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  • How is Per Capita Income Calculated?

    How is Per Capita Income Calculated?

    Have you ever thought about how we find out the average income of people living in a country or a state? That’s where Per Capita income—or simply income per person—comes in. It’s a key economic indicator that tells us, on average, how much each person in a region earns, helping us understand the overall standard of living. In today’s blog, we’ll explain in simple terms how to calculate per capita income, its per capita income formula, and the formula for finding per capita income. This is important to know because this figure reflects a country’s economic situation and its standard of living.

    What Is Per Capita Income?

    Per Capita Income (PCI) represents the average income earned by an individual in a country, state, or region.  It is the amount obtained by dividing the total national income by the total population. This is the measure used to assess the average standard of living of a country’s people.

    Importance : Per capita income is an important indicator of the state of any economy. It is used by governments, economists, and international organizations such as the World Bank and IMF to assess how economically prosperous a country or state is. It also facilitates comparisons between different standards of living of countries or states.

    What it shows and what it doesn’t : It is important to note that Per Capita Income only indicates average income. It does not indicate whether income is evenly distributed within society. For example, if some people in a country earn very much and others very little, the average figure may not fully reflect the actual situation.

    Per Capita Income Formula Explained

    Per capita income is an important indicator of a country’s or state’s economic condition.

    Per Capita Income Formula: Per capita income = total national income ÷ total population

    Example: Suppose a country’s or state’s total national income is ₹14,00,000 crore and its total population is 140 crore. Using this formula, per capita income would be calculated as follows:

    DetailsValueExplanation
    National Income₹14,00,000 croreIndia’s estimated annual national income
    Population140 croresTotal population of the country or state
    Per Capita Income₹1,00,000 per person14,00,000 ÷ 140 = ₹1,00,000 per person

    Difference Between Per Capita Income and GDP Per Capita

    PointsPer Capita IncomeGDP Per Capita
    DefinitionIt represents the average income earned by citizens.Shows the average value of the total production of the country.
    FormulaNational Income ÷ PopulationGross Domestic Product (GDP) ÷ Population
    MeaningIndicates how much people earn on average.Indicates how much a country produces per person.
    Focus AreaFocuses on income and standard of living.Focuses on production and economic growth.
    UtilityUsed to measure living standards and income inequality.Used to assess productivity and overall economic performance.

    Read Also: What is Per Capita Income?

    Limitations of Per Capita Income

    1. Ignore Income Inequality: Per capita income is an average figure. If some people earn very much and others very little, the average number will appear high, while the situation of most people will remain poor. For example, in India, high incomes of some states or industries increase the overall average, but the actual situation of the poor remains the same.
    2. Doesn’t Reflect Cost of Living: An annual income of ₹1 lakh is not the same in a metropolis like Delhi and a small town. Expenses, rent, and lifestyle vary in each region. Therefore, per capita income does not reflect the actual purchasing power of people.
    3. Excludes Non-Monetary Benefits: Services such as government subsidies, free healthcare, education, or social security also improve living standards. However, these benefits are not included in the calculation of Per Capita Income, leaving an incomplete assessment of true well-being.
    4. Currency and Inflation Adjustments : The value and inflation rates of currencies vary across countries. Therefore, Purchasing Power Parity (PPP) adjustments are necessary for international comparisons to understand the true economic situation.
    5. Ignore Broader Development Factors: Per capita income reflects only economic progress. It does not measure social development factors such as education, health, gender equality, or environmental conditions.

    Why Per Capita Income Still Matters ? 

    1. Economic Benchmark: Per Capita Income is used by organizations like the RBI, the World Bank, and the United Nations to classify countries into economic categories such as low-income, middle-income, and high-income nations. This indicates a country’s standing on the global stage.
    2. Policy Decisions : Governments use Per Capita Income data when formulating budgets, formulating tax policies, and allocating funds for welfare schemes. This helps understand which states or groups need more assistance.
    3. Investment and Market Analysis: Investors and companies use Per Capita Income data to gauge a region’s purchasing power and market potential. The higher the average income in a region, the greater the potential for consumer spending and investment.
    4. Human Perspective: When I first looked at India’s per capita income, I thought it was just an average. But after delving deeper, I realized that small economic reforms like employment in rural areas, agricultural reforms, or digital transactions are gradually pushing this average upward.

    Read Also: What is Profit After Tax & How to Calculate It?

    Conclusion

    In conclusion, per capita income is an important indicator of a country’s economic situation. It tells us how much income each person earns on average and in what direction the country’s prosperity is progressing. However, it doesn’t tell the whole story true development will be achieved when this average reaches every segment equally. Therefore, when evaluating any economy, we should consider not just income, but also standard of living and equality of opportunity.

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    4Understanding Futures Pricing Formula
    5What Is Dividend Yield? Definition, Formula, and Investment Insights

    Frequently Asked Questions (FAQs)

    1. What is the formula for Per Capita Income?

      Per capita income is calculated by dividing total national income by population.

    2. How is Per Capita Income calculated in India?

      In India, the National Statistics Office calculates it based on total national income and population.

    3. What does Per Capita Income show?

      It tells how much income a person earns on average.

    4. Is Per Capita Income the same as GDP Per Capita?

      No, one shows income and the other shows production.

    5. Why is Per Capita Income important?

      It shows the economic condition of the country and the standard of living of the people.

  • Zinc Price Predictions for Next 5 Years in India

    Zinc Price Predictions for Next 5 Years in India

    Each metal plays a different role in the Indian metal industry and has its own importance. One of such metals is zinc, which is primarily used in the infrastructure sector for steel and iron galvanisation. 

    In today’s blog post, we will give you a zinc price prediction for the next 5 years in India, along with the historical trend and how you can invest in it with the Pocketful trading application.

    Historical Trend of Zinc Prices in India

    The long-term historical trend of zinc prices in India is as follows:

    1. Pandemic Era: During the pandemic era, the prices of zinc fell sharply because of reduced industrial demand.
    2. Recovery: Once the COVID period is over in 2021 and the economies reopen, the global demand improves, and zinc prices rise steadily. 
    3. Consolidation: In early 2022, the zinc prices saw a strong upside movement, although the prices consolidated during the mid-year.
    4. Correction: After reaching a high in 2023, the prices of zinc corrected in 2023 because of the normalisation of demand and inventory.
    5. Recovery and Volatility: Towards the end of 2024, the prices of zinc showed volatility and reached the 3rd-highest annual levels seen in recent years.
    6. Steady Movement of Price: During the year 2025 zinc price saw a slightly lower price as compared to the highs of 2024, and it was influenced by global demand and supply.

    Past 5 Years Zinc Returns

    YearZinc Prices (INR)
    2021-2022180
    2022-2023200
    2023-2024220
    2024-2025230
    2025 (Current)260
    Zinc Price Predictions for the Next 5 Years
    Zinc Price Predictions for the Next 5 Years

    Read Also: Silver Rate Prediction for the Next 5 Years in India

    Next 5 Years Outlook of Zinc Prices in India

    YearExpected Price (INR/KG)OutlookKey Factor
    2026230ConsolidationAs mining output increases, the world’s zinc supply is expected to remain strong, with a minor surplus. Demand is anticipated to recover slowly, and analyst projections indicate that prices will likely fall.
    2027240ReboundThe demand for industrial and automotive galvanised steel is expected to increase, increasing prices as supply and demand ultimately balance. Infrastructure activity in the Asia-Pacific region, including India, is still strong.
    2028260Increasing PriceBecause of long-term structural demand due to urbanisation, the auto sector and supply constraints, zinc is expected to be costlier.
    2029280UpsidePrices are inflated by demand from developing countries, increasing automotive galvanised steel usage, and higher infrastructure spending; weakening global zinc markets are expected.
    2030300Upward MovementZinc has become more important in green technology and construction as a result of ongoing industrialisation and demand growth outperforming incremental supply expansion worldwide.

    Importance of Zinc Prices in the Economy

    Zinc plays an important role in the economy as it is a key raw material for various industries such as infrastructure, construction, automobiles, and steel galvanisation. Lower zinc prices control the production and manufacturing cost of galvanised steel, which is used in different industries, and when the prices increase, it puts inflationary pressure on the economy. Zinc prices are also linked to the global commodity market; therefore, they also reflect industrial demand and trade activities, making them a major indicator of economic activities.

    Read Also: Steel Price Predictions for the Next 5 Years in India

    Factors Affecting Zinc Price

    The key factor that affects the zinc prices in India is as follows:

    1. Demand and Supply: The prices of zinc depend upon the global demand and supply factors. Any deficit or surplus in supply can lead to volatility in the zinc prices.
    2. Infrastructure: The common use of Zinc is commonly used in galvanising steel to protect it from corrosion. Increased spending on infrastructure raises the demand for zinc in the economy, which eventually leads to an increase in the price of zinc.
    3. Mining Output: Production of zinc acts as a key factor in deciding the prices of zinc. Higher production will lead to a decrease in prices, whereas lower production will increase prices.
    4. Trade Policies: A certain portion of zinc is imported from other countries, hence any unfavourable trade policies can significantly impact the prices of zinc.
    5. Market Speculation: Investors’ expectations and speculative trading activities in the zinc market can lead to price volatility in zinc. 

    Should You Invest in Zinc Companies

    One should invest in zinc companies because of the following reasons:

    1. Industrial Demand: Zinc is widely used for galvanising steel, which is primarily used in the infrastructure and construction sectors. Hence, any increase in these activities will push the demand high.
    2. Export: There are various producers of zinc in India who export zinc to the global market and have global exposure.
    3. Diversification: By investing in zinc-related companies, one can diversify their investment portfolio and reduce the risk in it.
    4. Government Policies: Due to the government spending on infrastructure-related activities and favourable trade policies, the companies engaged in distribution, production and marketing activities will benefit from such policies.

    Read Also: Gold Rate Prediction for Next 5 Years in India (2026–2030)

    Conclusion

    On a concluding note, in India, zinc prices are expected to make new highs in the coming year, primarily driven by reasons like rising infrastructure activities, steel production, and increasing demand for galvanised products. While it might be possible that it may witness some volatility due to currency movements and other economic factors. One can invest in zinc companies for the long run by opening a lifetime free demat account with Pocketful, as it also offers zero brokerage on delivery trades. However, it is advisable to consult your investment advisor.

    Frequently Asked Questions (FAQs)

    1. How does the global zinc market affect prices in India?

      India generally follows global zinc prices, based on the London Metal Exchange, and prices in India also include currency and logistics costs.

    2. How can infrastructure activities affect zinc prices?

      Steel is a key raw material for infrastructure activity, due to which the demand for zinc is increased as it is used in galvanisation. 

    3. What is the expected zinc price in India in 2026?

      In 2026, zinc prices in India are expected to be around ₹230 per kg, with a consolidation trend due to increased global mining output and a slight supply surplus.

    4. What is the expected zinc price in India in 2030?

      The zinc price in India is expected to be around ₹300 per kg in 2030, supported by rising demand from infrastructure, construction, and green technology sectors, along with sustained industrial growth and relatively limited expansion in global zinc supply.

    5. Is it a good time to invest in zinc companies?

      Yes, it is a good time to invest in companies engaged in manufacturing, distribution of zinc, as the prices of zinc are expected to rise in the next five years.

    6. Name some zinc-related companies in India?

      Some of the zinc-related companies in India are Hind Zinc Limited, Vedanta Limited, Madhav Copper Limited, etc.

    7. How to invest in zinc companies?

      One can invest in zinc companies by opening a lifetime free demat account with Pocketful, as it also offers free brokerage on delivery trades along with advanced trading tools. 

  • Daily SIP vs Monthly SIP: Which SIP is Better?

    Daily SIP vs Monthly SIP: Which SIP is Better?

    Mutual funds as an investment option are gaining popularity because of their simplicity in creating wealth in the long run. There are two ways of investing in a mutual fund: lump sum and SIP. However, investors often get confused between a daily and a monthly SIP.

    In today’s blog post, we will give you an overview of which one is better: daily SIP or a monthly SIP.

    What is Daily SIP?

    A daily sip is a mode of investing in a mutual fund in which an investor invests a particular amount on a daily basis instead of a monthly or quarterly basis. It spreads your investment evenly throughout the business days, which generally range from 20 to 22 days in a month. Daily SIP increases the benefit of rupee cost averaging. Start your investing journey with Pocketful for a smooth and disciplined experience.

    Benefits of Daily SIP

    The key benefits of daily SIP are as follows:

    1. Rupee Cost Averaging: Through daily SIP, one can get the enhanced benefit of rupee cost averaging because the purchases through SIPs are executed daily.
    2. Market Timing: As the investments are spread across the trading days, the impact of market volatility will be minimised.
    3. Correction: In case of market correction, daily SIP invests more frequently at a lower NAV, which allows an investor to accumulate more units.

    Disadvantages of Daily SIP

    The key disadvantages of daily SIP are as follows:

    1. Less Convenient: Daily SIP includes numerous transactions during a month, which makes it difficult for a retail investor to track, as they prefer simplicity.
    2. Limited Availability: Not every mutual fund scheme offers a daily SIP option, as investors lack flexibility.
    3. Cash Flow: Maintaining regular cash in one’s bank account is difficult and makes it inconvenient for a retail investor who receives a salary as a major source of income.

    What is a Monthly SIP?

    A monthly SIP is a systematic mode of investment in a mutual fund in which an investor invests a fixed amount every month in a scheme on a pre-defined date. It is one of the most common modes of SIP used by a retail investor. The units are allotted based on the applicable date of the NAV on which the SIP is deducted. 

    Read Also: SIP vs Lump Sum: Which is Better?

    Benefits of Monthly SIP

    The key benefits of monthly SIP are as follows:

    1. Easy to Manage: As the SIP is deducted only once a month, therefore for a retail investor to manage and track the SIP investment.
    2. Acceptance: Monthly SIPs are offered by all the asset management companies; hence, offering a wide range of choices to select from schemes.
    3. Flexibility: Monthly SIPs can be paused, stopped or increased at any point in time depending upon the investor’s need.

    Disadvantages of Monthly SIP

    The disadvantages of a monthly SIP are as follows:

    1. Less Effective: In case of a highly volatile market, the monthly SIPs are less effective as they do not capture the NAV movements.
    2. Opportunity: Monthly SIPs can miss the opportunity to buy more units in case of a market correction. 
    3. Active Investors: Investors who seek active averaging or do not want to miss any opportunity related to any market correction can consider a daily SIP instead of a monthly SIP.

    Difference between Daily and Monthly SIP

    The key differences between daily and monthly SIP are as follows:

    ParticularDaily SIPMonthly SIP
    FrequencyIt is deducted on every trading session of a month.Monthly SIPs are deducted only once a month.
    Market TimingDaily SIPs can time the market in a better manner.Monthly SIPs time the market less efficiently.
    ConvenienceIt is less convenient.Monthly SIPs are very convenient.
    TrackingIt is difficult to track daily SIP.Comparatively, it is very simple to track a monthly SIP.
    AvailabilityDaily SIPs have limited availability across fund houses.Monthly SIPs are widely available and are offered in every mutual fund scheme.
    Rupee Cost AveragingIt offers a higher benefit of rupee cost averaging.It offers slightly less benefit of rupee cost averaging than daily SIPs.
    Allotment of NAVNAVs are allotted daily.In a monthly SIP, NAVs are allotted once a month.

    Best Mutual Funds for SIP

    FundsExpense Ratio (%)AUM (Cr)1 Yr Ret (%)3 Yr Ret (%)5 Yr Ret (%)Latest NAV52-Week High NAV52-Week Low NAVExit Load (Period)Minimum SIP Amount (INR)
    HSBC Global Emerging Markets Fund1.5530640.8417.036.0125.9826.0517.441.00 (365)1000
    Franklin Asian Equity Fund – Regular Plan2.5429722.5712.23.135.3235.6625.91.00 (365)500
    Quant BFSI Fund – Regular Plan2.3272922.16——19.2719.2713.771.00 (15)1000
    ICICI Prudential Nifty Auto Index Fund0.9417621.0830.24—21.8822.0915.61—1000
    Tata Nifty Auto Index Fund – Regular Plan1.1110220.77——12.4412.568.890.25 (15)100
    (As of 26th December 2025)

    Which one is better?

    Investors who want consistent investment in the market without worrying about the daily bank balance can consider a daily SIP as an investment mode. On the other hand, those who want simplicity and convenience in investing can opt for a monthly SIP. Both of them offer rupee cost averaging benefits and are suitable for long-term wealth creation. 

    Read Also: SIP in Stocks vs SIP in Mutual funds?

    Conclusion

    In conclusion, both daily and monthly SIPs are crucial tools for creating wealth in the long run. Daily SIPs are comparatively better than monthly SIPs in terms of rupee cost averaging, as investments are made more frequently. However, for a retail salaried individual, monthly SIPs are a better option, as they are easy to manage and straightforward. However, both of them are suitable only if the investments are made in a disciplined manner. Also, it is advisable to consult your investment advisor before investing.

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    Frequently Asked Questions (FAQs)

    1. Which is better daily or a monthly SIP?

      Over a longer period of time, the difference in returns of daily and monthly SIPs is negligible. Hence, anyone can choose between them depending on their needs.

    2. Do all funds offer daily SIP?

      No, not all mutual fund schemes offer daily SIP. There are very few funds available in the market in which one can invest through a daily SIP.

    3. Can I switch from a monthly SIP to a daily SIP?

      Yes, you can easily switch from a monthly SIP to a daily SIP by stopping the monthly SIP and starting a new daily SIP at any time.

    4. What is a daily SIP?

      Daily SIP is a mode of investment in a mutual fund in which a fixed amount of money is deducted from the investor’s bank account daily or on a trading day and invested in the designated scheme or fund.

    5. Are there any extra charges for a daily SIP?

      No, there are no additional charges for any daily SIP. The fund expense ratio remains the same for both monthly and daily SIP.

  • Best Sectors to Invest in Next 10 Years in India

    Best Sectors to Invest in Next 10 Years in India

    Over the next 10 years, several sectors in India are expected to witness consistent growth. Government policies, increasing investment, and changing consumer needs are driving these sectors forward. Therefore, when investing, it’s crucial to understand which sectors offer the most opportunities in the coming years. 

    This article will provide clear and practical information on the best sectors to invest in for the next 10 years, enabling long-term investors to make informed decisions.

    Top 10 Sectors to Invest in Next 10 Years in India

    1.  Information Technology (IT) & Digital Services Sector

    India’s IT sector is no longer limited to just software services. Today, companies are focusing more on cloud, data, automation, and digital tools, and India’s role in this is quite strong. Foreign companies trust the skills and delivery capabilities here, which ensures a continuous flow of IT-related work. Businesses within the country are also rapidly digitizing, maintaining strong domestic demand.

    Key Growth Drivers

    • Global companies’ spending on digital transformation
    • Growing need for cloud, data, and automation
    • Stability of the export-based revenue model
    • Skilled workforce and cost advantage

    Key Risks

    • Impact of a global slowdown on IT spending
    • Impact of currency fluctuations
    • Risk of rapid technological changes
    • Pricing pressure and competition

    Top 5 IT & Digital Services Stocks 

    2. Fintech & Digital Financial Services Sector

    The way financial services are delivered in India is changing rapidly. People are now using mobile apps directly for banking, payments, insurance, and investments. UPI, online insurance, and digital investing platforms have enabled the fintech sector to reach the masses. Financial products have become more accessible to people in smaller cities and new users, leading to a continuous increase in demand for this sector. In the future, the role of fintech is expected to become even stronger alongside traditional finance.

    Key Growth Drivers

    • Growing adoption of UPI and digital payments
    • Demand for insurance, lending, and investment platforms
    • Increase in the number of smartphone and internet users
    • Financial inclusion and paperless processes

    Key Risks

    • Risk of changes in regulatory rules
    • Time required to achieve profitability
    • Pressure due to high competition
    • Issues related to cybersecurity and data safety

    Top 5 Fintech Stocks 

    3. Renewable Energy Sector

    Electricity demand in India is increasing every year, and with it, the importance of renewable energy is becoming increasingly clear. The government is gradually shifting away from traditional power sources and focusing more on solar and wind energy. Large industrial companies are also adopting clean energy because it provides them with a stable power supply in the long run. Most renewable power projects operate on long-term contracts, so the income visibility in this sector is better compared to other sectors.

    Key Growth Drivers

    • Continuous increase in electricity consumption in the country
    • Clear policy support from the government for clean energy
    • Corporate companies’ inclination towards green power
    • Significant reduction in the cost of solar and wind power

    Key Risks

    • Policy changes can directly impact projects
    • Execution delays are observed in several projects
    • Issues related to transmission and grid connectivity

    Top 5 Renewable Energy Stocks 

    4. Electric Vehicles (EV) & Battery Sector

    Interest in electric vehicles in India is growing not gradually, but significantly. EV adoption is particularly rapid in two-wheelers, three-wheelers, and commercial vehicles. Rising petrol and diesel prices and concerns about pollution have also driven people to consider EVs. The government is also providing continuous support for EV manufacturing and charging infrastructure, making this sector relevant from a long-term perspective.

    Key Growth Drivers

    • Increasing awareness of fuel costs and pollution
    • Growing demand for two-wheeler and commercial EVs
    • Gradual decline in battery costs
    • Expansion of charging infrastructure
    • Government incentives and localization push

    Key Risks

    • Continuous changes in EV technology
    • Dependency on battery supply and raw materials
    • Charging infrastructure still limited in many areas
    • Risk of changes in subsidy policy

    Top 5 EV & Battery Sector Stocks

    5. Infrastructure & Capital Goods Sector

    Infrastructure development in India shows no signs of slowing down. The government is continuously investing in projects such as roads, railways, airports, and ports, as a strong infrastructure is crucial for economic growth. In recent years, it has become clear that government capital expenditure is the biggest driver of this sector. Private companies are also investing in logistics, housing, and industrial projects, providing a steady stream of work for infrastructure-related companies.

    Key Growth Drivers

    • Continuous government spending on roads, railways, and urban projects
    • Growing need for logistics and industrial expansion
    • Infrastructure demand naturally increases as the economy grows
    • Long-term projects provide consistent work visibility

    Key Risks

    • Many projects are not completed on time
    • Payment delays and working capital problems
    • Rising raw material prices impact margins
    • Difficulties in obtaining approvals and land acquisition

    Top 5 Infrastructure Sector Stocks 

    6. Healthcare & Pharmaceuticals Sector

    Healthcare needs in India are increasing every year. Treatment is becoming more expensive, awareness of diseases has increased, and people are now paying more attention to preventive health. As a result, the demand for hospitals, diagnostics, and medicines is continuously growing. Since Covid-19, there has also been a greater focus on healthcare infrastructure, which is strengthening the long-term demand for this sector.

    Key Growth Drivers 

    • Growing population and lifestyle-related diseases
    • Increasing demand for hospitals and diagnostic services
    • Strong demand for generic and specialty medicines
    • Support from both domestic and export markets

    Key Risks

    • Impact of government price controls on margins
    • Delays in regulatory approvals
    • Rising competition in healthcare services
    • Impact on profitability due to cost pressures

    Top 5 Healthcare & Pharma Stocks

    7. FMCG & Consumer Sector

    The demand for everyday essentials in India is ever-present. Food and beverages, personal care products, and household items are necessities in every home. As incomes rise and consumption increases in both cities and smaller towns, the FMCG and consumer sector benefits. Organized brands have now extended their reach to villages, ensuring that demand in this sector remains quite stable.

    Key Growth Drivers

    • Growing population and consistent demand for daily-use products
    • Urbanization and improved income levels
    • Increased reach of organized brands to smaller towns
    • Consumer shift towards premium products

    Key Risks

    • Pressure on margins due to rising raw material costs
    • Reduced pricing power due to intense competition
    • Impact of a slowdown in rural demand
    • High advertising and distribution costs

    Top 5 FMCG & Consumer Sector Stocks 

    8. Manufacturing & Industrial Sector

    The focus on manufacturing in India has clearly increased in recent years. The government wants more goods to be manufactured domestically to reduce imports and create jobs. This has led to the establishment of new factories and expansion in sectors such as auto components, electronics, chemicals, and industrial goods. Global companies are also looking at India as an alternative to diversify their supply chains, which bodes well for the long-term prospects of this sector.

    Key Growth Drivers

    • Initiatives like Make in India and PLI (Production Linked Incentive) schemes
    • Shift of global supply chains towards India
    • Increased demand in the auto, electronics, and industrial sectors
    • Emphasis on export-oriented manufacturing

    Key Risks

    • Fluctuations in raw material prices
    • Impact of global slowdown on exports
    • Pressure due to high capital requirements
    • Execution and capacity utilization risks

    Top 5 Stocks in the Manufacturing & Industrial Sector

    9.  Logistics & Warehousing Sector

    The way goods are transported in India has changed significantly in the last few years. Online shopping, organized retail, and the demand for fast delivery have led to a rapid increase in the need for logistics and warehousing services. Companies are now focusing not only on transportation but also on storage, cold chain logistics, and last-mile delivery. As businesses become more organized, this sector is expected to see continuous growth.

    Key Growth Drivers

    • Expansion of e-commerce and organized retail
    • Increasing demand for warehousing and cold storage
    • Expectations for faster delivery
    • Focus on making supply chains more efficient

    Key Risks

    • Impact of rising fuel costs on operating costs
    • Narrowing profit margins
    • Infrastructure gaps in some regions
    • Pricing pressure due to high competition

    Top 5 Logistics & Warehousing Stocks 

    10. Banking & Financial Services Sector

    In India, the banking and financial services sector is directly linked to economic growth. As people’s incomes rise, so does the demand for savings, loans, insurance, and investment products. In recent years, banks have improved their financial position, and digital banking has significantly expanded their reach. This is why this sector remains relevant for the long term.

    Key Growth Drivers

    • Sustained demand for retail and MSME loans
    • Increasing adoption of digital banking and online services
    • Formalization of the economy and increased credit penetration
    • Growing awareness of insurance and wealth products

    Key Risks

    • Impact of economic slowdown on loan repayments
    • Risk of increasing bad loans (NPAs)
    • Pressure on margins due to interest rate fluctuations
    • Impact of regulatory changes

    Top 5 Banking & Financial Services Stocks

    Read Also: Fastest Growing Industries in India

    Factors Used to Identify Best Sectors

    1. Long-Term Demand Visibility: Sectors where there is a consistent need for the product or service for many years to come are considered suitable for long-term investment. Demand based on temporary trends is not reliable.
    2. Government Policy and Capex Support: Government policies, budget allocations, and infrastructure spending directly support the growth of a sector. Sectors with consistent policy support have lower risk.
    3. Private Investment and FDI Trends: Sectors where domestic and foreign investment is increasing typically indicate future growth potential. Capital flow is a good indicator of a sector’s strength.
    4. Export Potential: Sectors that can establish themselves in the global market are not solely dependent on domestic demand. This leads to more stable growth.
    5. Technology Adoption and Scalability: Sectors that adopt technology tend to expand more rapidly and have the potential to deliver better returns in the long run.
    6. Risk-Adjusted Growth: It’s not just rapid growth that matters, but growth with balanced risk. Sectors with excessive hype often disappoint in the long term.

    Read Also: Top 10 Sectors in the Indian Stock Market

    Conclusion

    Investment opportunities will not disappear in the future; they will simply change. Some sectors will continue to thrive, and that’s where the money will flow. Therefore, it’s crucial to invest wisely and diversify across different sectors, without making hasty decisions. Investors who are patient and don’t constantly change their strategies tend to fare better in the long run.

    Start investing with Pocketful – seamless, easy, and smart investing in one platform.

    Frequently Asked Questions (FAQs)

    1. Which sector is best to invest in for the next 10 years in India?

      Sectors like IT, banking, healthcare, and energy are considered good for long-term investment.

    2. What is the fastest growing industry in India?

      Currently, the renewable energy and EV (electric vehicle) sectors are growing rapidly.

    3. Is sector investing risky?

      Yes, if all your money is invested in a single sector.

    4. How often should investments be reviewed?

      Reviewing them once a year is usually sufficient.

    5. Should beginners follow sector investing?

      Yes, but initially focus on a limited number of sectors and maintain a long-term perspective.

  • What Is Strike Price in Options Trading?

    What Is Strike Price in Options Trading?

    In India, investors are focusing on option trades, but they have to incur losses because of a limited understanding of the concept related to option terminology. One of such concepts is known as the strike price. This plays an important role in the profitability and risk of an option trade.

    In today’s blog post, we will give you an overview of the strike price, along with its key importance in option trading.

    What is the Strike Price of an Option?

    Strike price is the pre-determined price at which the option contracts are exercised. In simple terms, we can say that the strike price is the agreed price at which a trader buys or sells the underlying security on the expiry day of the option. The option buyer has only the right, but not the obligation, to buy or sell the security. 

    Importance of Strike Price in Options Trading

    The key importance of the strike price in options trading is as follows:

    1. Profit and Loss: Strike price decides whether the option is in the money, out of the money or at the money, which affects the profits and losses.
    2. Strategy: The strike price helps an individual decide on the different strategies to use.
    3. Risk: Strike price defines the risk and reward in an option trade. As in the case of a call option, a lower strike price reduces risk but increases the cost.
    4. Market Participants: Trading volume in a particular strike price reflects the future price movement, volatility, and participation of traders.

    How option values are determined ?

    There are various factors that determine the option values. A few of such factors are:

    1. Intrinsic Value: It shows how much an option is in profit at a given price of the underlying asset. However, intrinsic value alone does not decide profit or loss. An option results in a loss if the intrinsic value at expiry is lower than the premium paid.
    2. Time Value: The profitability of an option contract depends on the time value. The time value decreases over time; hence, the option value shrinks as the expiry approaches.
    3. Volatility: Volatility reflects how much the value of the underlying asset fluctuates. The higher the volatility in the price of the underlying asset the higher the option premium.
    4. Interest Rate: The Interest rate determines the value of the call and put option. A higher interest rate increases the call option value and reduces the value of the put option.

    Read Also: Call and Put Options: Meaning, Types, Difference & Examples

    The relation between the strike price and the underlying security

    The relation between the strike price and the underlying security is as follows:

    1. Determine Moneyness of Option: The strike price and underlying security help in identifying the moneyness of the option, whether it is in the money, out of the money or at the money.
    2. Affect Intrinsic Value: The intrinsic value of an option contract depends on the difference between the price of the underlying asset and the strike price.
    3. Affects Rewards: Deep out-of-the-money options are generally cheaper, but they require a strong price movement; hence underlying price can directly affect the profitability of the option.

    Difference between strike price and exercise price.

    In an option trade, strike price and exercise price are often used interchangeably. The key difference is in their meaning. The strike price is a pre-determined price at which the option contract is entered, whereas the exercise price is the price at which the investor actually exercises the option contract. 

    Difference between strike price and spot price

    The strike price refers to the fixed price at which the investor enters an option contract, which allows the holder to buy or sell the underlying asset. On the other hand, the spot price refers to the current market price of the underlying asset at a given time. The strike price remains fixed throughout the life of the option contract.

    Read Also: Options Trading Strategies

    Moneyness of Option

    There are three types of moneyness of options in India, the details of which are as follows:

    1. In-the-Money (ITM) Option: When an option is in the money, it is considered to have positive intrinsic value. In the case of a call option, the spot price must be greater than the strike price, whereas in the case of a put option, the spot price must be less than the strike price. In both of these cases, the option contract is considered in the money.
    2. Out-of-the-Money (OTM) Option: An out-of-the-money option has no intrinsic value. In the case of a call option, the spot price must be less than the strike price, and in a put option, the spot price must be greater than the strike price. Out-of-the-money options are cheaper and are highly volatile.
    3. At-the-money: This option does not have any intrinsic value. As in this case, the spot price is equal to the strike price. But at-the-money option carries the highest time value in an option chain.

    Factors to consider before selecting a strike price

    There are various factors to consider before selecting a strike price; a few of such factors are mentioned below:

    1. Market Movement: Before choosing a strike price, one needs to predict the market movement in future. If the momentum is bullish, one can prefer an ATM or OTM Call Option, and if the momentum is bearish, one can select an ATM or OTM Put Option.
    2. Time to Expiry: The premium decay in the strike price depends on the time to expiry. Short-term expiry contracts are preferred due to the faster decay of time.
    3. Volatility in the Market: Volatility can directly impact the change in option price. In case of high volatility, premiums are expensive, and the ATM and ITM strike prices are safer. OTM options are cheaper, offering better risk-reward.
    4. Risk – Reward Ratio: One should use a stop-loss while executing an option trade. And should select the strike price which offers the best risk-reward ratio.

    Read Also: What is an ITM (In The Money) Call Option?

    Conclusion

    On a concluding note, the strike price is the essential element for investing in options. Choosing the right strike price determines the profitability of an option trade. The relation of the strike price to the underlying asset can affect the profitability. Selecting the strike price is not a prediction, as various factors, such as the time value of money, etc., also play a key role in it. However, it is advisable to consult your investment advisor before executing any trade in options.

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    Frequently Asked Questions (FAQs)

    1. Does selecting the in-the-money option guarantee profit?

      No, selecting the in-the-money option does not guarantee profit. Profitability depends on various factors such as market movement, volatility, and volume in option contracts.

    2. Which strike price is better for conservative traders?

      For conservative investors, at-the-money or in-the-money options are suitable as they offer a better risk-to-reward ratio.

    3. Who decides the strike price?

      Strike prices of option trades are decided by the stock exchange.

    4. Why are out-of-the-money options cheaper?

      OTM options are cheaper because they do not have any intrinsic value.

  • Why Tobacco Stocks Are Falling in India: ITC, Godfrey Impact

    Why Tobacco Stocks Are Falling in India: ITC, Godfrey Impact

    Tobacco sector stocks have recently shown weakness, with major names like ITC and Godfrey Phillips experiencing declines. The government has announced a new tax policy for cigarettes and tobacco products, effective February 1, 2026, which includes an additional excise duty along with GST. This change is expected to increase the overall tax burden, potentially impacting companies’ profits and sales, a concern that has made investors cautious.

    Why Are Tobacco Stocks Falling? 

    1. Sudden Fear Over Government’s New Tax Policy: The central government has announced that a new excise duty will be implemented on cigarettes and tobacco products from February 1, 2026, which will be an additional tax on top of the existing GST. This tax has been set at a rate of ₹2,050 to ₹8,500 per 1,000 cigarettes, which is significantly higher than before. This will increase the cost burden on companies and could lead to price increases.
    2. Heavy Selling Increases Investor Fear: Immediately after the announcement of the new tax, ITC shares fell by approximately 8–10%, and Godfrey Phillips shares saw a loss of about 10–19%. This decline also put pressure on the Sensex and the FMCG index in the stock market, as investors factored in the impact on these companies’ future earnings.
    3. Growing Concerns Over Earnings and Profitability: Analysts suggest that the tax increase could lead to higher retail prices for cigarettes and a potential decrease in sales, negatively impacting companies’ margins and EPS. Several brokerage firms have downgraded ITC’s rating or reduced their future forecasts. This fear was directly reflected in the decline in share prices, as investors became uncertain about future earnings.
    4. Policy Uncertainty Affects Credibility: The frequency and scale of changes in tax and GST regulations on cigarettes have increased in recent times. This has left investors uncertain about what further changes might occur in the future. 

    How ITC Is Impacted the Most

    1. Over-reliance on the cigarette business: While cigarettes account for a limited share of ITC’s total revenue, they contribute the most to its profits. A large portion of ITC’s total profit comes from cigarettes, so any increase in taxes directly impacts the company.
    2. Role in funding other businesses: ITC’s FMCG, hotel, and agri-businesses are not yet fully self-sustaining. The cash flow generated from the cigarette business plays a crucial role in running and expanding these businesses. Increased taxes could weaken this support.
    3. Market concerns regarding margins: Following the new tax policy, the market fears that ITC will either have to increase prices or reduce its margins. In either case, profits could be under pressure, even though the company is diversified.
    4. Short-term versus long-term impact: In the short term, ITC’s share price may remain under pressure due to uncertainty regarding earnings. The long-term impact will depend on how effectively the company can pass on the increased taxes and how stable the sales volume remains.
    Why Are Tobacco Stocks Falling

    What Changed in the Cigarette Tax Structure?

    Tax ComponentBefore Feb 1, 2026From Feb 1, 2026
    GST (Goods & Services Tax)Previously, it was primarily subject to 28% GST + Compensation Cess.Now a new slab of 40% GST will be implemented (the compensation cess will be removed).
    Excise DutyPreviously, there was only a small amount of excise duty.The government has now imposed a new excise duty of ₹2,050-₹8,500 per 1000 cigarettes, which is in addition to the GST.
    Compensation CessDifferent cesses were levied on top of GST.The Compensation Cess has been abolished and replaced with a structured duty.
    Overall Effective Tax BurdenPreviously, due to GST + compensation cess, it was approximately 50–53%.Now, with 40% GST + new excise duty, the total burden will be approximately the same or slightly higher, which will make cigarettes more expensive.

    Read Also: List of Best Tobacco Stocks in India

    Godfrey Phillips and Other Tobacco Companies

    1. Limited Pricing Power: Companies like Godfrey Phillips don’t have the same market dominance as ITC. Due to their limited brand presence and distribution network, these companies cannot easily raise prices after tax increases.
    2. Greater Impact on Volumes: Even a slight price increase can directly affect these companies’ sales. Their customer base is more price-sensitive, increasing the risk of a decline in sales volume.
    3. Pressure from Rising Costs: The impact of rising costs of raw materials, packaging, and taxes is felt more acutely by smaller players. Their lack of economies of scale makes it difficult for them to absorb these costs.
    4. High Volatility in Share Prices: Due to their smaller market capitalization and lower liquidity, these stocks experience sharp declines or surges in response to news. This is why stocks like Godfrey Phillips show a much more pronounced reaction compared to ITC.

    What Investors Are Worried About After ITC Share Fall

    1. The extent to which increased taxes can be passed on : The challenge for ITC is determining how much of the increased tax burden can be passed on to consumers through price increases. Too large a price hike could impact demand, while a smaller increase could put pressure on margins.
    2. Potential pressure on sales volume: Cigarette consumption is sensitive to price increases. Investors are concerned that post-tax price hikes could lead to a decline in volume, particularly in lower-price segments.
    3. Questions about demand sustainability: Frequent tax increases reduce the affordability of cigarettes. In the long run, this could limit demand growth for organized tobacco companies.
    4. Focus on cash flow and dividends: ITC’s strong cash flow is primarily derived from its cigarette business. If this comes under pressure, investors become cautious about the sustainability and growth of dividends.
    5. Increased competition from the illicit market: Higher taxes make illegal cigarettes cheaper. This could negatively impact the sales and market share of legal companies.

    What Should Investors Watch Going Forward

    1. Management Strategy on Pricing and Margins: Investors should pay close attention to management commentary from companies, particularly regarding how price increases will be implemented and margins managed in the wake of increased taxes.
    2. Quarterly Sales and Volume Trends: Sales and volume figures for cigarettes in the coming quarters will be crucial. These will reveal the extent of the impact of the tax increase on demand.
    3. Information on Changes in Tax Implementation: Any clarification or modification from the government regarding the timing, rate, or structure of the tax could directly impact share price movements.
    4. Indications Regarding Future Tax Policy: Whether there are indications of further tax increases on the tobacco sector will be important for investor confidence. Any stricter stance could increase volatility in the sector.

    Conclusion

    The decline in the tobacco sector is due to tax-related concerns, not a sudden weakening of the business itself. The full impact of the increased taxes on prices and sales will become clear in the coming months. Currently, the market is reacting to this uncertainty. In such an environment, it’s crucial to focus on facts and company actions rather than market sentiment.

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    Frequently Asked Questions (FAQs)

    1. What tax change did the government implement?

      The government has imposed a new excise duty on cigarettes ranging from ₹2,050 to ₹8,500 per 1,000 sticks, effective February 1, 2026.

    2. Did GST rates on tobacco products change?

      No, there has been no change in the GST rate. The change is only in the additional excise duty.

    3. How much of the retail price is tax now?

      Now, approximately 53% of the retail price of cigarettes goes towards taxes.

    4. Why did ITC shares fall so much?

      ITC shares fell sharply due to concerns about increased costs, reduced margins, and the potential impact on sales as a result of the new duty.

  • Copper Price Predictions for the Next 5 Years in India

    Copper Price Predictions for the Next 5 Years in India

    Metals generally do not grab headlines like stocks and gold, but they are also quite impactful in the economic development of a country. There are various metals, but copper is generally considered one of the most in-demand. 

    In today’s blog post, we will give you a copper price prediction for the next 5 years in India, along with the historical trend and how you can invest in it with the Pocketful trading application.

    Historical Trend of Copper Price in India 

    The long-term historical trend of copper prices in India is as follows:

    1. 2015-2020: Before 2020, copper prices were relatively stable, traded within a certain range. The prices traded in the range of INR 350 – 450 per kg, and the high was made because of increased demand from China. Additionally, the demands remain stable because of traditional construction and the power sector.
    2. Time of COVID: During the COVID-19 period, the copper prices fell to INR 330 per kg due to the lack of demand owing to the countrywide lockdown and suspension of infrastructure-related activities. 
    3. Post-COVID Recovery: After the lockdown was removed, the economic activities recovered, and the prices of copper did as well. Electric vehicles also consume copper as an important material, and this is another factor that is causing the copper price to rise.
    4. 2021-2025: The prices of copper were on the higher side, but fluctuated due to global demand and supply dynamics. In 2025, the copper prices made a new high because of green energy demand, mine disruption and limited inventory. AI-driven data centres also help in increasing the price of copper.

    Past 5 Years Copper Returns

    YearCopper Price (INR)
    2021-2022720
    2022-2023820
    2023-2024860
    2024-2025880
    2025 (Current)1150
    Copper Price Predictions for the Next 5 Years in India
    Copper Price Predictions for the Next 5 Years in India

    Next 5 Years Outlook of Copper Prices in India

    The next 5-year outlook of copper prices in India is as follows:

    YearExpected Price (INR/KG)OutlookKey Factor
    20261013Surge in DemandDue to strong demand from various sectors, including renewable energy, power, and infrastructure, the price of copper is expected to rise.
    20271038Supply ConstrainIt is expected that in 2027, due to ageing mines, the supply will be on the lower side.
    2028963Increasing SupplyThe supply of copper will increase by 2028, and higher recycling will ease pressure on copper prices. Also, the adoption of EVs is expected to peak in 2028, which requires a huge amount of copper for batteries and charging stations.
    2029992ConsolidationWith renewed demand from different cities and urban mining will become a major influencer of price in 2028 as primary mining capacities will reach their limit.
    20301087ReboundLong-term structural demand for copper will support its price to make new highs. Also, the energy transition and EV penetration will act as a catalyst for copper demand and price.

    Importance of Copper Prices in the Economy

    Copper is a crucial metal for the economy as it is widely used in different industries such as power generation, wiring, electronics, construction, etc., hence it directly affects the production cost across these sectors. It also affects the profitability of companies engaged in different sectors. Rising copper prices reflect the growth of the country. Also, the demand for copper is linked to various factors such as urbanisation, electrification, industrial growth, etc. 

    Read Also: Steel Price Predictions for the Next 5 Years in India

    Factors Affecting Copper Prices

    1. Economic Growth: The demand for copper rises with the economic growth of the country due to different factors such as urbanisation, construction, etc. 
    2. Mining Outputs: Declining production level will lead to supply constrain, eventually impacting the prices positively.
    3. Electric Vehicles: Due to the increasing concern about environmental issues, there is a transition towards electric vehicles, thus leading to enhanced demand for copper due to its excellent conductive properties of electricity.  
    4. Inventory: The Inventory of copper has a direct impact on the prices of copper; that is, a low inventory level increases the prices, and a high inventory level lowers the prices.  
    5. Government Regulations &  Policies: Good government policies and trade laws influence the prices and supply of copper.  
    6. Renewable Energy: There will be a shift to renewable energy sources such as solar, wind, and power grid infrastructure, which will result in a growing demand of copper long-term.

    Read Also: Gold Rate Prediction for Next 5 Years in India (2026–2030)

    Should You Invest in Copper Companies

    One should invest in copper companies because of the following reasons:

    1. Rise in Demand: Copper is used as an essential raw material for different sectors such as power transmission, renewable energy, electric vehicles, etc. Therefore, the demand for copper tends to increase over time.
    2. Use of Green energy: Globally, due to environmental concerns, people are shifting towards green and renewable sources of energy, such as electric vehicles, which gradually increases copper consumption. 
    3. Diversification: One can reduce the risk of their portfolio by investing in companies engaged in the production and mining of copper.

    Read Also: Silver Rate Prediction for the Next 5 Years in India

    Conclusion 

    To sum up, the prices of copper are expected to increase in the coming years in India due to several factors, among which are the increased demand and the transition to renewable energy. This, therefore, gives investors a good chance to earn wealth through investing in companies involved in copper production, marketing and distribution. One needs a demat and trading account to make the investment, which can be opened without any charges with Pocketful, and it also provides free delivery trade brokerage. But you should still seek advice from your investment advisor before investing. However, it is advisable to consult your investment advisor before making any investment.

    Frequently Asked Questions (FAQs)

    1. What industries will be impacted by the copper price fluctuations?  

      Power, electrical equipment, renewable energy, and electric vehicles are the most impacted sectors by changes in copper prices.

    2. Is now the right time to invest in companies that deal with copper?  

      This is indeed a good time to invest in copper-related businesses because demand for infrastructure and green energy is likely to push copper prices high.

    3. What will be the effect of government expenditure on the price of copper in India?  

      The demand for copper will increase as more government money is spent on infrastructure, rail and power-grid projects, and this may lead to an increase in copper prices in the long run.

    4. Which are some of the copper-related companies in India?  

      Some of the copper-related companies in India are Hindustan Copper Limited, Hindalco Industries Limited, Precision Wires India Limited, Madhav Copper Limited and others.

    5. How much can we expect to pay for copper in five years?

      Within the next five years, copper prices will be in the range of 1,000 to 1,200 INR per kilogram, but this can be affected by other factors.

  • Book Value vs Market Value of Shares: Meaning, Formula & Key Differences

    Book Value vs Market Value of Shares: Meaning, Formula & Key Differences

    Before investing in shares, everyone is concerned about the valuation of shares, whether they are fairly valued or not, while a few investors focus only on the current market price of the share. Both book value and market value plays an important role in making informed decisions.

    In today’s blog post, we will give you an overview of the book value and market value of shares, along with their key differences.

    What is the Book Value of Shares?

    Book value of a share refers to the net asset value of the company, which is derived after adjusting its liabilities, and it is divided by the total number of outstanding shares. It reflects the value of each share unit, which is calculated based on the company’s financials.

    Features of the Book Value of Shares

    The key features of the book value of the shares are as follows:

    1. Financial Data: The book value of shares is calculated based on the company’s financial information, including assets and liabilities.
    2. Net Worth: It reflects the net worth of the company, which is derived after adjusting for all its liabilities.
    3. Higher the Better: The higher the book value of the company, the better the investment opportunity.
    4. Fundamental Investing: The book value of the company is generally used by the investor for picking right stocks.

    Importance of the Book Value of Shares

    The key importance of the book value of shares is as follows:

    1. Actual Valuation: The book value helps in the identification of the actual value of shares based on the financial statements, which helps an investor in identifying whether the shares are fairly valued or not.
    2. Fundamental Analysis: It helps in analysing a company based on the fundamentals to find out its actual value.
    3. Reduces Risk: Investing in stocks which are trading in a range around its book value is considered a safe bet by investors.
    4. Strength: If the book value of the companies is increasing over a period, it reflects the effective management and strong financials and growth in the company.

    Formula to Calculate the Book Value of Shares

    The formula to calculate the book value of a share is as follows:

    Book Value of Share = (Total Assets – Total Liabilities – Preference Share Capital) / Total Number of Equity Shares Outstanding

    Example of Book Value

    Suppose a company named ABC Limited has a total asset of INR 12 crore, liabilities of 7 crore, and preference share capital of 1 crore and 8 lakh of equity shares.

    Let’s calculate the book value of ABC Limited. 

    By applying the formula 

    Book Value per share = Total Assets – Total Liabilities – Preference Share Capital / Total Outstanding Equity Share

    = (12cr. – 7cr. – 1cr.) / 8lakhs 

    = 4cr. / 8lakhs

    = 50 INR

    Hence, the book value per share is 50 INR.

    Read Also: Intrinsic Value vs Book Value

    What is the Market Value of Shares?

    The market value of a share refers to the publicly traded current price of a share at which the shares of a company are traded on the stock exchange. The market value of shares is derived from the demand and supply of shares, which is influenced by the sentiments of investors, the performance of the company, future growth expectations, etc.

    Features of Market Value of Shares

    The key features of the market value of shares are as follows:

    1. Fluctuations: The market value of shares changes on a real real-time basis; it changes in a fraction of a second depending upon the liquidity of the share.
    2. Demand and Supply: The price discovery is primarily impacted by the demand and supply of the shares by the investor.
    3. Market Capitalisation: The market capitalisation of the company is calculated based on the market value of shares.
    4. Differ from Book Value: The market value of shares can differ from the book value of shares. It can either be higher or lower than the book value, depending on the various factors.

    Importance of Market Value of Shares

    The key importance of the market value of shares is as follows:

    1. Decision Making: The Market value of the company can help an investor in deciding whether to buy, sell or hold the shares. 
    2. Comparison: The market value can also be used by the investor to compare the market value of different shares to make an informed decision.
    3. Market Sentiment: The increasing value of shares represents the positive market sentiment, and vice versa. As market sentiment is a crucial factor for making investment decisions.
    4. Corporate Actions: The market value of shares is significantly impacted by the various corporate actions, such as buybacks, bonus shares, stock splits, etc.

    Difference Between Book Value and Market Value of Shares

    The key difference between book value and market value of shares is as follows:

    ParticularBook ValueMarket Value
    CalculationIt is calculated based on the assets, liabilities of the company.The market value of the company is calculated based on the demand and supply of the shares.
    ChangesBook value is historical in nature.Market value is dynamic and changes on a real real-time basis. 
    ReflectionIt is reflected in the financial statement of the company.The market value of a share is reflected on the stock exchange on which it trades.
    UsageThe book value of a share is generally used by the long-term investor.The Market Value of a share is often used by traders.
    Sentimental ImpactThe book value of the share is not impacted by the sentiment of investors.The market value of a share is highly impacted by the investors’ sentiments.

    Read Also: Stock Market vs Real Estate: Which Is Better?

    Conclusion

    On a concluding note, book value and market value serve different purposes but are equally important for investors to make investment decisions. The book value of the share reflects the financial strength of the company and is calculated based on the assets and liabilities of the company. On the other hand, market value of the company reflects the current share price of the company, which an investor is willing to pay. However, investing based only on the book value or market value of a share is not a sensible decision. One should consult their investment advisor before making an informed decision.

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    Frequently Asked Questions (FAQs)

    1. Which is more important, market value or book value?

      Both market value and book value are equally important; book value helps in assessing the intrinsic value of a share, and market value helps in understanding the sentiment of the investor.

    2. Why book value change over time?

      Book value changes over time based on the company’s profitability, assets, liabilities, etc.

    3. Can the market value of a share be lower than the market value?

      Yes, there are various stocks which trade below their actual book value. This happens because investors think that the actual value of the asset is less than its recorded book value.

    4. Is a stock undervalued if its market value is lower than its book value?

      Not always. A market value lower than book value may indicate undervaluation, but it can also reflect poor business performance, weak future prospects, or sector-specific challenges. Investors should combine this with fundamental analysis.

    5. Why do long-term investors focus more on book value?

      Long-term investors use book value to assess a company’s intrinsic strength, financial stability, and asset backing, making it useful for fundamental and value investing strategies.

  • Why Share Market is Down Today? Reasons Behind Stock Market Fall

    Why Share Market is Down Today? Reasons Behind Stock Market Fall

    Think about a regular market morning. You open your app, expecting a calm start. Instead, prices are slipping one by one. There is no single breaking headline, yet the market feels heavy. This is when the question comes up naturally: why is the market down today.

    Most market falls begin with hesitation, not fear. Investors take a pause and start to reassess the investments. When large players slow their buying, prices drift lower. As selling builds, it starts to look sharper than it actually is. That is when many wonder why the share market went down today, even though the shift started quietly.

    In this blog, we talk about the subtle signals behind such market declines and how to read them calmly, without reacting to noise.

    Reasons Behind the Share Market Down Today

    A market fall often looks sudden, but it usually builds up quietly. Investors start feeling unsure, trading activity slows, and selling increases in phases. This mix of behaviour becomes the reason for market fall today, even when there is no major bad news.\

    Share Market Down Today

    1. Profit Booking Becomes the Easy Choice

    After a strong run, prices begin to look stretched. Investors who entered earlier decide to exit and protect gains. This selling is cautious, not fearful. As more people follow, prices drift lower through the day. At the same time, buyers stay on the sidelines and volumes remain moderate, signalling profit booking rather than panic. Such phases are healthy pauses that help the market reset before the next move.

    2. Global Uncertainty Affects Local Confidence

    Markets across countries are connected by sentiment. Weak signals from global markets make investors hesitant at home. Instead of buying dips, many prefer to wait, which keeps demand low.

    3. Interest Rate Expectations Create Pressure

    Rising rate expectations impact borrowing costs and future earnings. Even without an announcement, this uncertainty makes investors reduce exposure to riskier stocks.

    4. Institutional Activity Drives the Index

    Large institutions trade in volumes that move prices quickly. When they sell or reduce positions, heavyweight stocks fall first, pulling indices down with them. This  creates a ripple effect across the market, even if broader fundamentals remain unchanged. Smaller investors often react after seeing index pressure, which adds to the temporary weakness.

    5. Sector-Level Weakness Spreads

    A fall often starts in one or two key sectors. When banks or IT stocks weaken together, market sentiment turns negative, even if smaller stocks remain steady.

    This is how a normal trading day slowly turns into a market decline. And this is what gives you the answer to why the market is falling today with no need for speculation or guesswork.

    Read Also: 10 Key Factors Affecting the Indian Stock Market Explained

    Major Indian Share Market Crashes and Their Reasons

    Indian markets have seen several sharp falls over the years. Each crash had its own trigger, but the common link was loss of confidence. The major ones that you must know are:

    YearMarket EventDeclines from peak %What HappenedMain Reason for the Fall
    1,992Harshad Mehta Scam50+Stock prices crashed after a long bull run driven by artificial liquidity.Market manipulation using banking funds. Once exposed, trust collapsed overnight.
    2000Dot-com Bust (India Impact)30-40Technology stocks fell sharply after heavy speculation.Overvaluation of IT stocks without real earnings support.
    2008Global Financial Crisis60Sensex lost more than half its value within months.The global banking crisis led to foreign investor selling and liquidity crunch.
    2020COVID-19 Market Crash40Markets fell sharply within weeks.Sudden lockdowns and fear of economic shutdown.
    2022Interest Rate and Inflation Shock25Markets turned volatile after a strong recovery phase.Rising inflation, rate hikes, and foreign fund outflows.

    Why the Market Is Falling in Recent Sessions

    The market has not fallen because something broke overnight. It is falling because confidence is thinning out. Investors are slowly stepping back as too many risks are lining up at the same time. When that happens, even good news stops working.

    1. Prices Ran Ahead of Reality

    After months of strong gains, stock prices moved faster than company earnings. Valuations started to feel stretched. Investors are now asking a basic question. How much upside is really left at these levels? This doubt naturally leads to selling.

    2. Growth Is Strong, but Leverage Is Rising

    India’s GDP growth remains healthy. But it is being supported by higher borrowing and government spending. Rising leverage at both corporate and household levels makes investors cautious. Growth funded by debt always invites closer scrutiny.

    3. Global Money Is Finding Safer Options

    US Treasury yields are offering stable and attractive returns. For global investors, this changes the equation. When safer assets start paying well, money moves out of equities, especially emerging markets like India.

    4. Foreign Investors Are Reducing Risk

    Foreign funds have been steadily cutting positions. This is not panic selling. It is risk management. Their selling hits large stocks first, which pulls the broader market down even if smaller stocks stay steady.

    5. No Fresh Story to Buy Right Now

    Recent earnings did not disappoint, but they did not excite either. Most positives were already priced in. Without a new growth trigger, buyers are unwilling to chase prices higher.

    6. Geopolitical Stress Is Back in Focus

    The Russia–Ukraine conflict has seen fresh escalation. Markets may appear used to it, but every flare-up revives concerns around energy prices, inflation, and global stability. This keeps investors defensive.

    7. Global Policy Signals Are Unclear

    Uncertainty around US trade decisions and interest rates is another reason. It adds to the confusion. And when there is one such situation where the policy is blurred, making a decision is hard. It impacts the investor decisions, and then they prefer to wait rather than trade.

    8. Sentiment Has Shifted, Not Fundamentals

    Importantly, this fall is about mood, not collapse. Businesses are still operating well. The economy is still growing. But markets move on expectations, and right now, expectations are being trimmed.

    Read Also: What is Gap Up and Gap Down in Stock Market Trading?

    What You Should Do When the Market Falls

    A falling market can make even experienced investors uneasy. Prices drop, news turns negative, and it feels like everyone knows something you do not. In moments like these, the right response is not speed. It is clear. How you act during a fall often decides your long-term outcome.

    1. Stop and Understand What Is Really Happening

    Before doing anything, try to understand why the market is falling. Is it due to global cues, interest rates, or short-term fear? Most falls are driven by sentiment, not by businesses suddenly failing. Knowing this helps you avoid emotional decisions.

    2. Do Not Sell Just to Feel Relieved

    Selling during a fall often brings temporary comfort, not better results. Many investors sell only to see prices recover later. Unless the reason you invested has changed, reacting to price movement alone can lock in losses.

    3. Shift Focus From Prices to Businesses

    Market prices move daily, but businesses change slowly. Look at whether companies are still growing, managing debt well, and operating normally. If the business story is intact, short-term price drops matter less.

    4. Use the Fall to Review, Not Rebuild

    A market correction is a good time to review your portfolio calmly. Check whether your asset allocation still matches your risk comfort. Make adjustments only if something no longer fits your goals, not because prices are falling.

    5. Invest Gradually If You Have Surplus Money

    If you have extra funds, spreading investments over time during a decline can help reduce risk. This approach avoids the pressure of picking the exact bottom and keeps emotions in check.

    6. Avoid Constant Market Watching

    Checking prices repeatedly increases anxiety. It often leads to impulsive moves. Markets fluctuate more in the short term than people realise. Stepping back helps you think clearly.

    7. Keep Liquidity and Peace of Mind

    Having some cash available gives you flexibility. It allows you to handle emergencies without selling investments at the wrong time and keeps you calm during volatile periods.

    8. Remember That Falls Are Part of the Journey

    Every long-term market chart includes sharp declines. Yet, markets have recovered from each one over time. Patience and discipline usually reward investors more than perfect timing.

    Read Also: 20 Things to Know Before the Stock Market Opens

    Conclusion

    Market declines often create anxiety, but they are a natural part of investing. The reason for market fall today is usually a mix of global uncertainty, valuation pressure, and cautious investor behaviour. Once you understand why markets fall today, reacting with patience becomes easier than reacting with fear.

    For clearer market insights, practical investing guides, and tools that help you stay calm during volatility, explore Pocketful’s research and learning resources. Make informed decisions and invest better with the right information on your side.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    Frequently Asked Questions (FAQs)

    1. Is a market fall a good time to invest?

      A market fall can offer opportunities, but timing matters less than discipline. Investing gradually and focusing on strong businesses is usually safer than trying to predict the exact bottom.

    2. Should I stop my SIP when markets are falling?

      Stopping a SIP during a fall often works against long-term returns. Continuing SIPs allows you to buy more units at lower prices over time.

    3. How long do market corrections usually last?

      There is no fixed duration. Some corrections recover in weeks, others take months. What matters more is whether the economy and businesses remain stable.

    4. Does a market fall always mean a crash is coming?

      No. Most market falls are normal corrections. Crashes are rare and usually linked to major economic or financial shocks.

    5. How can beginners handle market volatility better?

      Beginners should focus on long-term goals. They must avoid frequent trading, stay diversified, and limit exposure to daily market noise.

  • Steel Price Predictions for the Next 5 Years in India

    Steel Price Predictions for the Next 5 Years in India

    Steel is a crucial raw material which drives the Indian economy. Steel is considered the backbone of major sectors such as construction, infrastructure, and the automobile etc. Understanding how the steel prices will behave next year is essential before making any investment in the Steel Industry.

    In today’s blog post, we will give you a prediction about the steel price for the next 5 years in India.

    Historical Trend of Steel Price in India

    The historical trend of steel prices in India can be divided into the following three different parts:

    • Pre-COVID period: During this period, the prices of steel tended to be stable and had seen cyclical fluctuations. Because government spending on infrastructure has increased, domestic steel prices have increased due to the demand in the automobile and capital goods, etc, which also acts as a catalyst. 
    • Pandemic and  Recovery: The steel prices have shown immense volatility during the COVID period. As the nationwide lockdown happened, there was a sharp decline in industrial and infrastructure activities. The steel prices have seen a decline in the prices. However, once the lockdown was lifted, economic activities started and the steel prices saw a sudden spike in price because of robust demand. Also, at the same time, the global supply chain was disrupted, leading to an increase in the price of steel.
    • Recent Scenario: Recently, in the last few years, the steel prices have been volatile because of inconsistent demand from different sectors and global tensions around the globe. However, various factors such as monsoon-related slowdown and cautious buying by the end user.

    Past 5 Year Steel Returns

    YearSteel Prices (INR)
    2021-202296079
    2022-202374665
    2023-202468365
    2024-202563541
    2025 (Current)48000
    Past 5 Year Steel Returns

    Steel Price Predictions for Next 5 Years in India

    The yearly outlook of steel prices is mentioned in the table below:

    YearPrice of Steel (INR/Kg)OutlookKey Factor
    202650Bottoming OutThe prices of steel traded at a 5-year low because of various factors such as weak global demand and high imports. And it is expected that due to government policies, the steel prices will bottom out.
    202752Cyclical MovementThe steel prices are expected to increase and will make a new high because of favourable policies and intensive infrastructure spending by the government.
    2028 – 202955CorrectionAs the steel companies increase production, it will increase the supply of steel, easing the supply constraints. Hence, the steel prices might see a small correction. 
    203060PremiumBecause of the introduction of carbon taxes and green steel regulations, the prices of high-grade steel will increase. The whole phenomenon will reflect the cyclical nature of steel prices.

    Current Steel Market Scenario

    India has been experiencing strong momentum in steel prices. Currently, steel prices are trending at higher levels when compared to the start of the year due to strong domestic demand and a gradually improving global mood. This has been mainly due to infrastructure spends, strong construction activities, and government Capex plans in India.

    Another factor supporting steel prices is the global supply situation. Production curbs in certain regions, higher raw material costs, and cautious output strategies by major producers have helped keep supply in check. At the same time, a relatively weaker rupee has made imports costlier, lending additional support to domestic prices.

    Read Also: Gold Rate Prediction for Next 5 Years in India (2026–2030)

    Importance of Steel Prices in the Economy

    Steel is one of the most important components in an economy, as it is considered a major raw material for various sectors of the economy, such as infrastructure, automobile, capital goods, etc. The rise in steel prices acts as a barometer of economic growth. A rise in steel prices in the economy will benefit the steel producers and companies engaged in producing steel. As steel is the crucial raw material for different sectors, one can easily invest in steel companies through Pocketful, as it offers free brokerage on delivery trades.

    Factors Affecting Steel Prices

    The factors which affect the steel prices are as follows:

    1. Cost of Raw Materials: The production of steel depends on various raw materials, including iron ore, coking coal, and limestone. Any disruption in the supply chain or raw material prices can significantly impact the price of steel.
    2. Demand: The second factor which impacts the prices of steel is the domestic demand. If the demand for steel in different sectors like infrastructure, automobile etc. is on the higher side, the prices will increase and vice versa.
    3. Cost of Energy and Power: Producing steel requires a lot of energy and power. Increasing fuel and power prices can lead to an increase in the operating cost of steel-producing companies, which eventually increases the price of steel.
    4. Exchange Rates: If India’s currency gets weaker against the US dollar or other currencies, then it will make the import of coking coal, etc., expensive, leading to an increase in steel prices.
    5. Transportation Cost: The rate of diesel, freight, etc., can directly impact the availability of raw material and steel in different parts of the country. Any increase in transportation cost will increase the price of steel.

    Should You Invest in Steel Companies

    One should invest in steel companies because of the following reasons:

    1. Domestic Demand: The consumption of steel in India is expected to increase in the coming years due to increasing infrastructure spending by the government. This will push the steel prices up.
    2. Government Policies: The government of India is taking numerous steps to protect the Indian steel industry from cheaper imports by introducing anti-dumping duties.
    3. Capital Expenditure: The Indian steel companies are spending heavily in capital expansion and technological upgradation. This expansion will provide them with benefits from the expected increase in demand.
    4. Dividend Income: Most steel companies often distribute dividends to their shareholders along with the benefit of capital appreciation. This dividend income is suitable for conservative investors seeking regular income. 

    Read Also: Silver Rate Prediction for the Next 5 Years in India

    Conclusion

    On a concluding note, India is focusing on infrastructure development, which increases the demand for steel in the coming years, along with the steel prices. And at the same time, domestic steel companies are expanding their production capacity. In the next five years, the steel prices are expected to remain stable with moderate price fluctuations. Therefore, one can invest in the companies engaged in the manufacturing of steel by opening a lifetime free demat account with Pocketful, as it also offers an advanced trading platform, but one should consult their investment advisor before making any investment.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    Frequently Asked Questions (FAQs)

    1. What are the key factors which affect steel prices?

      The key factors which impact the steel prices include raw material cost, government spending on infrastructure, import duties, etc.

    2. How does infrastructure spending impact steel prices?

      Steel is the key component of infrastructure. Large-scale projects such as highways, railways, housing, etc., increase steel demand.

    3. How can I invest in steel companies?

      One can easily invest in steel companies by opening a lifetime free demat and trading account with Pocketful and then purchasing the stock of their choice.

    4. How can renewable energy impact the steel price?

      Transition toward green steel production can increase the cost due to capex in technology, hence increasing the steel price in the medium term.

    5. Can I invest in steel companies for the long term?

      Yes, one can invest in steel companies for the long term as the demand for steel in India is strong, and investors are required to invest in fundamentally strong companies only after consulting their investment advisor.

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