the digital avatar of mutual funds with research-driven equity funds and strong SIP growth campaigns. Bluechip and Midcap are its key identities.

Read Also: Axis Bank Case Study

5. Prudent Corporate

Prudent Corporate, holding ₹69,785 crore in AUM, is noted for its rapid growth rate and robust pan-India branch network. It operates primarily on the IFA network and offers client-customized digital tools. Its presence in Tier‑2/3 cities is steadily growing.

6. ICICI Bank

ICICI Bank’s mutual fund distribution business, with an AUM of ₹55,749 crore, relies on a multi-channel model that combines its extensive branch network with robust digital offerings, delivering mutual fund solutions to a broad spectrum of clients. With funds like Balanced Advantage and Bluechip Equity leading the way, its distribution network offers investors access to a wide range of mutual fund schemes, supported by consistent performance and strong brand trust.

Read Also: ICICI Bank Case Study

7. Kotak Mahindra Bank

Kotak Mahindra Bank The bank’s mutual fund distribution business has an AUM of ₹46,100 crore. The bank’s mutual fund distribution team utilizes the bank’s brand name, branch network and digital channels to effectively reach its client base.

8. 360ONE Distribution (ET Money)

360 ONE Distribution Services reports an AUM of ₹29,905 crore. Recognized for its substantial year-on-year growth, this institutional mutual fund distributor employs app-based wealth solutions and has developed a reputation for technological innovation in serving affluent and HNI clients.

9. Anand Rathi Wealth

Anand Rathi Wealth, with an AUM of ₹28,342 crore in mutual fund distribution business, focuses predominantly on NRI and HNI clients. The firm is acclaimed for its professional research, personalized advice, and broad spectrum of wealth management services, including mutual funds and portfolio management.

10. HSBC Bank

HSBC Bank is among India’s leading mutual fund distributors, managing approximately ₹26,546 crore in AUM as of FY 2023–24. Leveraging its global expertise and strong digital platform, HSBC delivers curated multi-AMC mutual fund solutions to retail and affluent clients

Top 10 Individual Mutual Fund Distributors in India

Rank	ARN Holder Name	AUM (₹ Cr, FY 2024)
1	Gaurav Ganpule	₹1,887 Cr
2	Ganesh Shanbhag	₹1,494 Cr
3	Ranjan Panigrahi	₹1,251 Cr
4	Sadashiv Phene	₹1,079 Cr
5	Mukund Sheshadri	₹1,020 Cr
6	Hari Kamat	₹979 Cr
7	Jennifer Mendes	₹892 Cr
8	Sandeep Borse	₹884 Cr
9	Harish Kotian	₹829 Cr
10	Ajay Mishra	₹828 Cr

How to Choose the Right Distributor in

As important as it is to invest in mutual funds, it is equally important to choose a reliable mutual fund distributor. In 2025, market competition and the growing number of digital platforms have given investors many options. But the right choice is the one that strikes a balance between your investment goals, convenience, and cost.

Verify ARN registration and validity : All mutual fund distributors must be registered with AMFI (Association of Mutual Funds in India). Verify whether the distributor’s ARN number is valid and active by visiting the AMFI website.
Experience and quality of investment advice : Choose a mutual fund distributor who can provide you additional services like goal-based investing, risk profiling, and periodic portfolio reviews. Years of experience and client retention are important indicators.
Digital platforms : A good mutual fund distributor gives you an easy-to-use digital platform — where you can track your funds, manage SIPs, and easily buy or sell when needed. Also look at the security features and user interface of the app.
Reporting and data transparency : Does the distributor regularly provide you with Consolidated Account Statement (CAS), Portfolio Report and Tax Summary? All these reports help in your financial planning and monitoring.
Client support and response time : A professional distributor should respond to your queries in a timely manner. Check if they have a dedicated support team and whether they provide regular follow-ups and updates.
Variety of product coverage and advice : The distributor should not be limited to just 1–2 AMCs. It is better to find a distributor who provides you access to mutual funds from multiple AMCs.

Conclusion

Mutual fund investing offers a wide range of choices, but not all are aligned with your financial goals, risk profile, or time horizon. That is why it is important to select a reliable mutual fund distributor who understands your needs and helps you make better decisions. Advice, platform features, and tracking tools—all these aspects are now as important as the performance of the mutual fund itself. So, select your mutual fund distributor carefully and begin investing in mutual funds today after consulting your investment advisor.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
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3	What is an Open-Ended Mutual Fund & How to Invest in it?
4	How to Invest in Mutual Funds?
5	Equity Mutual Funds: Meaning, Types & Features

Frequently Asked Questions (FAQs)

What is a mutual fund distributor?
A mutual fund distributor is a person or institution that acts as an intermediary, helping investors buy, sell, and manage mutual fund investments.
How do I check if a distributor is registered?
To check whether the distributor is registered or not, you can visit the AMFI website and enter their ARN number and verify the details.
Are online platforms better than traditional distributors?
If you prefer digital convenience and investing on your own, then online platforms may be a better option.
Do mutual fund distributors charge fees from investors?
No, in the regular plans their commission is paid by the AMC, no separate charges are taken from the investor.
Can I switch my mutual fund distributor later?
Yes, you can change your distributor or transfer to a direct plan anytime you wish.

July 22, 2025

Best Data Center Stocks in India 2025

Every digital click, stream, and swipe runs through one thing: data centers. As India embraces cloud computing, AI, and 5G, data centers have emerged as the silent engines powering this digital transformation. This is the reason data center companies in India are gaining serious traction.

Backed by rising demand and government’s push for digital infrastructure, several NSE-listed companies are stepping into the spotlight. In this blog, we discuss the top data center stocks, benefits of investing in them and their key performance ratios.

What Are Data Center Companies?

Data center companies in India are the backbone of the country’s fast-growing digital infrastructure. They build and operate high-performance facilities that store, manage, and process massive volumes of data for businesses, governments, and tech platforms. As demand for digital services rises, so does investor interest in data center stocks in India.

Core functions of data center companies include:

Hosting enterprise-grade servers and storage
Ensuring 24/7 services for smooth working
Working on highest level of data security and safety
Ensuring maximum level of uptime
Supporting cloud computing, AI, and IoT ecosystems
Complying with data privacy and other norms

These companies are driving India’s digital transformation, making them increasingly attractive investment opportunities.

List of the Best Data Center Stocks

Though there are numerous data center companies in India, a few stand out and are listed too. So, here is the list of the top NSE listed data center companies in India that you must consider while investing.

Company Name	Current Market Price (₹)	Market Capitalization (₹ Crores)	52-Week High (₹)	52-Week Low (₹)
Tata Communications	1,733	49,403	2,175	1,291
Anant Raj	601	20,637	948	366
RailTel Corporation of India	410	13,173	562	265
Netweb Technologies India	1,940	10,986	3,060	1,252
Black Box	534	9,051	716	321
Aurionpro Solutions	1,600	8,826	1,992	1,249
E2E Networks	2,482	4,957	5,488	1,569
Marine Electricals (India)	193	2,666	333	139
Orient Technologies	340	1,414	675	247
Allied Digital Services	179	1,013	320	158

(Data as of 17 July 2025)

Read Also: Best Metaverse Stocks in India

Overview of the Top Data Center Stocks in India

An overview of the top 10 data stock companies in India is given below:

1. Tata Communications

Tata Communications is a global digital ecosystem enabler and a major force in India’s data center and cloud infrastructure landscape. Headquartered in Mumbai, it handles 30% of the world’s internet routes and connects businesses with 80% of top cloud companies.

Tata Communications operates 44 global data centers across four continents with nearly 1 million square feet of colocation space. Their Vayu Cloud platform integrates IaaS, PaaS, AI services, and NVIDIA GPUs, delivering up to 30% cost savings. The company provides managed hosting, disaster recovery, and hybrid cloud solutions with 99.95% uptime, supporting enterprises through their globally integrated IP network and submarine cable infrastructure.

Tata Communications is among the top data center stocks in India. It runs undersea fiber networks and offers trusted services like cloud, networking, and data centers in over 190 countries.

2. Anant Raj

Anant Raj Limited has been around for over 50 years, building everything from homes and offices to malls, hotels, and IT parks. It is mostly across the Delhi-NCR region. Lately, they’ve also stepped into the world of data centers. This is the reason why they stand out.

Anant Raj operates scalable data center infrastructure with expertise in constructing expansive campuses ranging from 64 to 150+ MW capacity. Their data centers are designed for flexibility and adaptability, enabling clients to achieve sustained growth within existing infrastructure. The company provides customized solutions with proven campus models that expedite time-to-market, delivering operational white space within six months. They are now focusing on IT and cloud infrastructure to become a key name in India’s growing digital space.

3. RailTel Corporation of India

RailTel Corporation of India Ltd is a government company under the Ministry of Railways. It’s one of the biggest companies in India that builds and manages internet and telecom systems. RailTel has laid more than 67,000 km of optical fiber along railway tracks and connects over 11,000 places with its network. It also runs 1,100+ telecom towers all over the country.

RailTel operates Tier-III certified data centers in Secunderabad and Gurugram, both certified by Uptime Institute USA with 99.982% SLA uptime assurance. Their facilities provide co-location, managed hosting, cloud computing (IaaS, PaaS), disaster recovery, and security services. RailTel’s data centers feature multi-layered security, backup services, and support government data localization requirements with 24×7 monitoring and management

They provide useful services like broadband internet, leased lines, cloud services, video calls for offices, and public Wi-Fi at more than 6,000 railway stations. RailTel is playing a big role in bringing internet access to remote areas and helping build India’s digital future.

4. Netweb Technologies India

Netweb Technologies India is one of the finest data center stocks offering high-end computing solutions, specializing in supercomputing systems, data center servers, private and hybrid cloud infrastructure, and AI systems. The company offers managed cloud services, cloud migration, and high-performance storage, serving sectors like IT, BFSI, government, defense, and research.

Netweb Technologies operates comprehensive data center solutions through their ‘Tyrone’ brand, offering supercomputing systems, dual processor servers, and private cloud infrastructure. Their data centers feature high-performance storage capable of 10 million IOPS and 100 GBps throughput, scalable to 1,000 petabytes. They provide integrated hardware-software stacks, managed cloud services, and specialized AI systems for enterprise computation users.

With over 20 years of experience and integrated design and manufacturing capabilities, Netweb customizes technology solutions under its Tyrone brand and is recognized for its customer-centric approach and “Made in India” focus.

5. Black Box

Black Box, earlier called AGC Networks, is a global tech company based in Navi Mumbai. It helps over 8,000 clients across 25 countries and has 14 service centers in India and 75 around the world.

Black Box provides comprehensive hyperscale data center infrastructure services globally, specializing in building cutting-edge facilities across wide geographic footprints. Their operations include end-to-end infrastructure solutions, structured cabling (fiber and copper), power distribution, network architecture, and security integration. They offer ongoing operations support, 24/7 monitoring, equipment installation, and maintenance services with proven methodologies for repeatable results.

They work with banks, hospitals, tech companies, and government offices, offering support in networking, cybersecurity, cloud services, and other IT needs. With a team of 4,000+ professionals, Black Box is trusted for managing big and important tech projects across the globe.

6. Aurionpro Solutions

Aurionpro Solutions Founded in 1997, this is a well-known technology company with its main office in Navi Mumbai. It works to provide advanced solutions for banking, payments, transit, data center services, and the government sectors. It delivers enterprise AI, hybrid cloud, and managed IT services to over 300 clients worldwide, leveraging deep domain expertise and proprietary technology.

Aurionpro Solutions provides data center infrastructure services as part of their comprehensive technology portfolio. Their data center operations support banking, government, and enterprise sectors with focus on digital transformation and proprietary technology solutions. The company is publicly listed and recognized for its innovation-driven, customer-centric approach in both domestic and international markets.

7. E2E Networks

E2E Networks is a leading Indian AI-first hyperscaler, i.e. a company that specializes in advanced cloud GPU infrastructure and cloud computing services. Founded in 2009 and listed on the NSE, E2E offers scalable, high-performance solutions for AI/ML, NLP, computer vision, and generative AI workloads.

The company’s platform features cutting-edge NVIDIA GPUs (A100, H100, H200) and enables rapid, contractless deployment for startups, enterprises, researchers, and public sector organizations. E2E Networks is recognized for its predictable pricing, compliance with Indian data laws, and its role in supporting India’s AI and digital transformation initiatives.

8. Marine Electricals (India)

Marine Electricals has built a strong reputation in the electrical and automation space. It is working in areas like marine, industrial, commercial buildings, and data centers. They provide turnkey electrical systems, from power setups to smart building management.

Marine Electricals provides integrated electrical and automation solutions for data centers as part of their industrial segment operations. Their data center services include low and medium voltage power distribution solutions, intelligent PMCCs, EMS solutions, and electrical infrastructure management. The company leverages 40+ years of experience in electrical systems to deliver turnkey solutions for data center power and automation requirements.

As part of the growing data center stocks in India, Marine Electricals is known for its engineering capabilities, quality manufacturing, and project execution expertise. It supports data center infrastructure with the best solutions for both domestic and international clients.

9. Orient Technologies

Orient Technologies offers comprehensive data center solutions including compute and storage infrastructure, virtualization, servers, storage, HCI, and backup services. Their operations span cloud services, cybersecurity, networking components, and digital transformation services. The company provides 24/7 managed services, multi-vendor support, and specialized data center consulting across pharmaceutical, healthcare, BFSI, and government sectors with focus on scalable, secure environments.

As part of the emerging data center companies in India, Orient Technologies is silently creating a big name in the Indian enterprise sector. It also partners with leading OEMs to deliver efficient data center solutions. Its expertise spans consulting, integration, and ongoing support.

10. Allied Digital Services

This is a globally recognized leader in digital transformation and IT infrastructure services. It is headquartered in Mumbai. With over four decades of experience, the company operates in 90 countries and serves diverse industries with solutions spanning data center migration, cloud computing, managed security, and smart city projects.

Allied Digital Services operates Tier III/IV SAS 70 compliant data centers with strategic facilities in multiple US and India cities. Their data center services include hosting, migration, 24x7x365 monitoring, disaster recovery with RPO/RTO under 2 hours, and comprehensive security compliance (PCI, SOX, HIPAA). They provide robust environments, backup services, and complete infrastructure management with dedicated support.

They’re experts in running command centers, setting up data centers, and improving enterprise technology systems. Their all-in-one service approach makes them a reliable name in the digital transformation space.

Key Performance Indicators (KPIs)

Here is a quick view of the KPIs of the top data center stocks in India.

Company Name	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Tata Communications	9.11	6.41	60.78	14.96	3.60
Anant Raj	24.34	20.46	10.23	10.57	0.11
RailTel Corporation of India	12.26	8.62	14.99	19.20	0.00
Netweb Technologies India	13.75	9.96	21.58	29.28	0.00
Black Box	7.19	3.54	26.98	25.09	0.86
Aurionpro Solutions	19.76	16.06	12.38	14.73	0.01
E2E Networks	46.35	28.96	2.98	4.55	0.01
Marine Electricals (India)	8.66	4.96	9.51	15.15	0.12
Orient Technologies	8.24	6.00	15.29	20.40	0.00
Allied Digital Services	8.55	3.99	5.33	9.66	0.12

(Data as of March 2025)

Read Also: Best Silver Stocks in India

Benefits of Investing in Data Center Stocks

If you’re looking for smart ways to grow your money, data center stocks in India are worth checking out. Here’s why:

1. Strong Growth Potential

Watching Netflix or storing files on the cloud, everything streamed or stored online needs a data center behind it. As more people use the internet and businesses go digital, the need for data centers is only going to grow. That means more opportunities for these companies and your investment to grow.

2. Diversification

This sector includes companies that are infrastructure providers, cloud hosts, equipment manufacturers, and cybersecurity firms. By investing a small amount in multiple companies, investors can diversify their portfolios. All this reduces risk, while staying invested in a high-growth industry.

3. Resilience

Data centers are essential. Whether it’s a bank, hospital, or a simple shopping app, they all need reliable data center services. These companies, hence, have stable demand even during economic downturns.

4. Government Support

India is going big on digital growth and wants to reduce the reliance on foreign data center service providers to protect the privacy of Indian users. This gives data center companies a strong push, making them a good investment opportunity.

5. Innovation and Sustainability

Emerging technologies like artificial intelligence and green energy are transforming data centers, making them smarter, more efficient, and environmentally sustainable. Investing in this space means not only tapping into growth, but also aligning with the future of tech and clean infrastructure.

Hence, data center stocks give strategic opportunities for long-term growth.

Disadvantages of Investing in Data Center Stocks

While data center stocks in India look promising, it is always better to consider all aspects. Some of the key cons of investing in these are:

1. High Capital Requirements

Setting up data centers isn’t cheap. They need tons of equipment, strong internet connections, cooling systems, and regular hardware updates. All this takes a lot of money up front, which can affect the company’s profits.

2. Regulatory Risks

Data centers deal with a lot of sensitive information. Hence, they have to follow strict rules about privacy and security. If the government changes any data laws, companies might need to spend more just to stay compliant.

3. Intense Competition

The sector attracts strong competition from global and domestic players. That means it is harder for small companies to stay competitive.

How to Invest in Data Center Stocks?

Investing in data center stocks in India is simple when you use platforms like Pocketful. Here are the steps to begin your journey confidently.

1. Create Your Demat Account

Sign up on Pocketful by completing the quick KYC process. Submit all the required documents and information to open your demat and trading account.

2. Explore Listed Data Center Stocks

Use the Pocketful platform to explore NSE-listed data center stocks in India. Review detailed company profiles, market data, and analyst insights to make informed choices.

3. Analyse and Compare

Compare shortlisted companies based on their financial health, growth potential, data center capacity, and recent performance trends.

4. Place Your Order

Once decided, place your buy order directly through Pocketful’s user-friendly mobile app. The order can either be a limit order or a market order.

5. Monitor and Manage

Track your investments using Pocketful’s mobile app. Monitor market trends, news updates, and analyst recommendations to adjust your holdings when needed.

Read Also: Best Shipping Stocks in India

Conclusion

From your daily scrolls on Instagram to weekend movie nights, data centers power it all. As India accelerates its digital journey with AI, 5G, and cloud adoption, data center stocks in India stand at the forefront of this growth story.

Investing in these companies means betting on the infrastructure that keeps the digital economy alive and thriving. With the right research tools and platforms like Pocketful, you can capitalize on this emerging sector. Start your investing journey with Pocketful and build a smart, future-ready investment portfolio today. It is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

Do data center stocks provide regular dividends?
Some data center companies in India do pay dividends. However, it comes down to how much money the company is making and whether they’re reinvesting it for future growth or not.
Do data center stocks perform well during market downturns?
They’re generally more stable because digital services are always needed — even in tough times. But like all stocks, they can still go down in a market crash. It is wise to diversify your portfolio to manage risks in the best way.
Do data center companies face environmental regulations in India?
Yes. Data centers use a lot of power, so they need to follow environmental regulations. The good part is that companies investing in eco-friendly tech and saving energy have a better chance to grow in the long run.
Are there any upcoming IPOs of data center companies in India?
India’s data center space is growing fast, and some companies might be thinking about launching IPOs to raise funds. Just see SEBI announcements or financial news and you might spot an exciting investment opportunity coming up!
What financial ratios should I check before investing in data center stocks?
You can look at a few key metrics to judge the financial health of the company such as profit margin, ROE, ROCE, Debt-to-equity ratio, etc.

July 21, 2025

10 Best Shipping Stocks in India

The shipping industry in India plays a pivotal role in driving economic growth by seamlessly linking the nation’s agricultural and industrial production to domestic and international markets. With the growth of international trade and the government’s Sagarmala program for enhancing efficiency of port operations, shipping companies and their shares have come into focus as interesting prospects for investors.

The leading Indian shipping stocks showcase a blend of public sector and private sector players, each excelling in fleet size, market share, and service specialization. These corporations serve as champions of India’s maritime logistics and significantly fuel the nation’s standing as a global trade center. In this blog, we will discuss the top 10 shipping stocks in India, their overviews and key performance indicators.

What are Shipping stocks?

In India, a shipping stock refers to the equity shares of a company engaged in sea transport, logistics, or related services. They manufacture, own or operate cargo vessels, tankers, container and passenger ships which transport cargo and passengers across domestic and international waters. It also includes companies that provide essential courier services. Like any other nation, shipping stocks form an essential part of India’s trade infrastructure and facilitate movements of imports and exports which bolster the national economy.

Global trade volumes, freight rates, fuel costs, and government policies impact the performance of these stocks. Many shipping stocks provide investors with opportunities for both capital growth and consistent dividends, but they face challenges due to the global economy and changes in regulatory policies. By investing in these stocks, one can gain exposure to the growth of India’s maritime industry and take advantage of the country’s strategic location along major global shipping routes.

Market Information of Top 10 Shipping Stocks

Company Name	Current Market Price (in ₹)	Market Capitalization (in ₹ Crores)	52 Week High (in ₹)	52 Week Low (in ₹)
Cochin Shipyard Ltd.	1,938	50,985	2,774	1,180
Blue Dart Express Ltd.	6,889	16,347	9,489	5,365
Great Eastern Shipping Company	991	14,148	1,420	797
Shipping Corporation of India Ltd	223	10,369	335	138
SEAMEC Ltd.	848	2,156	1,670	780
Essar Shipping Ltd.	28.6	592	69.7	21.2
ABS Marine Services Ltd	218	534	358	92.1
Global Offshore Services Ltd.	84.5	222	139	63
Chowgule Steamship Ltd	25.6	92.8	34	21.6
Shahi Shipping Ltd	17.4	25.2	29	14.1

(Data as of 16 July 2025)

Overview of Shipping Companies in India

An overview of the shipping companies in India is given below:

1. Cochin Shipyard Ltd

Cochin Shipyard Ltd was commenced operations in 1972 and is a leading public sector undertaking in the field of shipbuilding and repair, with over five decades of experience and expertise in constructing and servicing a wide range of vessels. For FY2025, the company showcased strong corporate results, The shipbuilder’s revenue from operations increased to ₹1,757.65 crore in FY25 Q4 from ₹1,286.04 crore in Q4FY24 marking a 36.6% growth . The company’s annual income of ₹5,209.02 crore reflects a 25.8% growth compared to ₹4,140 crore in previous year attributed to strong performance from both shipbuilding and ship repair activities. Adding to the comprehensive leadership position, the company also offers an all-encompassing ship repair service to clients within the country and outside which include the construction of tankers, bulk carriers, passenger vessels, and specialized naval ships.

2. Blue Dart Express

With more than four decades of experience in logistics and supply chain solutions, Blue Dart Express Ltd., which was founded in 1983, is the leading air express carrier and integrated freight transportation & distribution company in South Asia. In FY2025, the company’s consolidated revenue from operations increased by 8 percent, reaching ₹5,720 Cr, illustrating strong market demand and operational resilience despite a decline in net profit for Q4 FY2025. The company operates in diverse sectors providing express delivery and freight forwarding and integrated supply chain services to B2B and B2C customers in India and serving the changing demand of e-commerce alongside the industrial sector.

3. Great Eastern Shipping Company

It is the largest maritime transporter in the Indian private sector. Founded in 1948, the company has been operating for seventy five years. Some operational issues arose during FY2025, leading to a 10% annual net profit drop to ₹2,344 crore although it managed a sales increase of 1.3% to ₹5,323 crore, the company still maintains strong financial performance and consistently paid dividends. Shareholder dividends for FY2025 stood at ₹29.70 per share, continuing its 13-quarter streak. Greatship (India) Limited, a subsidiary of Great Eastern Shipping Company, also supports offshore oil exploration alongside transportation of crude oil, petroleum, and dry bulk cargo.

4. Shipping Corporation of India Ltd.

Shipping Corporation of India Ltd was began operations in 1961 as the largest government owned shipping company, with the Government of India holding more than 63.75% of shares. In FY2025 the company made ₹843.58 net profit (24% up from prior year), with total income at ₹5800 cr (10% increase). The dividend recommended by the company board also stood at ₹6.59 per equity share showcasing the company’s commitment to the shareholders. The company offers various services such as crude oil and product tankers, dry bulk, offshore support, container shipping, and even ferrying passengers, as well as chemicals and gas transportation.

5. SEAMEC Ltd

It is one of India’s foremost providers of offshore oilfield and subsea engineering services, having nearly four decades of industry experience since its incorporation in 1986. During FY2025, the company faced difficult market conditions, resulting in a significant financial performance decline. Consolidated net sales for the company dropped to ₹140.18 crore in the December 2024 quarter, down 28.78% year-on-year, and profitability continued to face pressure through the March 2025 quarter. In India, SEAMEC’s core services, which include operation of diving support vessels, subsea engineering, and offshore logistics, make the company an indispensable ally in the country’s oil and gas exploration efforts.

6. Essar Shipping Ltd

Essar Shipping Ltd has turned out to be a key player in the Indian maritime sector. It was established in 1945 and was formally incorporated in 2010 then listed in the Bombay Stock Exchange. It is based in Mumbai and operates a diversified fleet of 26 vessels which includes VLCCs, bulk carrier and tugs which provides services like petroleum products, crude oil transportation and dry bulk cargo to India and world. It also offers logistics services and provides contract drilling services. It stays focused in supporting India’s energy and commodity supply chain sector with its shipping, logistic and oilfield services.

7. ABS Marine Services Ltd.

ABS Marine Services Ltd, Starting in 1992, the company has established its place in India’s marine logistics and offshore support industries. Most recently, in March 2025, the company reported ₹179 crore in operating revenues, while their net profit after tax was ₹27 crore. ABS Marine Services net gain, coupled with the healthy return on equity, strong operating margins and strong management makes it a strong player in the shipping sector. The financial performance of ABS can be attributed to efficient vessel management, offshore support for oil and gas exploration services along with a full range of marine logistics services.

8. Global Offshore Services Ltd.

Global Offshore Services Ltd is a Mumbai based company that was incorporated in 1976 and is promoted by Garware group. This company specialises in offshore support services for the oil and gas sector, operating with offshore vessels that transports cargo, it also handles anchor operations and offshore construction projects for clients like ONGC and Vedanta. In FY2025 the company witnessed a downturn with its net sales dropping by 16% and decline in net profits as well due to the ongoing challenges in the offshore market. Even though the company is facing challenges it still is focused on improving its core marine operations supporting India’s energy infrastructure.

9. Chowgule Steamships Ltd.

Chowgule Steamships Ltd is a part of the Chowgule Group, and has been a part of India’s shipping sector for over 60 years. Incorporated in 1963, the company faced significant operational challenges as of fiscal year 2025, with annual net sales slumping almost 10% year-over-year in the March quarter and reporting its lowest quarterly profit after tax in five quarters, indicating ongoing transport services sector headwinds. Still, the company continues to focus on their core business of operating bulk carriers, serving both coastal and international routes.

10. Shahi Shipping Ltd.

Shahi Shipping Ltd. is one of the coastal shipping companies in India with nearly four decades of experience in maritime logistics. Founded in 1985, and with its headquarters located in Navi Mumbai, the company has managed to maintain operational presence through market shifts. As a result, Shahi Shipping currently owns and operates 13 vessels while also pioneering the transshipment business. Along with bulk transport of petroleum and water, and container feeder services, the company also provides fuel to major oil corporations and supplies potable water to vessels mid-ocean.

Read Also: List Of Best FMCG Stocks In India

Key Performance Indicators

Company Name	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Cochin Shipyard Ltd.	24.14	17.16	14.82	19.0	0.01
Blue Dart Express Ltd.	7.51	4.41	16.19	18.32	0.13
Great Eastern Shipping Company	50.69	44.04	16.44	16.60	0.15
Shipping Corporation of India Ltd	17.97	14.50	10.14	10.00	0.23
SEAMEC Ltd.	17.41	13.48	8.89	9.77	0.21
Essar Shipping Ltd.	1,820.66	6,399.31	-27.73	-19.18	-0.69
ABS Marine Services Ltd	23.39	15.15	11.87	11.07	0.77
Global Offshore Services Ltd.	-22.47	11.14	2.72	-4.96	0.20
Chowgule Steamship Ltd	63.10	33.11	2.88	5.29	0.00
Shahi Shipping Ltd	25.59	-33.71	-154.80	44.21	2.69

(Data as of March 2025)

Factors to Consider before Investing in Shipping stocks in India

Some of the factors to consider before investing in shipping stocks are:

International Business Patterns and Economic Developments : Shipping shares are a good reflection of the overall health of the economy, and their financial performance is highly sensitive to business cycles. During favorable economic conditions, when there is more import and export activity, freight rates and earnings tend to rise, leading to higher share prices. However, in downturns, global trade slows down, resulting in lower freight rates and declining earnings, which can negatively impact their stock performance.
Company Business model and Fleet Operational Efficiency: Evaluate shipping company’s financial statements, profitability, debts, fleet size, etc. Operating expenses are a major consideration as companies with modern, efficient fleets tend to have lower costs, stronger competitiveness, and better profitability. In contrast, older and less efficient vessels are costlier to operate and often generate lower margins, reducing the company’s overall performance.
Customs Framework and Regulatory Policies : Like other sectors, shipping is highly regulated. Among others, the operational expenses and the possible growth can be impacted by changes in the environmental and safety standards specified by the regulatory authorities.
Fuel Cost Volatility and Operational Efficiency : Shipping companies incur significant expenses on fuel and daily fleet operations. Profitability can decline sharply when oil prices rise. Investors should closely examine how effectively a company manages these operational costs and whether it has strategies to hedge or reduce the impact of fuel price fluctuations.
Leadership Quality and Industry Reputation : In a highly competitive and cyclical sector like shipping, strong governance and experienced leadership are critical. Companies with reputable management teams and a solid track record are better equipped to navigate market volatility, adapt to changing industry trends, and sustain long-term growth.

Conclusion

Shipping stocks in India can be a lucrative investment opportunity, but they require thorough analysis as well as a grasp of the global and domestic economic conditions. Investors must pay close attention to the company’s financial performance, management, as well as to fuel prices and regulations. Although there is a possibility for growth, investing in shipping stocks can be extremely risky due to their cyclical nature. Hence, it is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What are some leading shipping companies in India?
Some of the leading shipping companies in India are The Great Eastern Shipping Company, Blue Dart Express, Cochin Shipyard, Shipping Corporation of India, etc.
Which city serves as the primary base for most of the India shipping companies?
Major shipping companies are headquartered in Mumbai, Maharashtra.
What services do shipping companies provide?
Shipping companies offer a range of services, including container shipping, bulk cargo transport, logistics support, warehousing, and freight forwarding.
What makes Indian shipping stocks attractive to the investors?
These stocks provide investors with exposure to global trade and economic growth, as well as India’s expanding logistics and maritime sector. However, they also come with high market risk due to their sensitivity to global trade cycles and freight rate fluctuations.
Are shipping stocks suitable for long-term investment?
Shipping stocks can be suitable for long-term investors who can tolerate volatility, as they benefit from global trade growth but are cyclical and highly sensitive to economic and fuel price fluctuations.

July 20, 2025

What is MTF (Margin Trading Facility)?

In the world of investing, investors are always looking for ways to maximize their returns. One such powerful option is Margin Trading Facility (MTF). With MTF, you can buy more shares than your cash would normally allow by borrowing funds from your broker. This leverage can amplify your profits, but it also increases risk if the market moves against your position.

In this blog, we will explain to you what Margin Trading Facility (MTF) is and how it works.

What is a Margin Trading Facility?

Margin Trading Facility is a service provided by a stockbroker in which a trader can purchase shares by paying only a portion of the total transaction value. It is like paying an upfront amount for entering the trade, and the remaining amount is paid by the broker. The amount which is paid by the trader is known as “Initial Margin”, and the remaining amount paid by the broker is called the funded amount. Margin trading generally carries high risk.

Features of Margin Trading Facility

The key features of the margin trading facility are as follows:

High Purchasing Power: Through margin trading, the buyer can purchase more securities than they could afford; helping investors increase their purchasing power.
Upfront Margin: The investor is required to pay only the upfront margin, not the entire amount of the transaction value.
Interest: The investor will have to pay interest on the amount borrowed from the broker.
Regulated Stocks: Only the stocks which are approved by SEBI and your stockbroker are eligible for margin trading.

Check Out – Stocks Available for MTF

How Does Margin Trading Facility Work?

The margin trading facility works in the following manner:

Margin Money: The investor will have to deposit a margin amount, which is a certain percentage of the total trade value. Margin percentage is pre–defined and generally ranges from 20 to 50%.
Funding: The remaining amount of the trade value is funded by the broker.
Interest Charges: The broker charges interest on the funded amount, and the rate of interest varies from broker to broker.
Collateral: The shares purchased by the investor are pledged or kept as collateral by the broker.
Square Off Position: Once you square off the position after a certain period, you have to pay the dues to the broker.

Example of Margin Trading Facility

Let’s understand the concept of Margin Trading Facility with an example.

Suppose you wish to purchase 100 shares of a company with a share price of ₹1000. Then the total traded value is ₹1,00,000. Suppose, you are required to pay 25% of the trade value as the upfront margin. Then, the total amount payable as upfront margin by you will be 25% of ₹1,00,000, which is equal to ₹25,000. And the remaining 75% or ₹75,000 will be paid by the broker. Suppose the broker charges 14% per annum on the funded amount paid by the broker for the duration for which you hold the trade.

If you hold the stock for one month or 30 days, then you will have to pay the interest on the borrowed amount for 30 days. Which will be calculated as follows:

Interest = ₹75,000 * (14%/365) * 30 = ₹863

Benefits of Margin Trading Facility

The significant advantages of using Margin Trading Facility are as follows:

Increased Purchasing Power: Using MTF increases the purchasing power of the investor, which potentially increases profits if the stock moves in a favorable direction.
Long Holding Period: One can easily hold their position for a longer period of time, say one week or one month, allowing them to generate good returns on their investments.
Diversification: MTF helps investors use their capital more efficiently by leveraging it to buy stocks. This frees up funds to invest in other opportunities, enabling a more diversified portfolio.
Ownership: Shares purchased through MTF are held in the investor’s name, meaning they enjoy full ownership. As a result, investors are entitled to participate in all corporate actions, such as dividends, bonuses, rights issues, and voting.

Risks of Margin Trading Facility

The risks related to using the Margin Trading Facility are as follows:

High Risk: Shares bought using MTF can result in significant losses if the stock price moves unfavourably.
Interest Cost: The interest rates charged by the broker on the MTF are generally very high due to which your profits can be significantly reduced.
Margin Calls: In case of high volatility, the broker can ask you to deposit additional margin, or else they can sell the shares pledged by you.
Limited Stocks: The facility to use the margin trading is not available for every stock.

How to use Margin Trading Facility on Pocketful?

Pocketful also provides you with an opportunity to use the margin trading facility. To use it on Pocketful, one can follow the steps mentioned below:

In the first step, the investor is required to open a trading and demat account with Pocketful, which can be opened for free online.
The next step is to transfer the funds to your trading account.
Once the account is opened successfully, you need to identify the stock which you wish to buy.
Go to the order window, switch to the “Pay Later” option and enter the quantity and price.
Click on Buy with MTF and your order is executed.
Once the stock is purchased, these are automatically pledged, and your transaction is completed.

Note: Make sure that your DDPI is enabled to buy stocks using MTF.

Conclusion

On a concluding note, the margin trading facility allows an investor to earn significant profits with a limited amount of capital. The investor is required to pay interest on the amount which is borrowed from the broker. However, using MTF comes with various risks, such as interest rate cost, potential for higher losses. Therefore, it is advisable to use the MTF facility only after consulting your investment advisor.

Frequently Asked Questions (FAQs)

What is the full form of MTF?
MTF refers to Margin Trading Facility offered by brokers to their clients, in which one can use the funds provided by their broker to take a much larger buy position in the equity market.
Can I trade in every stock using MTF?
No, only selected stocks can be bought using MTF. You can find the list of eligible stocks on your stockbroker’s website.
Is interest charged by the broker for using the Margin Trading Facility?
Yes, the stockbroker charges interest on the borrowed amount.
What is Upfront Margin?
Upfront Margin is also known as initial margin, which is paid by the investor before buying using MTF.
Can I hold shares using MTF for the long term?
Yes, you can hold shares using MTF for the long term; however, the policies related to the holding period vary from broker to broker.

July 20, 2025

10 Best Robotic Stocks to Buy in India 2025

As the world moves towards automation, robots with AI capabilities will have a crucial role to play in future. From manufacturing plants to healthcare and smart warehouses, intelligent machines are increasingly taking over tasks once handled by humans. Therefore, companies engaged in the robotics sector will have strong growth potential.

In this blog, we will give you an overview of the best Robotic stocks in India and the benefits of investing in them.

What are Robotic Stocks?

Robotic stocks are the shares of companies that are primarily engaged in designing, developing, manufacturing and distributing robotics solutions to businesses associated with various industries. The solutions designed by these businesses have a big impact on many industries as their devices and systems can help businesses complete tasks with efficiency and precision.

S.No.	Top Robotic Stocks
1	ABB India Limited
2	Siemens Limited
3	Persistent Systems Ltd.
4	Schaeffler India Limited
5	L&T Technology Services
6	Tata Elxsi Limited
7	Honeywell Automation Limited
8	Cyient Limited
9	Happiest Minds Technologies Ltd.
10	Affordable Robotic and Automation Limited

Market Information of Robotic Stocks in India

Company	Current Market Price (in ₹)	Market Capitalisation (in ₹ crores)	52-Week High (in ₹)	52-Week Low (in ₹)
ABB India Limited	5,654	1,19,811	8,941	4,590
Siemens Limited	3,151	1,12,214	4,662	2,450
Persistent Systems Ltd.	5,614	87,803	6,789	4,149
Schaeffler India Limited	4,240	66,276	4,365	2,823
L&T Technology Services	4,348	46,076	6,000	3,855
Tata Elxsi Limited	6,179	38,486	9,083	4,601
Honeywell Automation India Limited	40,650	35,935	56,999	31,025
Cyient Limited	1,296	14,395	2,157	1,050
Happiest Minds Technologies Ltd.	625	9,517	838	519
Affordable Robotic and Automation Limited	504	566	846	349

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-34.65%	-34.65%	-34.65%

(As of 16 July 2025)

Key Performance Indicators (KPIs)

Company	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
ABB India Limited	20.75	15.35	26.45	35.54	0
Siemens Limited	16.63	12.22	17.68	22.42	0
Persistent Systems Ltd.	15.82	11.72	22.15	28.61	0
Schaeffler India Limited	15.57	11.40	17.60	23.76	0
L&T Technology Services	16.84	11.84	20.83	27.01	0
Tata Elxsi Limited	28.08	21.04	27.44	34.27	0
Honeywell Automation India Limited	17	12.49	12.96	17.17	0
Cyient Limited	13.21	8.87	11.59	15.37	0.04
Happiest Minds Technologies Ltd.	17.81	8.96	11.72	17.06	0.74
Affordable Robotic and Automation Limited	-2.60	-7.16	-11.56	-3.36	0.55

Benefits of Investing in Robotics Stocks

There are significant benefits to investing in robotics stocks, a few of which are as follows:

Increasing Demand: Robots are in high demand across industries, such as automotive, healthcare, etc.
Portfolio Diversification: One can diversify their investment portfolio by investing in robotics stocks as this can reduce the market risk in a portfolio.
Increase Efficiency: Robotics companies design solutions that automate labour-intensive processes, improve precision and decrease errors, thereby solving real-world problems.

Factors to be considered before investing in Robotic stocks

The key factors that one should consider before investing in robotics stocks are as follows:

1. Analyze Company’s Core Business Operations: One should understand the core business operations of the company, whether they are primarily engaged in robotics or some other industry.

2. Financial Health: Understanding the company’s debt levels, profit margins, and revenue growth is essential before making any investment decision in Robotics companies.

3. R&D Focus: Companies that are investing in R&D continue to stay ahead of their competition. Therefore, one should choose the company which is focusing on R&D.

Future of Robotic Stocks

The robotics market is growing at an exponential rate. The global advanced robotics market is expected to grow at a compound annual growth rate of more than 20%, expected to reach $280 billion by 2034. This expansion is being driven by the increasing demand for efficiency, productivity, and solutions to the global labour shortage. Hence, one can invest in robotic stocks and become a part of this growing sector.

Conclusion

In conclusion, robotics stocks offer exciting investing opportunities as the world quickly shifts to automation, smart manufacturing, and digital transformation. However, one should understand the company’s market position in the robotics industry. The innovative technologies adopted by the company play a vital role in the company’s success. Therefore, it is advisable to consult your investment advisor before making any investment decision.

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5	Top 10 Cable Stocks in India

Frequently Asked Questions (FAQs)

What are Robotic Stocks?
Robotic stocks are the shares of those companies that are primarily engaged in designing, manufacturing, and distributing robotic solutions and equipments.
What are the top Robotic stocks in India?
The top robotic stocks in India are ABB India Limited, Siemens Limited, Tata Elxsi Limited, etc.
What are the major risks involved in investing in Robotic stocks?
The major risk involved in investing in the robotics sector is the technological changes. Additionally, high research and development costs can impact profitability, and there’s always a risk that new technologies may not achieve commercial success or widespread adoption.
How can I invest in Robotic Stocks?
To invest in robotic stock, one must have a demat and trading account. Now, you can open a trading and demat account with Pocketful without paying any account opening charges, and Pocketful also offers zero brokerage on delivery-based trades.
Is it a good option to invest in Robotic Stocks?
Yes, investment in Robotic stocks can be considered a good option as the demand for automation is increasing globally. However, it is advised to consult a financial advisor before investing.

July 19, 2025

Options Trading Strategies

If you’re not familiar with the word “Options” in the financial world, then this blog is for you. Options are derivative contracts that give the holder the right (but not the obligation) to buy or sell an underlying asset at a specified price on or before a specified date of expiry.

There are multiple ways to trade in options generally termed as trading strategies. In this blog, we will delve into the detailed study of widely used bullish, bearish, and neutral options trading strategies.

Before we delve deeper, let us understand the broader terminologies used in the options world:

Spread

A spread involves buying and selling options of the same type (either call or put) on the same underlying asset but with different strike prices or expiry dates. The main objective of spread strategies is to profit from differences in premiums. Spreads are multi-leg strategies that involve two or more trades.

Straddle

In a straddle, the investor buys both the call option as well as a put option with the same strike price and same date of expiry. Straddle is used when investors expect volatility in the market and are not sure in which direction the market will move.

Strangle

Strangle is more or less similar to straddle but involves buying a call option and a put option with different strike prices that are slightly out of the money. Strangle is used when investors are uncertain about the direction and are expecting high volatility.

Now, let us understand the strategies in detail.

Bullish Trading Strategies

Long Call

This is a vanilla or a simple strategy where the investor buys a call option and earns profits from an increase in the price of the underlying asset. Profit potential in long calls is unlimited.

Bull Call Spread

In a Bull call spread, investors buy a call option with a lower strike price (in the money or at the money) and sell a call option with a higher strike price (out of the money). Both the trades are of the same expiry.

Investors pay a net premium to enter into the trade. The premium paid for the call bought is partially offset by the premium received from selling the call with a higher strike price.

The maximum profit is limited and happens when the price of the underlying asset is at or above the higher strike price on the expiry date.

Bull Put Spread

In a bull put spread investors are moderately bullish on underlying assets. The investor sells a put option (at-the-money) with a higher strike price and simultaneously buys a put option (out-of-the-money) with a lower strike price on the underlying asset.

Traders receive a net premium when establishing the spread and the maximum profit is limited to the net premium received when establishing the spread and happens when the price of the underlying asset is at or above the higher strike price at the date of expiry.

Call Ratio Back Spread

Call ratio back spread is a strategy used by investors when they expect a rise in the price of the underlying asset. The investor sells a specific number of call options that are at-the-money or in-the-money. Simultaneously, the investor buys a larger quantity of call options with a higher strike price and these call options are out-of-the-money.

Maximum profit in the call ratio back spread strategy is unlimited if the price of the underlying asset rises substantially.

Protective Put Strategy

This strategy is designed to protect the investor’s existing position of the stock from downside risk. In this strategy, the investor already owns the underlying stock and he buys a put option with a strike price equal to or close to the current market price. The investor pays a premium to buy the put options and these put options act as insurance.

Maximum profit potential in the protective put strategy is unlimited as stock can move upside infinitely.

If an investor buys the stock and put at the same time, it is known as “Married Put”.

Bearish Trading Strategies

Bear Call Spread

Bear Call spread is a bearish trading strategy that involves selling a call option with a lower strike price and simultaneously buying another call option with the same expiry date but at a higher strike price. Risk and reward in a bear call spread are limited.

Bear Put Spread

An investor chooses this strategy if he expects the price of an underlying asset will go down in the future, however, not significantly.

In a bear put spread, an investor buys a put option with a higher strike price that gives him the right to sell the underlying asset before or at the date of expiry and simultaneously the investor sells a put option with a lower strike price that gives him an obligation to buy the underlying asset. Maximum profit is limited to the difference between strike prices minus net premium paid. Maximum loss is limited to the net premium paid.

Neutral Trading Strategies

Covered Call Writing

In this strategy, the investor already owns a stock. The investor sells the call option against the owned stock and receives a premium upfront for selling the call option and this premium is the maximum profit.

Now, if the stock price rises above the strike price of the call option by the expiry date, the buyer will exercise the option and the investor will have to sell the shares at the strike price and will keep the initial price of the stock and the premium. The profit potential is limited to the strike price.

If the stock price stays below the strike price by the expiry date, the option will expire worthless and the investor will pocket the gains, i.e., the premium received.

Iron Condor options strategy

The iron condor options strategy combines two spreads: bull put spread and bear call spread so that profits can be generated even from the low volatility of the price movement of the underlying asset. In this strategy, the investor sells a put option with a higher strike price and buys a put option with a lower strike price thus creating a credit spread.

Simultaneously, he sells a call option with a higher strike price and buys a call option with a lower strike price. This creates another credit spread.

Both the call and put options have the same date of expiry. The profit potential is limited to the net premium received.

Butterfly Spread Options Strategies

A butterfly spread option strategy uses multiple option contracts to create a position with limited risk and limited profit potential.

There are two main types of butterfly spreads

Long Call Butterfly Spread – In a long butterfly spread, the investor buys one lower strike call option, sells two middle strike call options and buys one higher price call option. Profit and loss potential in this strategy is limited.
Short Call Butterfly Spread – In a short call butterfly spread the investor sells one lower strike price call option, buys two middle strike price call options, and sells one higher strike price call option. Profit and loss potential in this strategy is limited.

Conclusion

We have explored various option trading strategies, each having a unique style and payoff. Choose an option strategy after analysing the market trend and that aligns with your risk profile. Understand the chosen strategy before implementation and do not forget to adjust your market strategies according to the prevailing market conditions. Regularly monitor your positions to mitigate losses because options trading carries inherent risk. It is advised to consult a financial advisor before trading.

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5	Risk Management In Trading: Meaning, Uses, and Strategies

Frequently Answered Questions (FAQs)

What is Options Trading?
Options Trading involves buying and selling options, which are derivative contracts that give the holder the right (but not the obligation) to buy or sell an underlying asset at a specified price (strike price) on or before a specified date of expiry.
Is bull call spread a bullish strategy?
Yes.
What is the difference between Straddle and Strangle?
Both the strategies are more or less similar, the only difference is in straddle, we use call and put of the same strike price. However, in strangle, we use a call and put option of different strike prices.
What are the three categories of option trading strategies?
Bullish strategies, bearish strategies, and neutral strategies.
Are protective put and married put the same strategy?
Both are similar strategies, the only difference is in the protective put, the investor already owns the shares, and in married put, the investor buys the shares and put option at the same time.

July 19, 2025

Gross Pay vs Net Pay: What’s the Difference?

Have you ever felt confused when the salary credited to your account doesn’t match the amount mentioned in your offer letter? You’re not alone! The large figure you see in your job offer is usually your gross salary, while the actual amount you receive each month, i.e., your net salary is often quite different.

Understanding the difference between gross and net salary is crucial for effective budget planning and tax planning. In this blog, the difference between the two has been explained in simple language with all the calculations involved.

What is the Gross Salary?

Gross salary is the total salary earned by an employee, including all allowances and bonuses before any taxes or other deductions. This is the amount offered by the company, which includes Basic Pay, House Rent Allowance (HRA), Dearness Allowance (DA), Special Allowances, Performance Bonus, etc.

For example, if someone’s gross salary is ₹50,000, it means that the total earnings for the month are ₹50,000, even if the amount received in the account is less than this.

Gross salary is often also linked to CTC (Cost to Company), but CTC may also include some additional benefits like leave encashment, gratuity, reimbursement of medical expenses, etc.

Gross salary in the salary slip is the amount from which subsequent deductions are made, such as PF, professional tax and income tax.

Important points :

Gross Salary = Basic + DA + HRA + Allowances + Bonus
Income tax, PF, and other deductions are deducted from gross salary

What is Net Salary?

Net salary represents the actual amount that is transferred to the bank account every month. It is also called take-home salary. It is slightly less than the gross salary because some necessary deductions are made from it.

Deductions usually include –

EPF (Employee Provident Fund)
Professional Tax (applicable in some states)
Income Tax (TDS)
Health or Medical Insurance Premium
Other Deductions

For example, if someone’s gross salary is ₹50,000 and a total deduction of ₹8,000 is made from it, then the net salary will be ₹42,000, and this is the amount that comes into the account.

Net salary means the amount left after taking out all the necessary deductions from the gross salary. This salary is one’s actual disposable income, which an employee uses for household expenses, savings and investment.

Important points :

Net salary = Gross salary – All necessary deductions
Represents actual amount transferred to the bank account

Gross Salary vs Net Salary: Key Differences

Point	Gross Salary	Net Salary
Definition	The total salary earned by an employee including all allowances and bonuses, but without any deductions.	The salary that is transferred to the bank account after all the necessary deductions, such as tax, PF, insurance etc. are deducted from gross salary.
Included Components	Basic Salary, HRA, DA, Travel Allowance, Medical/Special Allowance, Bonus/Incentive	Balance amount after deducting professional tax, EPF contribution, income tax (TDS), medical or group insurance deductions etc.
Appearance in salary slip	As “Total Earnings” or “Gross Pay”	In the form of “Net Pay” or “Take Home”
Comparison in amount	Always more than net salary	Always less than gross salary
Formula	Gross Salary = Basic Salary + HRA + Allowances + Bonuses	Net Salary = Gross Salary – (EPF + Tax + other deductions)

How to Calculate Gross and Net Salary?

It is important for every employee to have a proper understanding of their salary structure so that it is easy to estimate the in-hand salary and deductions. You can easily calculate your gross and net salary yourself by following the steps given below.

Step 1 : Calculating Gross Salary

Gross salary usually consists of the following components:

Components	Details
Basic Salary	Part of fixed monthly salary
HRA	Rent Allowance (if applicable)
Other Allowances	Travel, Medical, Special Allowance etc.
Performance Bonus	Based on quarterly or annual performance

Formula: Gross Salary = Basic + HRA + Other Allowances + Bonus

Example : If Basic is ₹28,000, HRA is ₹10,000 and other allowances are ₹7,000, then

Gross Salary = ₹45,000

Step 2 : Calculation of Net Salary

Net salary is the amount that is credited to your bank account after all applicable deductions are made from the gross salary.

Deductions that reduce gross salary to net salary typically include:

Deduction Type	Average Rate/Price
EPF(Employees Provident Fund)	12% of (Basic salary + DA)
TDS (Tax Deduction)	As per income tax slab
Professional Tax	This is a state-level tax, which is applicable only in some states. Its amount varies in every state.
Health/Group Insurance	Deduction as per company policy

Formula: Net Salary = Gross Salary – (All valid deductions)

Example: If gross salary is ₹45,000 and total deductions are ₹6,000, then

Net Salary = ₹39,000

Common Salary Slip Terms Explained

There are many terms in the salary slip which have a direct impact on the gross and net salary. All the main terms are explained in simple language below:

CTC (Cost to Company) : CTC (Cost to Company) is the total amount a company spends on an employee in a year. In addition to the gross salary, CTC includes components like the employer’s contribution to PF, gratuity, health insurance, performance bonuses, and other benefits.
Basic Salary : The main part of the salary, on which EPF and many other allowances are based. It is taxable and is usually 35-50% of the gross salary.
HRA (House Rent Allowance) : Rent allowance, which is given to employees living on rent.
DA (Dearness Allowance) : Dearness allowance which is given to the government or some private sector employees to reduce the effect of inflation.
TA (Transport Allowance) : This allowance is given to cover the expenses incurred on travel. To some extent it can also be tax free.
Special Allowance / Other Allowance : These are fixed allowances which are used to cover performance bonus, mobile, fuel, or other expenses. It is usually taxable.
EPF (Employees’ Provident Fund) : A part of the basic salary is deposited in the PF account by both the employee and the company. It is a long term savings scheme.
Professional Tax : It is a tax imposed by the state government in some states. Its amount and rules are different in every state.
TDS (Tax Deducted at Source) : The company deducts direct tax from your salary as per the tax slab fixed by the government and deposits it with the government.
Gratuity : The retirement benefit amount received by the employee after working in a company for more than 5 years. It is a part of CTC, but does not come in the in-hand salary.
LTA (Leave Travel Allowance) : The allowance given for travel expenses. Based on certain conditions, it can be tax free when the employee submits travel receipts.
Bonus / Incentive : This is a performance-based payment, which is added to the salary slip from time to time. Performance bonus inflates gross salary only in the month/quarter of payout; annual CTC already includes the target bonus.
Medical Insurance Premium : If the company provides health insurance, then its premium is also included in the CTC and can sometimes be deducted from the salary.

Conclusion

It is very important for every employee to understand the difference between gross and net salary. Often we get excited after seeing a big amount in the offer letter, but the actual in-hand amount turns out to be less. Therefore, it is important to pay attention not only to the CTC but also to the salary breakup. A clear understanding of your salary structure helps you plan your monthly budget more effectively, make smarter saving and investment decisions, and stay prepared for taxes and other deductions.

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Frequently Asked Questions (FAQs)

What is the meaning of gross salary?
Gross salary includes basic pay, HRA, allowances and bonuses, without any deductions.
What is net salary in a salary slip?
Net salary is the amount that the employee receives in-hand after deductions.
Is net salary always lower than gross salary?
Yes, because PF, taxes and other deductions are deducted from gross salary to calculate net salary.
Does gross salary include CTC?
No, gross salary is a part of CTC, not the entire CTC.
Are allowances taxable?
Some allowances are tax free (like HRA, LTA), but most are taxable.

July 18, 2025

Best Metaverse Stocks in India 2025

Metaverse technology is playing a key role in the digital revolution in India. It is simply a virtual reality space that lets users interact with others in a computer generated environment. According to a report of June 24, 2025, the Indian metaverse market is currently valued at $3.1 billion and is expected to reach $338 billion by 2029.

Technologies like AR/VR, 5G and blockchain are accelerating its growth. In this blog, you will learn about the concept of metaverse, metaverse companies in India, and how to invest in this potential growth opportunity.

What is a Metaverse Company?

A metaverse company is one that creates virtual worlds using technologies such as AR/VR, blockchain, digital twins, and 3D platforms. These companies create immersive spaces for educational simulations, virtual meetings, and e-commerce experiences, etc.

Key Technologies

Some of the key technologies associated with Metaverse are listed below:

AR/VR (Augmented & Virtual Reality): Users are able to experience a blend of the real and digital worlds.
Blockchain: It enables digital assets (NFTs), secure transactions, and ownership.
Digital Twin: These are virtual copies of real-world objects/systems that are linked to real-time data. For example, models of factory machines.

Top 10 Metaverse Stocks in India – Market Information

Company	Current Market Price (in ₹)	Market Capitalisation (in ₹ crores)	52-Week High (in ₹)	52-Week Low (in ₹)
Reliance Industries Ltd.	1,496	20,24,593	1,606	1,115
Tata Consultancy Services (TCS)	3,307	11,96,502	4,592	3,056
Bharti Airtel	1,935	11,60,629	2,046	1,421
Infosys	1,593	6,61,900	2,007	1,307
HCL Technologies	1,640	4,44,933	2,012	1,303
Wipro	259	2,71,864	325	225
Tech Mahindra	1,593	1,55,968	1,808	1,209
LTIMindtree	5,213	1,54,481	6,768	3,802
Tata Elxsi	5,981	37,251	9,083	4,601
Nazara Technologies Ltd	1,343	11,769	1,400	824

(As of 11 July 2025)

Read Also: Best Gaming Stocks in India

Overview of the Top 10 Metaverse Companies in India

A brief overview of the Best Metaverse Stocks in India is given below:

1. Reliance Industries Limited

Reliance Industries was started in 1966 and today it is among the largest private companies in the country. Its business operations range from petrochemicals to digital services. The company has entered the field of metaverse through Jio Platforms, which is creating virtual experiences by combining AR/VR and 5G technology. In October 2022, Reliance became the first company to host its earnings call in Metaverse. Due to its investment in technology and international partnerships with global tech companies, Reliance has become India’s leader in the metaverse ecosystem.

Know the Returns:

1Y Return	3Y Return	5Y Return
-5.79%	25.87%	57.31%

(Data as of 11 July 2025)

Read Also: Reliance Industries Case Study

2. Tata Consultancy Services (TCS)

TCS was started in 1968 and is one of the largest and most prestigious IT service companies of the Tata Group. The company provides services such as digital transformation, cloud, and AI across the world. TCS’ focus in the metaverse field is on developing enterprise level solutions. Its ‘Avapresence’ platform is designed for virtual conferencing, training, and client interactions. TCS is using XR, IoT, and blockchain technology to provide its clients with a secure, scalable, and user-friendly metaverse experience. Its deep understanding of technology and trusted brand value make it one of the leading metaverse companies in India.

Know the Returns:

1Y Return	3Y Return	5Y Return
-15.97%	3.01%	48.82%

(Data as of 11 July 2025)

Read Also: TCS Case Study

3. Bharti Airtel

Bharti Airtel, which has been active in India’s telecom world since 1995, is now emerging as a key part of the metaverse infrastructure. Its 5G services, data center network, and cloud services are powering metaverse applications. The company’s Xtream platform focuses on offering a variety of entertainment content and its Nxtra Data provides secure and sustainable data center infrastructure in India. Currently, Airtel does not directly build metaverse platforms, but its network and data center business has the potential to become the backbone of this digital future.

Know the Returns:

1Y Return	3Y Return	5Y Return
33.92%	185.82%	240.83%

(Data as of 11 July 2025)

Read Also: Bharti Airtel Case Study

4. Infosys Limited

Infosys, started in 1981, is one of India’s most trusted IT companies. In 2022, the company launched ‘Infosys Metaverse Foundry’, which allows clients to design virtual spaces, digital twins and interactive experiences. This platform is specially designed for industries like retail, healthcare and manufacturing. Infosys’ technological expertise and global reach make it a strong Indian company in the metaverse industry.

Know the Returns:

1Y Return	3Y Return	5Y Return
-3.71%	6.63%	102.39%

(Data as of 11 July 2025)

Read Also: Infosys Case Study

5. HCL Technologies

HCL was founded in 1976 and over the years has become a global IT company. In the metaverse, the company has launched a platform called ‘HCLTech Metafinity’, which provides AI and digital avatar based experiences, aimed at bringing brands and companies into the Metaverse. This technology is used in virtual training, industry simulation and digital product design. HCL’s focus is on developing enterprise-grade technology and customized solutions, making it a key player in the metaverse space.

Know the Returns:

1Y Return	3Y Return	5Y Return
7.90%	67.65%	179.54%

(Data as of 11 July 2025)

Read Also: HCL Technologies Case Study

6. Wipro Limited

Wipro was started in 1945 and is one of the oldest and most trusted IT companies in India. The company has now entered the metaverse space as well, working on AR/VR and digital experience design. Wipro is building immersive solutions such as virtual training platforms and 3D consulting experiences for education, retail and real estate sectors. Its technical expertise and international client relationships make it a stable and reliable option in the metaverse space.

Know the Returns:

1Y Return	3Y Return	5Y Return
-3.63%	24.70%	131.26%

(Data as of 11 July 2025)

7. Tech Mahindra

Tech Mahindra was founded in 1986 and is the tech arm of the Mahindra Group. Along with IT services, the company is now rapidly moving into the world of metaverse. Its ‘TechMVerse’ platform creates virtual showrooms, digital workspaces and 3D experiences. From automobiles to retail, Tech Mahindra is offering industry-specific metaverse solutions to its clients. The company’s focus is on developing practical and scalable virtual experiences, establishing it as a serious IT player.

Know the Returns:

1Y Return	3Y Return	5Y Return
7.38%	56.21%	177.12%

(Data as of 11 July 2025)

8. LTIMindtree

LTIMindtree, formed by the merger of LTI and Mindtree in 2022, is today the flagship IT company of the L&T Group. It is a pioneer in AR/VR integration, UX design and creating cloud-based virtual experiences. From healthcare to BFSI, its metaverse solutions are customized to specific industry needs. The company’s global presence and strong technology expertise makes it an emerging metaverse company.

Know the Returns:

1Y Return	3Y Return	5Y Return
-3.27%	30.34%	145.88%

(Data as of 11 July 2025)

Read Also: LTIMindtree Case Study

9. Tata Elxsi

Tata Elxsi, founded in 1989, is a company that offers specialized services in the field of design and technology. It focuses on designing AR/VR solutions, digital twins and immersive experiences. The company offers services such as virtual prototypes, user interfaces and real-time simulations for the automobile, healthcare and media sectors. Its high-tech projects and international client base make it a trusted name in the metaverse space, especially in the field of virtual design and innovation.

Know the Returns:

1Y Return	3Y Return	5Y Return
-14.53%	-24.99%	547.72%

(Data as of 11 July 2025)

10. Nazara Technologies Limited

Nazara Technologies was started in Mumbai in 1999 and today it is counted among the leading gaming companies in India. The company has been active in mobile games, e-sports and now metaverse as well. In June 2025, Nazara launched a new virtual game called Pokerverse VR, which runs on devices like Meta Quest and Apple Vision Pro. Through international acquisitions and fresh investments, the company is taking metaverse gaming to a new level. Its hold on the young audience makes it attractive to investors.

Know the Returns:

1Y Return	3Y Return	5Y Return
48.16%	121.94%	34.61%

(Data as of 11 July 2025)

Key Performance Indicators (KPIs)

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Reliance Industries Ltd.	13.50	8.37	8.25	8.70	0.41
Tata Consultancy Services (TCS)	25.89	19.11	51.24	62.01	0.00
Bharti Airtel	28.42	19.52	29.52	14.72	1.30
Infosys	23.32	16.41	27.87	35.85	0.00
HCL Technologies	20.42	14.86	24.96	30.84	0.03
Wipro	21.26	14.80	15.94	19.03	0.20
Tech Mahindra	11.25	8.01	15.53	18.74	0.02
LTIMindtree	17.08	12.10	20.26	26.32	0.00
Tata Elxsi	28.08	21.04	27.44	34.27	0.00
Nazara Technologies Ltd	5.88	3.61	1.77	2.73	0.05

(Data as of March 2025)

Benefits of Investing in Metaverse Companies

Various benefits of investing in Metaverse companies are given below:

Early Investment in a future technology: Metaverse is still a new technology, but its scope is growing rapidly. Early investors can be a part of this growth story and get good returns in the long run.

Advantage of Digital India and 5G: Internet access in India and the rapidly growing network area of 5G are helping in the widespread accessibility of metaverse experiences. Its direct benefit will be realised by those companies that adopt this technology early to design engaging metaverse experiences.
High-demand sectors like gaming and AR/VR: Metaverse is being used tremendously in segments like gaming, virtual retail and virtual training, which will result in higher revenues for metaverse companies.
Direct access to global markets: Metaverse companies in India can deliver digital products and services not only to India but also to the global customer base, which greatly increases their growth potential.
Diversification in Portfolio: If your investment portfolio is based on traditional sectors, then investing in metaverse stocks can bring tech-focused growth and diversification to your portfolio.

Factors Behind the Rise of Metaverse in India

Some of the factors that have played a key role in adoption of metaverse technology in India are given below:

Strong digital infrastructure: India’s internet and smartphone usage is growing at a rapid pace; the e-commerce market was valued at $125 billion in FY2024, creating a strong foundation for AR/VR technology.
Role of 5G: The mass rollout of 5G connectivity has facilitated lower latency and faster speeds, which is crucial for immersive metaverse experiences.
Blockchain Emergence : India is a rapidly growing market for blockchain-based digital assets which form the basis of the economic model of the metaverse, such as virtual land or NFTs.
Digital twins and Industrial growth : Digital twins are being created for several Indian cities by companies such as Genesys and MapmyIndia urban planning. Also, manufacturing companies are implementing virtual models for smart factories, increasing production efficiency and safety.

Factors to be Considered Before Investing in Metaverse Stocks

Metaverse is a new and rapidly changing field. Small updates or emergence of a better technology can lead to big fluctuations in the stock prices of metaverse companies. Some of the key factors to consider before investing in these companies is given below:

Regulatory and cyber risk : The rules regarding metaverse and digital assets are still not clearly defined in India. Apart from this, problems like data theft and cyber attacks are increasing in the virtual space. In such a situation, security and regulations are very important.
Focus on fundamentals along with growth : It is not right to invest in metaverse stocks just by looking at their future growth story. It is also important to look at the company’s overall business model, financial strength and long-term plan. Good investors are those who trust balance more than hype, where both the company’s future growth prospects and the fundamentals are aligned.
Investment Horizon: Investing in a Metaverse company is a long term investment. It may be difficult to get significant returns in the short term. Therefore, it is better to have a long term perspective while investing. If you are thinking of making quick profits, then this sector may not be right for you right now.
Keep an eye on business diversification as well : Many big companies work in other sectors along with the metaverse. If the metaverse division fails, it is important to estimate how much impact it will have on the entire company. Diversified companies are generally considered safer.
Correct research and updated information : Good research is necessary before investing in metaverse related stocks. One should keep an eye on the company’s latest announcements, project progress, and international partnerships. It is best to get information from reliable sources before making any decision.

Conclusion

The metaverse is still in its early stages in India, but it has immense potential for growth. Many Indian companies are preparing for the future by adopting innovative technologies in this field. If you are thinking of investing for the long term and are looking for technology-based growth stocks, then the metaverse companies can be a good investment option. However, it is very important to choose each stock wisely after analyzing it thoroughly and keep track of its progress from time to time. You must consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What is the metaverse?
Metaverse is a virtual world where people can interact digitally.
Is it safe to invest in metaverse stocks in India?
Yes, as most of these companies are key global IT companies; however, there is definitely some risk because this technology is new and changing rapidly.
Which sectors are most involved in the Indian metaverse space?
IT, gaming, telecom and design based companies are most active in the metaverse space.
Can I invest in the metaverse companies through mutual funds?
You can invest in mutual funds that have invested in metaverse companies discussed above.
Do metaverse stocks give dividends?
Yes, some established companies such as TCS, Infosys, etc. do give dividends.

July 18, 2025

Difference Between Trading and Profit & Loss Account

The Trading Account and Profit & Loss Account are essential financial statements that reflect a business’s overall performance during an accounting period. The trading account shows the results of buying and selling goods, helping determine gross profit or loss by comparing sales revenue with the cost of goods sold. The profit & loss account further includes all operating and non-operating expenses and incomes to determine the net profit or loss of the business. Together, these statements provide a clear and systematic picture of profitability, enabling owners, investors, and banks to assess the financial health and operational efficiency of the business.

This blog explains the Trading Account and Profit & Loss Account, their components, structure, purpose, and key differences, helping you understand your business’s true profitability and financial performance clearly.

What is a Trading Account?

It is a financial report that is made by trading and manufacturing companies to analyse the gross profit and gross loss made by these entities from buying and selling of goods during a financial year, by matching direct revenue (sales) with direct cost (value of goods sold). The trading account helps you check the basic financial health of your business.

It tells us if you are making profit from the main activity of buying raw material or goods for resale and selling your goods. This initial profit is called gross profit. It doesn’t consider other costs like your shop’s rent or electricity bill. It just focuses on the profit and losses generated from core business activities.

Debit and Credit

The Trading Account is usually prepared in a ‘T-shape’ format.Imagine a line drawn down the middle, with each side representing the following:

Debit (Dr.) : Debit is shown on the left side in the format, this is where we list all the costs directly related to buying goods for resale or buying raw material and manufacturing goods for sale. Think of this as the money paid for your products.
Credit (Cr.) : Credit is listed on the right side, this is where we list all the income you earned from selling those goods. Think of this as the money earned from selling products.

Components of Trading Account

The components of Trading Account are listed below:

Opening Stock (on the Debit side) : It refers to the value of all the unsold goods and commodities (including raw material, products under production, finished goods) that an entity possesses at the beginning of the current accounting period. It is essentially the closing stock of the immediately preceding accounting period, brought forward to reflect the goods available for sale or production at the start of the current period.

Purchases (on the Debit side) : Purchases is referred to the total value of goods (raw material, semi-finished goods, or finished products for resale) acquired by a business, whether in cash or credit, during the current accounting period, with the primary intention of resale or for use in the production of goods meant for selling. This figure is typically presented net of any purchase returns, discounts, or allowances.

Direct Expenses (on the Debit side) : Direct expenses are those expenditures that are directly and specifically done to make the purchase of goods for resale or the production of goods during an accounting period. These costs are incurred to transform the raw materials into finished production or reselling expenses.

Sales (on the Credit side) : This is the total money earned by selling goods to customers throughout the year during a specific accounting period. It includes both cash sales and credit sales, this is specifically presented as net sales.

Closing Stock (on the Credit side) : This is the value of all the unsold goods (including raw materials, work-in-progress, and finished goods etc) that remains with the business at the end of the current accounting period. It signifies the portion of the goods available for sale or production that has not yet been consumed or sold, and thus, its cost is deferred to the next accounting period as it will generate revenue in that period. We list it on the income side because its cost should not be matched against this year’s sales, as it is still unsold. It will become the Opening Stock for the next year.

Lets learn it using some numbers, below is the example given of a Trading Account

Particulars	Amount Debit (Dr.)	Particulars	Amount Credit (Cr.)
Opening Stock	60,000	Sales (less returns)	3,80,000
Purchases(less returns)	2,35,000
Direct Expense	5,000
Gross Profit (balancing figure)	1,65,000	Closing Stock	85,000
Total	4,65,000	Total	4,65,000

Profit & Loss Account

It is a primary financial statement that summarizes an entity’s financial performance over a specific accounting period. It systematically presents all indirect incomes and expenses incurred during the period, including gross profit transferred from the Trading Account. including the gross profit/loss transferred from the Trading Account. It helps you determine the net profit or net loss generated by the business.

If the trading account was the basic check-up, the P&L Account is the full diagnostic report. It takes the gross profit we just calculated and then subtracts all the other expenses of running the business. The final result is the Net Profit or Net Loss, which tells you if your business is truly profitable overall.

Indirect Expenses and Incomes

The P&L Account also has two sides, just like the Trading Account. It starts with the Gross Profit (or Gross Loss) from the Trading Account.

Indirect Expenses (on the Debit side) : These are the costs necessary to run the business, which are not directly part manufacturing the product itself but are mandatory for the overall administration, selling, distribution and financing of business during the accounting year. These costs directly do not add value to the finished products but are necessary to run a business. For example, electricity bill, salary, telephone bill, etc.
Indirect Incomes (on the Credit side) : This is any extra income the business earns from activities other than its core operating activities. These incomes arise from secondary, or financial activities and contribute to the overall profitability of the business, appearing on the credit side of the Profit & Loss Account.

Let’s see how a P & L Account looks. We start by bringing the Gross Profit of ₹1,65,000 to the credit (income) side we calculated earlier.

Particulars	Amount Debit (Dr.)	Particulars	Amount Credit (Cr.)
Salaries	60,000	Gross Profit	1,65,000
Rent	36,000	Commission Received	5,000
Electricity Bill	12,000	Sale of Scrap	2,000
Telephone Charges	6,000
Repair and Maintenance	3,000
Net Profit	55,000
Total	1,72,000	Total	1,72,000

After considering all other expenses and incomes, the business owner finally sees his Net Profit as ₹55,000. This is the true profit the business has made in the year.

Gross Profit vs. Net Profit

Now you can see why both accounts are needed. They tell different parts of the same story. The Trading Account tells you if your core business idea is working, like buying goods at a good price and selling them for a profit. The P&L Account tells you if your overall business operation is efficient or whether the profits from sales are enough to cover all costs or not.

Imagine a situation where a trading account shows a high gross profit, but P&L Account shows a net loss then it would tell the business owner that while he is good at pricing his products, his indirect expenses, perhaps the shop rent or electricity costs, are too high and are eating away all profits. This single report gives him the power to identify the exact problem and fix it.

Here’s a simple table to show the key differences :

Differences	Trading Account	Profit and Loss (P&L) Account
Meaning	Financial report that is made by trading and manufacturing companies to analyse the gross profit or gross loss	It is a primary financial statement that considers indirect income earned and all indirect expenses incurred to calculate net profit or net loss
Purpose	To identify gross profit or gross loss	To identify net profit or net loss
What it shows	Profitability of buying and selling goods	Overall profitability of the entire business
Included Expense	Only direct expenses	All Indirect expenses as direct expenses are already considered in calculating gross profit calculation
Timeline	First stage in preparing final accounts	Second stage: prepared after trading account
End Result	Gross profit/loss moved to P&L account	Net profit/loss moved to balance sheet

Benefits of Trading and Profit & Loss Account

1. Profits generated

Trading Account : The Trading Account just focuses on direct costs and sales to show you if your core business activity is profitable or not.
P&L Account : It goes a step further and tells us the net profit. It takes that gross profit and then subtracts all your other business costs, things like office rent, salaries for admin staff, advertising, and even the interest you pay on loans. This is the real profit your business made after everything is accounted for.

2. Performance evaluation

By looking at the Trading Account, you can see if you’re buying things efficiently or if your selling prices are high enough. If your gross profit is shrinking, maybe you’re paying too much for your goods, or selling them too cheap.
The P&L Account then helps you see if your other costs (like office expenses or marketing) are getting out of control. It helps you figure out if you’re spending too much on things that aren’t directly making you money.

3. Informed decision making

If your P&L Account shows you’re losing money on a certain product, you might decide to stop selling it.
If your Trading Account shows you’re getting a great gross profit on another item, you might decide to buy and sell more of that.

They help you decide where to put your money, what to sell more and where to cut costs.

4. Legality and compliances

In India, rules set by regulatory bodies makes it mandatory to prepare these statements.
They’re needed for filing your taxes, audits, and submitting to government regulators. Without them, you can’t really run a business.

5. Financial planning

By looking at how much you’ve sold and spent in the past year (from the Trading and P&L Accounts), you can make good guesses about what you’ll sell and spend on in the next accounting year.
This helps you set budgets, decide how much stock to buy, how many people to hire, and what your financial goals should be. It gives you a roadmap for growth.

Limitations of Trading and Profit & Loss account

1. Past performance, no future guarantee

The Trading and P&L accounts tell you exactly what happened financially in the past year (or quarter, or month). They show how much you sold, what you spent, and what profit you made then.

They don’t predict the future. Just because you made a great profit last year doesn’t guarantee you’ll do it this year. Market conditions change, competition gets tougher, and customer preferences shift. So, relying only on past numbers for future decisions can be risky.

2. Cash in Hand not shown

You can have a huge profit showing in your P&L account, but still be short on cash. Because the P&L account works on an “accrual basis.” This means it records sales when you make them (even if the customer hasn’t paid you yet) and expenses when you owe them (even if you haven’t paid them yet). So, you might have lots of sales on credit, which means profit on paper, but no actual cash in your bank account to pay your bills. This is why you need a separate “Cash Flow Statement.”

3. Misses Out on Non-Financials

The P&L account won’t tell you about how happy your customers are, if your employees are motivated, how strong your brand is, or if you’re developing new products. These “non-financial” things are super important for long-term success, but these statements just don’t show them.

4. Influenced by Accounting Choices

Sometimes, there’s more than one way to account for something, and these choices can affect the profit figure. How you value your “closing stock” (unsold goods) or how you calculate “depreciation” (the way assets lose value over time) can change your profit. These choices are perfectly legal and follow accounting rules, but they mean the profit figure isn’t always a purely objective number; it can be influenced by the methods chosen.

5. Just Summary

The P&L account gives you a summary of your performance. It shows broad categories like Sales or Administrative Expenses, but it doesn’t tell you details like administrative expenses which might be a huge number, but the P&L does not specify whether it’s due to increased rent, higher electricity bills, or more staff salaries. To understand that, you need to dig into separate detailed reports, not just the P&L summary.

Conclusion

By looking at the Trading and P&L Account one can see his exact Gross Profit and his final Net Profit. This is the power of the Trading and P&L Account as it is a financial snapshot of your business. It shows you where your business is strong and where it is losing money. It turns you from being just a business owner into a smart, informed business owner who is in control.

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4	Understanding the Difference Between Credit and Debt
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Frequently Asked Questions (FAQs)

What is the difference between Gross Profit and Net Profit?
Gross Profit is the profit you make just from selling a product, after subtracting the direct cost related to that product. Net Profit is the final profit amount you have left after you pay for all other business expenses like shop rent, employee salaries, and electricity bills.
Is it compulsory for small businesses to make a Trading and P&L Account?
While it may not be legally mandatory for every type of very small business, it is highly recommended as it is essential for understanding your business’s financial health, managing your money, filing income tax returns correctly, and especially for applying for business loans from banks.
Can a business have a Gross Profit but a Net Loss?
Yes, absolutely. It means you are selling your products at a good price and managing the core business activities well, but your other indirect costs are turning your profits into an overall loss for the period.
Where do expenses like advertising or delivery expenses go?
Costs like “advertising” or “delivery expenses” are not directly tied to making or buying your products. They are necessary to run and support your business operations. Therefore, they are treated as indirect expenses and shown on the debit side of the Profit and Loss Account.
What is the “accounting period” for these statements?
In India, the accounting period is usually one financial year, which runs from 1st April of one year to 31st March of the next year. These statements are prepared to show the profit or loss of your business during this specific one-year period.

July 17, 2025

Blog

How AI and Machine Learning Are Transforming Trading Strategies?

What is AI and Machine Learning in trading?

How are AI and ML used in Trading?

Which ML models are used in Trading?

From Intuition to AI: Evolution of Trading Strategies

1. Discretionary Trading

2. Algorithmic Trading

3. AI and Machine Learning

How AI and ML are changing Trading Process

1. Smart stock selection and timing

2. Understanding market sentiment

3. Smart portfolio rebalancing

4. Managing Risk

5. High-Frequency Trading (HFT)

6. Ultra‑Low‑Latency Infrastructure

7. Competition for AI talent in hedge funds

Real-World Case Studies: How Top Firms Use AI in Trading

1. Renaissance Technologies (Medallion Fund)

2. Two Sigma

3. Citadel

4. J.P. Morgan (LOXM AI Platform)

Benefits of using AI in Trading

Challenges and Risks Associated with AI Trading

Conclusion

Frequently Asked Questions (FAQs)

What is AI investing in simple terms?

Can AI guarantee better returns?

Is AI trading suitable for beginners?

Can AI replace human advisors completely?

Is AI trading regulated in India?

Top 10 Mutual Fund Distributors in India

Who are Mutual Fund Distributors?

Types of Mutual Fund Distributors

Top 10 Mutual Fund Distributors in India 2025

Overview of the Top Mutual Fund Distributors in India

1. State Bank of India

2. NJ Wealth

3. HDFC Bank

4. Axis Bank

5. Prudent Corporate

6. ICICI Bank

7. Kotak Mahindra Bank

8. 360ONE Distribution (ET Money)

9. Anand Rathi Wealth

10. HSBC Bank

Top 10 Individual Mutual Fund Distributors in India

How to Choose the Right Distributor in

Conclusion

Frequently Asked Questions (FAQs)

What is a mutual fund distributor?

How do I check if a distributor is registered?

Are online platforms better than traditional distributors?

Do mutual fund distributors charge fees from investors?

Can I switch my mutual fund distributor later?

Best Data Center Stocks in India 2025

What Are Data Center Companies?

List of the Best Data Center Stocks

Overview of the Top Data Center Stocks in India

1. Tata Communications

2. Anant Raj

3. RailTel Corporation of India

4. Netweb Technologies India

5. Black Box

6. Aurionpro Solutions

7. E2E Networks

8. Marine Electricals (India)

9. Orient Technologies

10. Allied Digital Services

Key Performance Indicators (KPIs)

Benefits of Investing in Data Center Stocks

1. Strong Growth Potential

2. Diversification

3. Resilience

4. Government Support

5. Innovation and Sustainability

Disadvantages of Investing in Data Center Stocks

1. High Capital Requirements

2. Regulatory Risks

3. Intense Competition