Following 40 days of tension between the United States and Iran, a two-week ceasefire has come into effect, bringing a sense of relief to global markets. In India, the Sensex surged by 2,600 points and the Nifty by 750 points, while crude oil prices dropped by nearly 13% to reach $95. The major question now facing investors is which sectors will rise and which will fall, and what impact the market will experience depending on whether the conflict ends or continues.
Ceasefire Talks: Key Developments You Should Know
A Two-Week Ceasefire, But No Permanent Solution
Following nearly 40 days of heightened tension, the United States and Iran have reached an agreement to halt attacks for a period of two weeks. For now, this serves merely as a pause to facilitate the commencement of dialogue; a permanent peace settlement has not yet been secured.
The Objective of the Talks
The aim of this ceasefire is to prevent the situation from deteriorating further and to forge a lasting agreement for the future. This initiative also encompasses efforts to restore peace across the broader Middle East region.
Iran’s Peace Proposal: Key Highlights
Key Demand
Details
Permanent ceasefire
Talks of Peace Extending to Iran, Iraq, Lebanon, and Yemen
Strait of Hormuz
Reopening the Path for Oil and Trade
Sanctions removal
Demand for Lifting US Economic Sanctions
Frozen assets
Demand for the Repatriation of Iranian Funds Stranded Abroad
Compensation
Compensation for War Losses
Nuclear stance
Will not build nuclear weapons, but the enrichment issue remains.
The Foremost Issue: The Nuclear Program
The most significant sticking point revolves around uranium enrichment. This specific issue is expected to remain the central focus of all future negotiations.
The Current Situation
At present, the atmosphere remains relatively calm, though a sense of uncertainty still persists. The outcome of the negotiations scheduled for the coming days will ultimately determine whether or not this ceasefire is extended.
Timeline of US-Iran Conflict
Year / Period
What Happened
1979
Seizure of the US Embassy this is where relations deteriorated.
Indian Market Rally: Following news of a ceasefire, the Indian market witnessed a strong rally. The Sensex surged by nearly 2,600 points, while the Nifty climbed by 750 points. Investor confidence returned, leading to increased buying activity in the market.
Global Markets Support: Asian markets also recorded robust gains. Global sentiment improved as geopolitical tensions eased and oil prices declined.
US Market Trend: The US market displayed a slightly mixed trend, though volatility subsided somewhat compared to previous levels.
Crude Oil Impact: Crude oil prices tumbled by approximately 13% to hover around the $95 mark, having previously touched $120. This provided a sense of relief to the market.
Indian Stock Market Snapshot
Indicator
Change
Sensex
+2600 points
Nifty
+750 points
Crude Oil
$95
Nifty VIX
-5%
Asian Markets
Positive trend
Sector-Wise Impact (If Ceasefire Holds)
Positive Sector Impact
Sector
Impact
Reason
Auto
Positive
Lower oil prices increase the demand for vehicles and reduce costs for companies.
Banking
Positive
Loan and investment activity increases when the market is stable.
Realty
Positive
People’s confidence grows, which leads to an improvement in property demand.
FMCG
Positive
The cost of manufacturing everyday goods is low, resulting in better margins.
Paints & Chemicals
Positive
Raw materials linked to crude oil work out cheaper.
Oil Marketing (OMCs)
Positive
Raw materials linked to crude oil work out cheaper.
Negative Sector Impact
Sector
Impact
Reason
Oil & Gas (Upstream)
Negative
Falling oil prices impact earnings.
Defence
Slight Negative
Demand slows down slightly as tension subsides.
Metals / Commodities
Neutral to Negative
The upside remains limited as global prices cool down.
Scenario Analysis: What Happens Next?
If the Iran-US Conflict Ends: If negotiations prove successful, the greatest benefit will be stability in oil prices. This would restore market confidence and could gradually lead to increased buying activity, particularly within domestic sectors.
If the Iran-US Conflict Continues Unresolved: If the situation remains in a stalemate, the market will lack a clear direction. Characterized by alternating rallies and declines, market movements would depend entirely on incoming news developments.
If the Iran-US Conflict Escalates: If tensions flare up once again, oil prices could surge rapidly. This would have a direct impact on inflation and market sentiment, potentially placing the market under significant pressure.
Investment Strategy During Iran-US War Uncertainty
It is advisable to focus on domestic sectors: During such times, sectors like banking, infrastructure, and consumption tend to remain relatively stable, as their growth is driven by domestic demand.
Caution is necessary regarding oil-sensitive sectors: Sectors such as aviation, paints, and chemicals are directly impacted by crude oil prices; consequently, they tend to exhibit higher volatility.
Adopting a staggered investment approach is prudent: Instead of deploying the entire capital at once, investing in a phased manner helps mitigate the impact of market fluctuations.
Defensive sectors should not be overlooked: Sectors like FMCG and pharmaceuticals tend to perform relatively well even in a weak market, thereby providing stability to the portfolio.
Maintaining portfolio diversification is essential: Investing across various sectors helps spread risk and minimizes the impact of a downturn in any single sector.
Conclusion
The market has received temporary relief from the ceasefire, but the situation is not yet entirely stable. The future direction will depend largely on oil prices and the progress of Iran-US negotiations. For investors, it would be prudent to adopt a balanced and cautious strategy for the time being. Download Pocketful for smart trading – zero brokerage, zero AMC, advanced F&O tools included.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
You might have borrowed money from a friend or family to buy something special. In the financial market traders do this often. They use a facility known as MTF to buy more shares than they can afford from their savings. But there is a catch in this, if the stock price falls too much the broker might even sell your shares without even asking you. This is what we call Liquidation in MTF.
In this blog, we will understand about What Is Liquidation and why it matters for your money. We will also learn about What Is Liquidation in MTF? And as you will go through the whole blog, you will know how to use this facility safely and how to keep your investment away from forced sales.
What Is Liquidation in MTF?
Liquidation is also known as forced sale and this takes place when your broker sees your shares going down and the recovery against the loan can be done. This is not something you choose to do, but it is something the broker does to protect their own money.
In MTF, liquidation is a safety switch because if the value of your shares falls too low, the broker starts to worry. They think, “What if the price falls so much that the client cannot pay back the loan?” To avoid this, they sell your shares and take their money back.
When you plan to sell things they are under your control and you decide the time & price at which you want to sell, this is also known as voluntary selling. But in liquidation, the brokers have the control and they can sell your shares without your permission if the price starts to fall. They sell your shares at the current prices even if you are facing losses.
Brokers follow the rules that are set by SEBI and act as a market regulator. And monitors the market making it less risky. If the stock price starts to fall the broker gets ready to sell your shares. As they make the lended amount is not completely lost.
When Does Liquidation Happen in MTF?
Liquidation can happen due to following reasons:
1. Margin Shortfall (The Core Reason)
One of the major reasons is “shortfall” in MTF; the broker requires the investors to have a minimum amount of their own money in the trade. This is called the maintenance margin. If the stock price falls and your own money in the trade becomes too low, you have a shortfall.
2.Falling Stock Prices
When the stock price falls, your “equity” in the trade goes down. To calculate equity the formula is Equity = Current Value of Shares – Loan Amount.
If your equity falls below the broker’s limit, they will ask for more money. If you don’t add it, they will liquidate.
3. Margin Call Not Fulfilled
When your account hits a risky level, the broker sends you a message. This is a “Margin Call.” It is like a warning where they ask you to add cash or more shares to create a buffer. If this is not met within 24 to 48 hours, the broker will sell your shares.
4. Breach of Maintenance Margin
Every broker has a “danger zone” level. If the market starts to crash and your account might start to hit the bottom level, the broker might not wait to liquidate. They can sell immediately to prevent further losses for both of you.
How the Liquidation Process Works
The process is usually automatic and most big brokers use computer systems to track every account in real time.
Step-by-Step Liquidation Process:-
System Check: The broker’s computer monitors the investors account everyday.
Alert: If the margin starts to fall you get a notification.
Wait Time: Investors get a small time to add money to their account.
Auto Sale: If the investor becomes unresponsive and does not act in time, the system places a sell order at the market price.
Settlement: The broker moves out the loan and interest form your account and any remaining money is left in the account.
The broker does not always sell everything, they only sell a few shares to bring your margin back to a safe level. This is called partial liquidation. But if the risk is too high, they might sell all your MTF stocks. This is full liquidation.
Brokers use a rule called “FIFO,” which means First-In, First-Out. If you bought some shares of the same company in your regular portfolio and some in MTF, the broker will sell the oldest shares first. This can be confusing for tax purposes, so you must be careful.
After the sale, your loan is paid off. But you might have lost a lot of your capital. If the sale proceeds are not enough to cover the loan, your account will show a negative balance. You will then have to pay the remaining money to the broker from your own pocket.
Example of Liquidation in MTF
Let’s use some numbers to see how this works in real life. Imagine you buy shares worth Rs.1,00,000 where you pay Rs.25,000 and broker loan amounts to Rs.75,000. If the stock price rises by 10%. Your shares are now worth Rs.1,10,000. Here you need to pay back the loan of Rs.75,000 along with interest. From your money (Rs.35,000) the interest is subtracted. You made a 40% return on your investment of Rs.25,000.
But what if the stock price falls by 15%. Your shares are now worth Rs.85,000. Your equity is now Rs.85,000 – Rs.75,000 = Rs.10,000. Your original Rs.25,000 has shrunk to Rs.10,000. If the broker requires a 20% maintenance margin (which is Rs.17,000 on a Rs.85,000 value), you are now Rs.7,000 short. The broker will ask you for Rs.7,000. If you don’t pay, they sell your shares at Rs.85,000.
In MTF, leverage works like a double edged sword because a 5% drop in stock price leads to a 20% loss on your money (with 4x leverage) and a 25% drop can wipe out 100% of your investment.
Using MTF is a big responsibility. Here are some risks you should know:
Loss of Capital: Investors can lose money much faster compared to the regular trading of stocks and shares.
Forced Selling: You would have to sell your shares even if the market is at its lowest point as the broker will make sure maximum borrowed money is safe.
Interest & Loss Impact: If you lose money due to falling stock that doesn’t mean you don’t have to pay the interest. As interest needs to be paid on the borrowed amount.
Market Volatility Risk: Sometimes stock price crashes can trigger the liquidation process even before you get time to react.
How to Avoid Liquidation in MTF
Forced liquidation can be avoided if you follow the following steps:
Maintain Adequate Margin: You should always try to keep the amount above the minimum requirements. As this extra amount can act as a buffer making you safe from liquidation.
Use Stop Loss: Investors shall always set a price where the shares get automatically sold if the stock price starts to fall below a certain point.
Avoid Over-Leverage: You have to use the limit to your manageable level. You should not use the maximum limit just because it is available. Don’t use the maximum limit just because it is available. Use only as much as you can manage.
Monitor Positions Regularly: You should check your account on a daily basis, to see the marginal levels, just don’t buy and forget. Don’t “buy and forget.” Check your account every day to see your margin levels.
Add Funds on Margin Call: Do not wait for the market to bounce back, if you get an alert so you have to act quickly in that situation. If you get an alert, act quickly. Don’t wait for the market to bounce back.
Margin Call vs. Liquidation
Think of a Margin Call as a yellow traffic light. It is a warning to slow down and check your account. You can still save your trade by adding more money.
Liquidation is like a red traffic light. The time for warning is over. The broker has stepped in to stop the car and sell your shares.
MTF is a great tool for Indian investors who want to grow their wealth, but it must be used with care. Liquidation is not your enemy, it is a risk management rule that keeps the market safe. By staying alert, using stop losses, and keeping a cash buffer, you can avoid the pain of forced sales. Always remember that the stock market involves risk, and using leverage increases that risk. Trade smart and keep learning.
For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
Yes, but only before the liquidation starts. You must add cash or more collateral to your account as soon as you get a margin call. Once the liquidation process begins, you cannot stop it.
Does liquidation affect my credit score?
No, here the credit score is not affected as it is not linked with the trading account directly, but not paying and owning broker’s money can lead to legal consequences.
Why did the broker sell my shares even if the market was about to go up?
The broker’s system works on the basis of current risk and does not look for potential future growth, if the margin falls below the limit, the system is programmed to sell to protect the loan.
What is a “haircut” in MTF?
A haircut is a safety percentage. For example, if you pledge shares worth Rs.1,00,000 and the haircut is 20%, the broker will only give you a Rs.80,000 margin benefit. This covers the risk of the stock price falling.
How much interest do I pay in MTF?
Interest is charged only on the money you borrowed. If you buy shares worth Rs.1 lakh and use Rs.25,000 of your own money, you pay interest on Rs.75,000. Most brokers charge between Rs.40 to Rs.60 per lakh per day.
Silver has always held a unique place in the financial world. It is an industrial commodity used in electronics, solar panels, and electric vehicles. This dual nature makes silver one of the most interesting (and volatile) assets to trade.
It’s not just about whether silver goes up or down; it’s also about the lot size, margin requirement, and how much risk you’re actually taking on with each trade.
And in India, one of the most popular ways to trade silver is through the Multi-Commodity Exchange (MCX).
In today’s blog, we will dive deep into the intricacies of Silver Trading on MCX.
Silver As a Metal
The first question that would pop into someone’s mind is where it comes from: Most silver is actually a “bonus” find, and it is usually mined as a by-product while looking for other metals like lead, copper, or zinc.
Additionally, a decent chunk of the supply also comes from recycled scrap and old coins.
Silver has been used for thousands of years to make jewellery, ornaments, and even monetary systems. Its value as a precious metal has long been considered second only to gold.
Silver alloys are used in many types of high-quality musical wind instruments. Silver acts as a catalyst in oxidation reactions.
A Look at the Numbers (From 2019 to 2024)
1. Global Supply is Steady
The total amount of silver available worldwide stays pretty consistent, hovering around 1,000 million ounces a year. Mine production is the biggest source, while recycling adds about 180-190 million ounces to the pile annually.
2. Demand is Shifting
Looking at the charts, Industrial demand is the leader and has been growing steadily since 2020. While things like photography use very little silver these days, “Net Physical Investment” (people buying silver bars and coins) saw a huge spike in 2022.
3. The India Factor
India is a major player in the silver market, but with significant volatility.
In 2022, imports skyrocketed to over 303 million ounces.
In 2024, they are back on the rise again (estimated at 247.4 million ounces).
The features mentioned below define how silver is priced, traded, settled, and delivered on the exchange.
1. Multiple Contract Variants
This flexibility allows both retail and institutional participants to trade efficiently.
30 Kg Silver
Standard contract for high-volume traders
5 Kg Silver Mini
Mid-sized traders
1 kg Silver Micro
Ideal for beginners
2. Trading Unit & Price Quotation
Prices are quoted in ₹ per kilogram
Standard contract size = 30 kg
For Example, if the silver is ₹75,000/kg, the total contract value becomes ₹22.5 lakh.
3. Trading Sessions & Timings
Trading session
Monday to Friday: 9:00 a.m. to 11:30 p.m. / 11:55 p.m.
Contract Months
Mar, May, July, Sept & Dec. for Silver & Feb, April, June, Aug & Nov for silver mini and micro.
Last Trading Day
5th of the Contract month for silver & last day of the contract expiry month for silver mini and silver micro.
Maximum Order Size
600 kg
4. Daily Price Limits
MCX has a system to control extreme price movements in silver so that markets don’t become too volatile too quickly.
Let us break that down in simple language
First, the price is allowed to move up or down by 4% in a day. This is called the base price limit.
If the price crosses this 4% limit, trading does not stop. Instead, the limit is automatically increased to 6%, and trading continues normally
If the price moves beyond 6%, then trading is paused for 15 minutes, and this break is called a cooling-off period.
After this short pause, trading resumes and the price limit is extended further to 9%.
Now, if global markets (like international silver prices) are moving even more aggressively, MCX can increase the limit beyond 9%, in steps of 3% at a time.
5. Margin & Leverage
a) Initial Margin
This is the minimum amount you must deposit to take a trade.
MCX says you need:
At least 11.5% of the contract value, OR
A higher amount if required by the SPAN system
Whichever is higher will apply.
But, what is SPAN Margin
SPAN (Standard Portfolio Analysis of Risk) is a system used by exchanges to calculate the worst possible loss your trade could face in a day.
b). Extreme Loss Margin
This is a minimum 1%, and it is an extra safety buffer added on top of the initial margin.
It helps a trader to protect themselves against high volatility and unexpected falls.
c) Additional and/or special margin
If the market becomes too volatile, MCX can temporarily increase margins.
This extra margin can be applied to both buy and sell positions or only on one side, depending on the market conditions.
6. Delivery Mechanism
Contracts are deliverable, not just cash-settled. If you hold a silver contract till expiry on MCX, you may have to go through the delivery process.
MCX allows delivery in different sizes:
30 kg (standard contract)
5 kg (in the form of five 1 kg bars)
1 kg (smallest unit)
As the contract approaches expiry, margin requirements increase.
The margin during this period will be:
Either 3% + risk based on the last 5 days’ price volatility, OR
25% of the contract value
Whichever is higher will apply.
Delivery does not happen on just one day. It is staggered to avoid chaos, and happens during the last 5 trading days (including expiry day).
Delivery centres are in Ahmedabad, Mumbai, and Delhi.
Quality Specifications are as follows;
Purity: 999 (99.9% pure silver)
Comes in serially numbered bars
Supplied by LBMA-approved refiners
On the expiry day, MCX calculates a final price called the Due Date Rate by taking the average price of the last 3 days.
While trading silver, instead of chasing random tips, it is better to follow a few strategies that work in real market conditions.
Let’s break it down.
1. Trend Analysis
Instead of predicting the market, you simply follow the existing trend.
How?
Check global silver prices (especially COMEX)
Observe whether the market is trending up or down
Enter on small pullbacks instead of chasing price
If the trend is upward, look for buying opportunities and vice versa.
2. Intraday Trading
Silver is known for its volatility, which makes it attractive for intraday trading.Trade near support and resistance levels. Look for breakouts or reversals. Always use a strict stop-loss
3. Trade with Global Cues
Unlike stocks, silver is heavily influenced by global markets. Unlike stocks, silver is heavily influenced by global markets. So if you are only looking at MCX charts and ignoring global factors, you are missing half the picture.
Important things to track
US Dollar movement
Global silver prices
Inflation data and interest rate decisions
Major geopolitical events
4. Gold-Silver Ratio Strategy
This ratio measures how many ounces of silver are required to buy one ounce of gold, calculated by dividing the gold price by the silver price.
A high ratio (>80-90) suggests silver is undervalued compared to gold.
A low ratio (<50-60) suggests silver is overvalued as compared to gold.
Silver trading on MCX is a unique blend of opportunity and risk. On one hand, it offers strong price movements, global exposure, and the benefit of leverage. On the other hand, that same volatility can work against you if you are not careful.
The key is not to treat silver trading like an easy way to make money. Instead, approach it with a proper understanding of how it works, right from lot sizes and margins to global price movements and delivery rules. Stay ahead with real-time market insights & latest news. Download Pocketful – Zero brokerage on delivery, no AMC and a seamless, easy-to-use platform.
Frequently Asked Questions (FAQs)
How much margin is required to trade silver on MCX?
Generally, you need around 30-40% of the contract value as margin, depending on market conditions and volatility.
Can beginners trade silver on MCX?
Yes, beginners can start with Silver Micro (1 kg) contracts to reduce risk.
Do I get physical silver when I trade on MCX?
Only if you hold your position till expiry. Otherwise, most traders square off their positions before expiry and do not take delivery.
Is silver trading risky?
Yes, silver is highly volatile and involves leverage, which makes it both high-risk and high-reward.
What happens if I do not exit before expiry?
You may have to give or take physical delivery of silver, as MCX contracts are deliverable.
Indian Premier League, or IPL 2026, is not just a cricket tournament; it is also a significant economic event. The league draws millions of viewers worldwide, the IPL has transformed into a significant source of income, fueled by commercials, brand partnerships, ticket sales, and digital broadcasts. It extends beyond just the sport now. Its influence spreads to sectors like fast-moving consumer goods, hospitality, and entertainment too.
In this blog, we will discuss the sectors and companies that can be positively impacted due to IPL 2026.
Top 10 IPL Related Stocks List 2026 – Market Information
S.NO.
Company
Current Market Price (₹)
Market Capitalization (in ₹ crores)
1 Month Return
6 Month Return
1
Reliance Industries Limited
1,292
17,65,649
-5.90%
-5.95%
2
Zomato Limited
288
2,24,129
1.05%
31.90%
3
Interglobe Aviation (Indigo)
4,208
1,66,607
0.16%
-25.96%
4
Varun Beverages Limited
396
1,35,554
-10.74%
-9.53%
5
Indian Hotels Limited
587
84,773
-4.11%
-19.06%
6
Swiggy
266
75,053
-9.77%
-36.61%
7
United Breweries Limited
1,481
39,158
-14.05%
-17.39%
8
ITC Hotel Limited
145
31,213
-11.80%
-32.50%
9
CEAT Limited
3,370
13,537
0.40%
-3.53%
10
Nazara Technologies
231
8,589
-3.33%
-17.49%
(Data as of 04 April 2026)
Top 10 stocks to watch out for during IPL 2026, along with their overviews:
1. Reliance Industries
Reliance was founded in 1966 by Mr. Dhirubhai Ambani. Later in 1980, it began expanding its operations in the petrochemical sector. Following his death, Dhirubhai Ambani’s two sons, Anil and Mukesh Ambani, divided the company. Under Mukesh Ambani’s leadership, the business expanded into several sectors, including communications and retail, and achieved new heights.
IPL Impact: RIL has a strong presence in IPL broadcasting and digital streaming through its subsidiaries, such as Viacom18, and platforms, JioTV and JioHotstar and is positioned to profit from the higher viewership during the IPL season.
2. Eternal (Zomato)
Eternal (Zomato) is an Indian restaurant aggregator and provides food delivery services from affiliated eateries in more than 1,000 Indian towns and cities. Initially called “Foodiebay,” Zomato was established in 2008 by Deepinder Goyal and Pankaj Chaddah.
IPL Impact: As most people watch matches at home or in groups, the IPL increases demand for food delivery services, thereby increasing revenue.
3. Interglobe Aviation (Indigo)
InterGlobe Aviation, which owns IndiGo, is India’s leading carrier based on its share of the market. Established in 2006, the firm runs an extensive network both within India and internationally, placing a major emphasis on keeping costs low and ensuring punctuality.
Effect of the IPL: The Indian Premier League period increase greater need for travel originating from the participating teams, their associated personnel, backers, and supporters across all tournament venues. This results in greater passenger volumes and better seat occupancy percentages for carriers such as IndiGo.
4. Varun Beverages
The chairman of RJ Corp., Ravi Jaipuria, founded Varun Beverages Limited in 1995. The business is named after Ravi Jaipuria’s child. The business produces and sells beverage bottles. The company initially established PepsiCo product packaging facilities in India. The company’s main operations involve the production and distribution of bottles for PepsiCo’s product line.
IPL Impact: Varun Beverages is a prominent manufacturer, bottler and distributor of PepsiCo products in India, producing well-known beverages like 7Up, Mountain Dew, and Pepsi. Soft drink sales may increase because the IPL takes place during the peak summer months.
5. Indian Hotels
The company was established in 1903 by Jamsetji Tata, and it initially operated a hotel in Mumbai called The Taj Mahal Palace. The company bought the Taj Lake Palace in Udaipur and opened additional hotels across the country to expand its holdings. In 1980, the company introduced several innovative brands known by the name of Vivanta and Ginger in response to changing consumer demands and also bought hotels abroad.
IPL Impact:Indian Hotels will have a few of its hotels featured as team hotels for some IPL teams, which will have a positive impact on the company because of higher rates of hotel occupancy.
6. Swiggy
Swiggy stands as a India’s leading on-demand convenience platforms, established in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Based in Bengaluru, Swiggy services over 500 cities, providing meal delivery, rapid grocery shopping via Instamart, and restaurant table options. The service collaborates with hundreds of thousands of eateries and delivery personnel, prioritizing swift movement and ease for customers. Supported by international funders, Swiggy keeps broadening its offerings using tech-based approaches and varied services throughout metropolitan areas.
IPL Impact: When the IPL season is underway, a rise in watching matches at home, late scheduled games, and social get-togethers substantially increases requests for meals and groceries. This results in more frequent ordering, bigger typical transaction amounts, and better user interaction with the platform, contributing to healthy income expansion.
7. United Breweries
The late Mr Vittal Mallya bought the business in 1947. It has continuously expanded ever since. With more than 60% of the beer market, United Breweries is considered the biggest producer in India. The company’s headquarters is in Bangalore. When the company was founded in 1915, it had five breweries in southern India.
IPL Impact: Increased alcohol consumption during IPL matches benefits companies like United Breweries. Nightlife in host cities sees greater interest in parties, pubs, and sports bars, thereby increasing the sale of alcohol and the revenues of alcohol companies.
8. ITC Hotels
One of the biggest hotel chains globally, ITC Hotels has over 100 hotels featuring luxurious accommodations. Some of the prominent ITC Hotel brands are Mementos, ITC Hotels, Welcomhotel, Fortune Hotels, etc.
IPL Impact: ITC Hotels will be in focus during the IPL Tournament because premium room bookings will be driven by IPL teams, officials, tourists and corporate guests staying at their lavish hotels.
Moreover, increased IPL snack consumption benefits ITC’s FMCG division. An increase in revenue from FMCG and hospitality sales during the IPL season is also expected.
9. Ceat Tyres
Previously known as Cavi Electtrici e Affini Torino (Electrical Cables and Allied Products of Turin), CEAT Limited is a well-known and prominent international tyre manufacturer with its headquarters located in Mumbai, India. They produce tyres for a variety of vehicles, including cars, trucks, buses, and motorcycles.
IPL Impact: Strategic timeouts featuring CEAT’s brand ads, an official IPL partner, can increase brand recall and possibly increase sales.
10. Nazara Technologies
Nazara Technologies stands as a prominent gaming and sports media firm originating in India, boasting a significant footprint in mobile gaming, esports, and interactive forms of entertainment. Established by Nitish Mittersain, the enterprise conducts business internationally spanning India, Africa, and North America via well-regarded gaming platforms and esports endeavors.
Effect of the IPL: The Indian Premier League season elevates user involvement across platforms dedicated to fantasy sports, cricket-themed games, and esports, resulting in greater user participation, a rise in purchases made within applications, and enhanced advertising income for Nazara.
Tata Group is one of India’s oldest and largest conglomerates, founded in 1868 by Jamsetji Tata. It operates across diverse sectors, including steel, automobiles, IT, hospitality, and more. Known for its ethical values and philanthropy, Tata Group includes companies like Tata Steel, Tata Motors, TCS, and Tata Power, with a global footprint across 100+ countries.
IPL Link: Tata Group is the title sponsor of IPL 2025 and has paid a total sum of ₹2,500 crores for retaining title sponsorship from 2024 to 2028.
2. Angel One
Angel One (formerly Angel Broking) is a leading Indian stockbroking and wealth management firm. Established in 1996, it offers services like equity trading, commodities, mutual funds, and portfolio management. With a strong digital platform and low brokerage fees, Angel One caters to retail investors and traders, making investing accessible across Tier 2 and Tier 3 cities.
IPL Link: Angel One is the associate sponsor of IPL 2026.
3. RuPay
RuPay is India’s domestic card payment network launched by the National Payments Corporation of India (NPCI). Designed to promote financial inclusion, RuPay offers debit, credit, and prepaid cards. Accepted widely across ATMs, POS terminals, and online platforms, RuPay has become a key player in India’s digital payments ecosystem, challenging global networks like Visa and Mastercard.
IPL Link: In 2025, RuPay will serve as the associate sponsor of IPL.
4. Wonder Cement
Wonder Cement is a part of the RK Group and one of India’s fastest-growing cement companies. Established in 2010, it manufactures premium-quality Portland Pozzolana and Ordinary Portland Cement. With plants in Rajasthan, Maharashtra, and Madhya Pradesh, Wonder Cement focuses on innovation, sustainability, and customer satisfaction in the construction and infrastructure space.
IPL Link: Wonder Cement agreed to pay a total of ₹50 crores for a period of 4 years to become the official umpire partner in IPL.
5. Amul
Amul is one of India’s most iconic dairy brands, managed by the Gujarat Cooperative Milk Marketing Federation. Established in 1946, Amul offers a wide range of dairy products including milk, butter, cheese, and ice cream, and is known for its strong rural network and brand recall across India.
IPL Link: Amul actively leverages IPL through high-impact advertising campaigns and topical marketing, boosting brand visibility and driving higher consumption of dairy products during the cricket season.
6. CEAT
CEAT Ltd., part of the RPG Group, is one of India’s leading tyre manufacturers. Founded in 1958, CEAT produces tyres for two-wheelers, cars, trucks, and buses and exports to over 100 countries. Known for its durability and performance, CEAT invests in innovation and sustainability and is a major player in India’s growing automotive sector.
IPL Link: Strategic Timeout marks an important event in the game of cricket and CEAT paid a total of ₹240 crores in 2024 for a period of 5 years to have its name associated with the key event.
7. Star Sports
Star Sports is a leading Indian sports broadcasting network formerly owned by Disney Star. Disney and Reliance recently formed a joint venture named JioStar, which owns Star Sports that holds broadcasting rights to major tournaments like IPL, ICC Cricket, Pro Kabaddi, and international football leagues. Offering content in multiple Indian languages, Star Sports revolutionized sports viewership in India with in-depth coverage, expert analysis, and high-definition broadcasts.
IPL Link: Star Sports won the IPL TV rights for 5 years after bidding a total sum of ₹23,575 crores.
8. JioHotstar
JioStar is a joint venture between Reliance and Disney. JioStar owns JioHotstar, which offers movies, web series, TV shows, and live sports, including IPL and international cricket. With free access to major events, JioHotstar has become a top OTT player, challenging platforms like Netflix, Amazon Prime, and Disney+.
IPL Link: In 2022, Viacom18, a subsidiary of Reliance Industries, bid ₹23,758 crores to win the digital rights of IPL for a period of 5 years. In 2023, Disney explored a joint venture or sale of its India assets with Reliance Industries. Ultimately, a joint venture named JioStar was formed with Reliance along with its subsidiary, Viacom 18, which owns approximately 63% of JioStar.
IPL can influence the profitability of a company and impact its stock performance in the following ways:
Brand association with the IPL can greatly impact the company’s stock performance. The game has a vast audience, reaching millions on TV and online, providing exceptional brand visibility.
Companies that sponsor leagues often see improved brand recognition, resulting in higher sales and revenue.
This positive outlook can increase stock valuation, especially for companies and consumer-focused industries such as FMCG, automotive, beverages, and e-commerce.
Past trends suggest that companies that use IPL for marketing campaigns or product launches often see a temporary rise in their stock prices due to increased brand visibility.
Sectors Expected to Benefit from IPL 2026
Let’s look at the sectors expected to benefit from IPL 2026:
Media & Broadcasting
The IPL’s large audience brings significant advertising revenue for TV broadcasters and digital streaming platforms.
These platforms gain more subscribers and viewership, especially among younger audiences during the IPL season, which increases the revenue from subscriptions and digital advertisements.
The rivalry between TV and digital platforms fosters innovation in broadcasting and streaming technology.
Consumer Goods & Beverages
The demand for soft drinks, snacks, and packaged foods rises during IPL matches due to social gatherings and home viewing parties.
Companies that manufacture these products and other convenience foods see a substantial increase in their sales.
This increased demand can boost production and distribution, benefiting the entire supply chain.
E-commerce & Online Gaming
Fantasy sports platforms, experience a surge in user engagement during the IPL season.
E-commerce platforms use IPL’s popularity for selling exclusive merchandise, team jerseys, and special promotions.
Online food delivery services see a spike in orders during these times.
The usage of mobile applications for shopping and entertainment has also witnessed a substantial rise, according to past trends.
Hospitality & Tourism
Hotels, restaurants, and travel companies are all gaining from IPL tourism. When these cities host IPL matches, there’s a sudden spike in tourism, which means the related companies will get a lot more customers.
Travel companies offering IPL match packages often experience higher demand.
The increase in tourist arrivals benefits the local economy and boosts revenue for the hospitality sector.
Advertising & Marketing
With companies investing in IPL sponsorships for maximum brand visibility, the championship offers a unique opportunity for brands to connect with a wide and diverse audience.
Companies across various sectors invest heavily in IPL sponsorships and advertising campaigns which leads to increased revenues.
How to Identify the Stocks Expected to Benefit from IPL?
Investors can identify the stocks that can be positively impacted by IPL in the following ways:
The IPL season offers a chance for investors to profit from the economic boost it brings. Investors can improve their portfolios by identifying companies connected to the IPL ecosystem.
Increasing viewership boosts consumer spending, leading to revenue growth for related businesses.
Companies that invest in sponsorship advertising and product promotions frequently experience a boost in brand visibility and sales.
Media entertainment and consumer goods sectors usually see improved stock performance during the IPL seasons.
Risks & Challenges in IPL-Driven Stock Investments
An individual should consider the risks associated with investing in stocks whose performance is directly or indirectly linked with IPL. Some of the most common risks are listed below:
The IPL significantly impacts the stock market, often causing short-term volatility and speculative trading. Companies involved as lead sponsors or associate partners often attract more investors because of greater brand visibility and revenue potential.
This increased excitement can cause a surge in stock prices both before and during the tournament. Nonetheless, market reactions are often unpredictable, resulting in increased volatility.
The rise in popularity of online betting platforms among younger audiences might also encourage speculative trading behaviour in the Indian financial markets.
Some stocks may rise temporarily, while others could correct after the tournament ends and excitement fades. It is suggested for investors to approach IPL-related stocks with caution.
Below are some of the most common mistakes an investor should avoid when investing in IPL-related stocks:
Excessive Speculation
One of the most common mistakes is making trades based on hype or media buzz. IPL-related stocks may see short-term price increases, but without strong fundamentals, these gains are unlikely to last.
Investors should rely on financial analysis instead of making impulsive decisions.
Overlooking Diversification
Ignoring diversification by concentrating investments in one sector, like media, FMCG, or gaming, increases the sector-specific risks.
Diversifying your portfolio across different industries helps reduce the risk of losses.
Well-Defined Exit Strategy
Chasing quick profits without a proper exit strategy can result in extreme losses.
Stocks may rise for some time during the IPL, but they could drop after the season ends.
Fixing the price targets and tracking market trends is essential.
Falling for Market Hype
The stock tips and recommendations easily available during the IPL season can be misleading.
Do not simply go along with the crowd; instead, take the time to do your own research.
Conclusion
Investing in IPL-related stocks can be profitable, but it needs careful planning and research. The IPL season boosts consumer spending, ad revenues, and brand recognition, creating opportunities for both short-term and long-term investments. Investing driven by speculation or emotional reactions can result in financial losses. Focus on conducting thorough research and data analysis to discover companies with growth possibilities. With the help of data-backed risk assessment, investors can set stop loss levels and diversify their portfolios to reduce losses. It is advised to consult a financial advisor before investing.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
Can investing in IPL-related stocks lead to quick profits?
While short-term gains are possible, it is important to research a company’s fundamentals and avoid emotional investing.
Is it risky to invest in IPL-related stocks?
Yes, market volatility can be high during IPL, which increases the risk of losses.
How can I track IPL-related stock trends?
Follow financial news, technical indicators and market trends to stay updated.
What are the official dates for IPL 2026?
Official dates for IPL 2026 are from 28 March 2026 to 24 May 2026.
What is the best investment strategy for IPL stocks?
Consider a balanced approach with a mix of short-term trades in IPL-related stocks along with long-term investments in fundamentally strong companies. However, it is important to consult a financial advisor before investing.
In the dynamic world of investment, traders are looking for different approaches to earn profit in the short-term. One of such methods is scalping trading. There are two modes of scalping trades, which are popular among traders: Manual Scalping and AI Scalping.
In today’s blog post, we will give you an overview of manual scalping and AI scalping, along with their key differences.
What is Manual Scalping Trading?
Manual scalping trading is a short-term trading strategy used by traders in which they buy and sell different assets, such as stocks, bonds, Options etc., very quickly to earn profit from price movement. The traders continuously monitor the market and movement of stocks and execute trades by themselves.
Features of Manual Scalping Trading
The key features of manual scalping trading are as follows:
Large Number of Trades: In manual scalping, the trader executes a large number of trades during a single trading session.
Small Profits: The traders in manual scalping primarily focus on small price movements and earn limited profits.
Manual Execution: The orders in manual scalping buy and sell orders are executed by the trader in real time.
Liquid Stocks: Manual scalping traders focus on only those stocks which are highly liquid in nature so that easy entry and exit can be made.
What is AI Scalping Trading?
An AI scalping trading is an automated trading strategy used by traders in which the artificial intelligence analyses the market data and automatically executes the trades to capture the small price movement and earn profit. The trades are executed by the software in milliseconds.
Features of AI Scalping Trading
The key features of AI scalping trading are as follows:
Automated Execution: The trades in AI scalping are executed by the AI system automatically. It reduces human intervention.
High Speed Trades: In AI scalping trading, the trades are executed within milliseconds by the system to take advantage of small price movements.
Large Data Sets: The system analyses the large set of market data along with historical data to predict the price movement of securities.
No Emotions: As in AI scalping trading, there is no involvement of human traders. Hence, the risk of greed and fear, along with the emotions are removed.
Difference Between Manual Scalping and AI Scalping Trading
The key difference between manual scalping and AI scalping trading is as follows:
Particulars
Manual Scalping
AI Scalping
Decision
In manual scalping, decisions are taken by traders manually on the basis of charts, indicators, etc.
In AI scalping trading, all the decisions are made by the systems.
Time in Execution
The time taken to execute the trade in manual scalping is slower, as the trader first needs to analyse and then place an order manually.
The speed of trade in AI scalping is very fast. AI can analyse the data in milliseconds and execute trades instantly.
Emotions
Human emotions such as fear, greed, etc., are involved in manual scalping
Emotional decisions are not involved in AI scalping.
Analysis of Data
Traders can analyse only a limited amount of data.
In AI, scalping trading systems can analyse a large amount of data.
Monitoring
Regular monitoring are required in manual scalping.
Once the AI scalping trading is set up, minimal monitoring is required for it.
Cost
Manual scalping requires minimal cost.
AI softwares are expensive and requires a large subscription.
What to Choose Between Manual and AI Scalping Trading
The decision between Manual Scalping Trading and AI Scalping Trading primarily depends on your trading style, experience and the amount of time you may spend in the market. Manual scalping is the best choice for traders who prefer to watch charts, analyse price changes, and make decisions independently. It allows you to have complete control over all trades, yet it involves being attentive and responsive. Alternatively, AI scalping trading is based on automated systems and algorithms that process market information and make a trade in a matter of seconds, thus being appropriate to traders who value speed, automation, and reduced emotional engagement in trading. Manual scalping might be a superior option if you prefer chart analysis, whereas AI scalping can be a suitable option if you prefer a more technology-driven and automated trading experience.
On a concluding note, both AI and manual scalping trading objective is to earn profit from small price movements. The key difference is only in the mode of execution of trade. In manual scalping trading, the trades are executed by the trader themselves, whereas in AI scalping trading, all the trades are executed only by the system. And, the choice among them solely depends on the trading style of the investor. However, it is advisable to consult your investment advisor before making any investment, whether it is through manual scalping or AI scalping. Your all-in-one trading app Pocketful offers market insights, learning content, free delivery trades, Scalping, advanced F&O tools, and a smooth experience.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
In the stock market there are multiple trends prevailing from time. Investors frequently look for multiple ways to increase their purchasing power. Many retail investors are looking for ways to increase their buying power to get better returns. This is exactly where the Margin Trading Facility (MTF) comes into the picture.
But a very common question pops up in the minds of beginners. People often ask, Is MTF safe? They want to understand the real MTF risks in India before putting their hard-earned money on the line. Another way people ask this is, Is margin trading safe in India?
Today in this blog we will talk about MTF and how safe it is for the investors to use this facility. We are going to answer all these questions today in simple words. We will also talk about the MTF eligible stocks list and how the MTF interest rate works. Our goal is to spread awareness so you can understand the risks properly.
What is a Margin Trading Facility (MTF)?
MTF is a service provided by your stockbroker. In this the broker allows you to buy stocks by paying only a small portion of the total cost and the broker pays the remaining amount as a short-term loan to the investor.
Think of it like buying a house on a mortgage where you pay a down payment, and the bank funds the rest. In the stock market, brokers play the role of the lender.
Let us look at a basic example of an MTF trade. Suppose you want to buy shares of a company worth Rs.1,00,000. You only have Rs.50,000 in your trading account. With MTF, you can bring your Rs.50,000, and the broker will fund the other Rs.50,000 so you can buy the shares of the full amount.
When you buy stocks using borrowed funds, the process is simple and almost all the trading apps have this option. You just need to select the MTF option while placing your buy order. However, there are strict rules behind this facility.
The Securities and Exchange Board of India (SEBI) is the regulatory authority that monitors the whole process. They decide the margin requirements and the leverage you can get. For example, if a stock requires a 25 percent margin, you pay 25 percent and the broker funds the remaining 75 percent.
As the broker lends money to the investor this comes with added charges or interest is charged on the money lent. This interest is charged on a daily basis on the borrowed amount. You keep paying this interest until you sell the shares or pay back the loan to the broker.
Key Features of MTF
Before borrowing or using this facility one should know its main features.
Leverage facility: In this the investor gets extra purchasing power. You can buy more shares than your current cash balance allows.
Interest cost: Brokers charge an annual or daily interest rate on the funded amount. Platforms like Pocketful offer very low rates starting from 5.99 percent per year for amounts up to Rs.1,00,000.
Approved stock list for MTF: Margin facility cannot be used to buy any stock, there is a specific list of approved stocks, high quality trusted stocks provided by the broker in which the MTF facility is allowed.
Pledging of shares as collateral: The shares bought by the investor are kept by the broker as security deposit. Here you have to pledge the bought shares via the OTP process.
Mark-to-Market (MTM) settlement: The broker checks the value of shares bought everyday and if the share price starts to fall, the value of the security deposit also falls simultaneously.
Is MTF Safe? The Reality
MTF is not inherently unsafe, but it is definitely risky. It is a legally approved product regulated by SEBI, so the system itself is very secure.
However, the safety of your money depends entirely on market conditions and your own purchasing behavior. When the market is going up, MTF looks like a magic tool as here you can buy more and boost your profits. But when the market starts to crash, it can wipe out your capital very fast.
This means MTF is suitable for experienced and informed investors who know how to manage risks. It is highly unsuitable for beginners who panic easily when the prices start to drop.
Using borrowed money to trade stocks brings some serious risks. You need to be fully aware of these before taking a position.
Margin risk: When you use leverage, your losses get magnified, because if stock falls by 10 percent, your actual loss on your own invested capital could be 40 percent or more.
Margin call risk: If the stock price falls heavily, your broker will ask you to bring more cash to maintain the margin. If you fail to add funds, the broker will forcefully sell your shares at a loss.
Interest cost risk: The interest rate keeps on accumulating as it is mostly charged on a daily basis so till the time you keep the borrowed money this additional cost will affect your overall profits.
Liquidity risk: If the stock starts to fall and hits a lower circuit it means there are no buyers in the market which can result in you getting stuck in this situation and you daily interest rate to grow resulting in losses.
Overleveraging Risk: Traders do not plan and sometimes get greedy & overwhelmed by the upward moving share price. This results in too much borrowing which is dangerous as everything can overturn due to small market corrections.
Regulatory and policy risks: SEBI can change margin rules anytime to protect the market. For instance, in October 2024, SEBI increased the margin required for certain stocks. This can force you to bring in more cash suddenly.
Hidden Costs in MTF
When you use MTF, the interest rate is not the only cost. There are several other charges you must keep in mind.
Cost Type
Details
Impact on your trade
Brokerage Charges
A flat fee or percentage per order.
Increase your buying and selling cost.
Interest rate
Charged daily in the borrowed money.
Reduces your final profit
Penalties on margin shortfall
SEBI levies fines ranging from 0.5% to 5% if you fall short of margin.
A direct hit to your training balance.
Pledge and Unpledge charges
A small fee to lock and unlock your shares.
Charged every time you take or exit a position.
Other Charges
GST of 18% on fee, plus DP charges when you sell.
Unavoidable taxes and fixed fees.
Who Should Avoid MTF?
MTF is an advanced tool and is not meant for everyone. You should definitely not opt for this facility if you are new or know less about its functioning.
First-time investors should avoid MTF completely. If you are new to the market, you should stick to learning with your own money first. The stress of borrowed money can ruin your learning experience.
Low-risk appetite individuals should also avoid it. If seeing a red portfolio makes you anxious, leverage will only multiply that anxiety.
Finally, people without proper market knowledge should never use MTF. If you do not know how to read charts or understand company fundamentals, borrowing money to trade is a bad idea.
Advantages of MTF facility
You get higher buying power with a small capital amount.
It allows you to grab short-term trading opportunities when you are low on cash.
You can get a much higher return on investment if the stock moves in your favor.
It is a fully regulated facility under SEBI, ensuring broker transparency.
It amplifies your losses just as much as it amplifies your gains.
There is a daily interest charged on the borrowed amount which can result in reducing your net profit over time.
There is a constant risk of margin call and forced selling by the broker, during market downturns.
Risk Management Tips for MTF Users
If you want to use the MTF facility you need to follow strict rules to protect your investments.
Use stop-loss orders: Investors shall always set a price limit so that the shares can automatically sell if something wrong goes in the trade. By putting a pricing limit you can minimize your losses.
Avoid overleveraging: In MTF you can borrow 4 times the money that you have but this does not mean you should always use this facility. One should always keep a cash buffer if anything goes wrong.
Monitor positions daily: A constant check of your portfolio and margin limits is required on a daily basis so that you can avoid sudden market changes.
Understand interest implications: MTF trades shall not be held for a long term as this is specifically to gain during the short term or else the interest will accumulate and will eventually hurt you.
Diversify investments: One should never put all their investments in one stock as one mistake can lead to big losses. Diversification of stocks can minimize your risk factor.
SEBI Guidelines on MTF
SEBI is the regulatory authority that keeps the rules updated and also monitors the entire market making it a safe space for the investor. Here are some key guidelines you should know.
100% Upfront Margin: As per new rules of SEBI the investor needs to have full margin amount in their account even before entering the trade.
Cash and Stock Collateral: SEBI has allowed the investors to now use securities funded via cash collateral to be considered as investors maintenance margin.
Mandatory Pledging: Pledging has become mandatory and investors now ned to formally pledge their shares in the depository system to get the MTF benefits. Brokers now cannot directly hold your shares.
Strict Shortfall Penalties: If the investor is unable to maintain the margin required SEBI might impose hefty daily financial penalties due to the shortfall of the amount.
MTF is an excellent facility but only if you know it correctly. It provides investors the power to get things even if you don’t have the required amount. However one need to always know that it acts as a double edged sword which can help you grow and simultaneously bring your profits down.
By the time you know the costs, know how to monitor your trades on a daily basis, and are aware about the stop-loss usage, it can be a useful tool. But investors shall always keep the risk in their mind. It all comes down to your knowledge and risk appetite. Trade wisely, stay informed, and never let greed dictate your borrowing limits.
For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
MTF is a facility where investors can buy stocks by just paying the part of the total stock price and the remaining amount if funded by the broker.
Is MTF safe for retail investors in India?
It is a safe option only if it is used safely along with proper risk management. Also in this the investor borrows the money, which could amplify the loses if the trade goes against your will.
What are the risks involved in MTF?
There can be multiple risks but one shall always be aware about the leverage risk, margin calls, Interest cost and even the risk of the volatile global market.
Is MTF regulated in India?
Yes MTF is regulated and monitored by the Securities and Exchange board of India (SEBI).
MTF best suitable for?
MTF is generally suitable for experienced market traders or someone who has a high risk tolerance.
The global economy is built on the movement of raw materials. These materials, known as commodities, are the basic building blocks for everything humans consume. From the fuel that powers vehicles to the food served at the dinner table, these assets are essential.
A commodity is defined as a basic good used in commerce that is interchangeable with other goods of the same type. This quality is known as fungibility. It means that one barrel of a specific grade of oil is basically the same as another, regardless of which company produced it.
At the same time, commodity markets serve as a primary tool for price discovery. By bringing together buyers and sellers from every corner of the planet, these markets establish a fair price based on real-time supply and demand.
What Defines the Most Traded Commodities in World
1. Trading Volume versus Market Value
Trading volume refers to the total number of contracts or units exchanged during a specific time and the total price of all those units combined decides the market value. Items like diamonds, have high value but are not traded much as they are not easily standardized or traded on a central exchange.
High liquidity means there are so many buyers and sellers that a person can enter or exit a trade quickly without causing a major change in the price.
2. The Influence of Supply and Demand
The balance between how much of a commodity is produced (supply) and how much is needed (demand) is the primary driver of trade. When factories are busy and people are traveling, the demand for oil and gas rises. On the other hand a drought or a flood in a major producing region can significantly reduce the supply, causing a spike in trading as buyers want to get secured for their needs.
Key Commodity Exchanges
Exchange Name
Primary Commodities
Global Location
Chicago Mercantile Exchange (CME)
Grains, Livestock, Gold
United States
New York Mercantile Exchange (NYMEX)
Crude Oil, Natural Gas
United States
London Metal Exchange (LME)
Copper, Aluminium, Zinc
United Kingdom
Intercontinental Exchange (ICE)
Brent Crude, Coffee, Sugar
Europe/Global
Multi Commodity Exchange (MCX)
Gold, Silver, Crude Oil
India
Primary Categories of Commodities
1. Energy Commodities
This category is the most active part of the market. It includes crude oil and natural gas, which power the transport, heating, and electricity needs of the world. Because every nation needs energy, these markets have the highest trading volumes.
2. Precious Metals
Gold and silver are the leaders in this category. While they are used in jewelry and industry, they are primarily traded as “safe-haven” assets. During times of war or high inflation, investors buy these metals because they tend to hold their value better than paper money.
3. Industrial Metals
These are also known as “base metals”, in this commodities like copper, aluminium, and zinc. These materials are basic raw materials required for building infrastructure from houses, to cars, and even creating electronic gadgets. The world is moving towards clean energy and this requires metals like copper that are becoming important for building solar panels and wind turbines.
4. Agricultural Commodities
In this category products that are grown by the farmers are included, such as corn, jute, wheat, soybean, and coffee. These products are known as grains or softs. These products come under the basic necessity products for the global population and they are highly influenced by weather patterns and government policies related to trade and agriculture.
This is one of the most important & traded commodities on the globe. It is often known as the lifeblood of the entire economy as it fuels everything related to transportation and acts as raw material for chemicals, paints, plastics and even fertilizers.
Oil is an essential need for every country but only few countries produce it, creating a global trade network. There are various factors that affect the price of crude oil and OPEC (Oil Petroleum Exporting Countries) decided the production.
Country
Status
Share of Global Production
United States
Top Producer
Approx 22%
Saudi Arabia
Major Exported
Approx 11%
Russia
Major Producer
Approx 11%
China
Top Consumer
Approx 15%
India
Top Consumer
Approx 5%
2. Gold
This is one of the most traded commodities along with highest liquidity in the exchange trading. This commodity is mainly kept as a financial asset and highly relied on by the investors and banks as it is a safe haven investment.
India and China are the largest consumers of physical gold, primarily for the jewelry market.
3. Natural Gas
Natural gas is one of the most volatile and actively traded commodities in the market. This is due to increasing use of cleaner energy and reduction in carbon emission by many countries. Also, natural gas can be seen as an alternative to coal.
The top producing countries are the United States, Russia and Iran. The globalization expanded with increase in Liquified Natural Gas (LNG) consumption making it easier to transport through sea routes and tankers.
4. Brent Crude
Brent Crude is a type of oil that is used as a standard (benchmark) to set oil prices around the world. Brent is mainly used to set oil prices in Europe, Africa, and the Middle East. Extracted in the North Sea, located between the United Kingdom and Norway.
Since it is produced in the sea, it is easier to transport by ships (tankers) to different countries. Making it flexible to trade compared to WTI oil which is produced inland in the US.
5. Silver
It is used in both jewelry and industrial metals. It is the second most traded precious metal after gold.
It is bought by the masses as an investment and half of its demand comes from industries. It is one of the best electricity conductors and used in solar panels, medical equipment, and electronics. This dual nature means its price is affected by both the general mood of the financial markets and the health of the manufacturing sector.
6. Copper
It is a highly important metal for the industries and used in construction, electrical wiring, and the pipes in our homes.
Investors have nicknamed it as “Dr. Copper” because the price of copper is an excellent indicator of the health of the global economy. When copper prices go up, it usually means that factories are producing more and building projects are increasing. Today, copper is also a key part of the “green revolution” because electric vehicles and wind turbines require much more copper than traditional cars and power plants.
Producing Country
Global Role
Chile
Top Producer
Peru
Major Producer
China
Top Refiner and Consumer
United States
Significant Producer
7. Corn
Corn is the most traded agricultural commodity in terms of volume. It is a versatile crop used for food, livestock feed, and industrial products.
A major factor in corn trading is the biofuel industry. In the United States and Brazil, a large portion of the corn harvest is turned into ethanol, which is mixed with gasoline for cars. This means corn prices are often linked to energy prices. If oil becomes more expensive, the demand for ethanol rises, which then pushes up the price of corn.
8. Wheat
Wheat is the ultimate staple of the human diet. It is used in bread, pasta, and many other foods that are consumed globally. Wheat price is a matter of global food security.
Shortages of wheat can lead to food inflation and even political unrest in developing nations. The market for wheat is highly sensitive to weather events like droughts in Russia or the United States, as well as export restrictions imposed by governments.
9. Coffee
Coffee is one of the few “soft” commodities that consistently ranks among the most traded in the world. It is produced primarily in developing nations in the “Bean Belt” and consumed mostly in developed nations.
There are two main types of coffees Arabica and Robusta. Arabica is good in quality and is used as the benchmark for traders. Brazil and Vietnam are the top exporters, and any frost or heavy rain in these regions can cause coffee prices to jump overnight.
10. Soybeans
Soybeans are becoming the main part of global agriculture. This is used in producing soybean food for animal feed, biofuels and even cooking oil.
The soybean market is highly dependent upon the trade between America and China. Brazil and the United States are the top producers, while China is the top importer as it has massive pig and poultry industries. The growing Asian population will increase the demand for soybeans to rise continuously.
Geopolitical Events: Wars, elections, and diplomatic tensions are the biggest drivers of short-term price moves. Even the threat of a war can cause oil and gas prices to spike as traders worry about a potential supply cut.
Supply Chain Disruptions: Transportation is an important and complex factor consisting of ships, trucks, and trains. Global tensions have increased freight costs (longer routes) and delayed deliveries, making the commodity more expensive for end users.
Weather and Climate Change: Weather is a major factor as a single event of drought or unexpected rain can vanish the crop. And due to climate change these events have increased resulting in high price volatility of products like coffee, wheat, and corn.
Currency Fluctuations: Commodities are mostly traded in the U.S dollar and strengthening of the dollar makes the buying countries pay more for the same quantity. Making it more expensive for international buyers which can decrease the demand.
Inflation and Interest Rates: Commodities can be hedged against inflation as rising inflation prices can increase the value of physical items like gold and oil. Also if the interest rates are high companies have to pay higher interest for borrowing money to stock commodities leading to decrease in prices.
How to Trade Commodities in India
Futures Contracts: A futures contract is an agreement to buy or sell a commodity at a set price on a future date. You do not need to pay the full value of the commodity. Instead, you pay a “margin,” which is a small percentage of the total price.
ETFs and Mutual Funds: If you are not looking for complexities you can invest in Exchange-Traded Funds (ETFs) or Mutual Funds. You can buy units of these funds through your normal Demat account, and the price of the units will move along with the price of the metal.
Spot Trading: Spot trading is the act of buying or selling a commodity for immediate delivery, local jewelers use this often to buy. But for other commodities, spot trading is mainly used by businesses that need the physical goods for their factories.
Commodity Stocks: Another indirect way to trade is to buy shares of companies that produce commodities. When the price of the underlying commodity rises, the profits of these companies usually go up, which can lead to a higher share price.
Risks Involved in Commodity Trading
Price Volatility: A single news or unexpected weather can highly fluctuate the price.
Leverage Risks: Leverage can increase your profits but it also multiplies your losses making you lose more than the initial investment.
Political and Environmental Risks: Changes in government policies can suddenly change the price of a commodity, even natural disasters can disrupt supply creating price swings.
Expiry Risk: Futures contracts have an expiry date and positions must be closed in time or shift to a new contract before expiry.
Understanding the 10 most traded commodities and the factors that drive them helps you to get a clear picture about the trade of commodities across the globe. Learning this information will help you in making better investment decisions.
For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
Crude oil is the most traded commodity in the world by both volume and value.
Can I start commodity trading with a small amount of money?
Yes, in India, you can start with relatively small amounts by trading “Mini” or “Micro” contracts on the MCX.
Do I need a Demat account for commodity trading?
If you are trading futures and options on an exchange like the MCX demat is required but investing in Gold ETFs or mutual funds a standard Demat account is required.
Why are oil and gold prices often linked?
Oil and gold are both priced in U.S. Dollars and during war or global instability, the prices of both often rise because oil supply is threatened and gold is bought as a safe-haven asset.
Is commodity trading safer than stock trading?
Commodity trading is generally considered riskier than stock trading because it is more volatile and involves higher levels of leverage.
Trading in the commodity market can sometimes feel like a puzzle as there are numerous options and features. If you are looking at the Indian markets, you have probably heard about trading gold, silver, or crude oil. These types of products are known as commodities. Here you are trading raw materials that the world uses every day.
When you start, you will have to choose between commodity futures vs options. Both are popular ways to invest on the Multi Commodity Exchange (MCX), which is India’s main platform for these trades. One is a firm promise, while the other is more like an insurance policy.
Commodity Futures
A commodity futures is a direct contract cum agreement, here when you enter a futures trade, you are making a legal promise. You agree to buy or sell a fixed amount of a commodity at a set price on a specific date in the future.
In India, these contracts are standardized. This means the exchange decides the quality and the “lot size” (the minimum amount you must trade). For example, a standard Gold futures contract on MCX is for 1 kilogram, while a Gold Mini contract is for 100 grams.
How Commodity Futures Work
The main thing to understand here is the margin, here investors do not have to pay the full amount of the commodity. Rather you just have to pay a small amount usually between 5% to 15% of the total value of your trade to benign with the trade.
A contract is held by the investor every day and the exchange does a check called “Mark-to-Market” (MTM). If the price movements are in your favour the profits earned are settled directly in your account. And if the price starts to move in the other direction and you start to incur loss then losses are deducted from your account immediately.
Advantages of Trading Futures
Easy to understand: If the price of the commodity is rising then you buy and if the prices starts to fall then you have to sell. In this no complex formulas are used.
High Liquidity: Most of the commodities listed on exchanges have good supply and demand making it easier for the traders to enter and exit anytime.
No Time Decay: Unlike options, a futures contract does not lose value just because time is passing. The price only changes based on the market.
Risks of Futures Trading
Unlimited Risk: Since you are bound by a contract, your losses can be very large. If the price moves sharply against you, you could lose much more than your initial margin.
Margin Calls: If your account balance falls too low due to daily losses, your broker will ask for more money. If you cannot provide it, they will close your position at a loss.
Compulsory Delivery: In India, if you do not close your position before the expiry date, you might have to actually take delivery of the physical goods, like bars of gold.
Commodity Options
Commodity options are a bit more flexible. They give you the “right” to buy or sell a commodity futures contract, but you are not forced to do it. You pay a small fee, called a “premium,” for this right.
In India, commodity options are actually “options on futures.” This means if you exercise your option, it turns into a futures position in your account. This process is called “devolvement”.
How Commodity Options Work
There are two main types of options you need to know:
Call Options: You buy these if you think the price will go up.
Put Options: You buy these if you think the price will go down.
If the market does not move the way you expected, you can just let the option expire. The most you will lose is the premium you paid at the start.
Advantages of Trading Options
Limited Risk: Your loss is capped at the premium you paid, which gives many traders peace of mind.
Lower Capital: You can start trading with a very small amount. While futures might require lakhs of rupees, you can buy some options for just a few thousand rupees.
Multiple Ways to Profit: You can create your own strategies and generate profits even if the market is going up, down or even staying flat.
Risks of Options Trading
Time Decay: With every passing day the value of your option is decreasing even if there are no changes in the price of the commodity.
Complexity: Options are a little complex in nature and they have different moving parts like volatility and Greeks. This makes it a little difficult to learn how they really work.
Devolvement Margins: If your option is about to expire and it has value, the exchange will ask for a high margin because it is about to turn into a futures contract.
In futures, you are locked into a deal and things need to be followed accordingly. In options, you have a choice. If the trade is losing money, you can simply walk away and lose only your premium.
2. Risk Exposure
Futures have “linear risk,” meaning for every point the price falls, you lose money meaning there is no floor. In options (for buyers), the risk is capped as you know your maximum loss before you even click the “buy” button.
3. Cost of Entry
Futures trading is comparatively expensive as high margins are required by the exchange. But options are cheaper to buy, making them famous amongst the retail traders who possess less capital.
4. Profit Potential
Both investments can give you good profits. Although futures are preferred to catch small profits and steady moves. And options usually require a bigger or faster price move to overcome the cost of the premium and time decay.
5. Complexity Level
Futures are easy to get, as investors need to buy if they think the price will go up, sell if they think it goes down. However options are more like a strategy game where you have to balance price, time, and market speed.
Trend Following: This is about “riding the wave.” If you see that crude oil prices are steadily rising because of global news, you buy and hold as long as the price stays above a certain average.
Spread Trading: Here, you buy one contract and sell another related one. For example, you might buy gold for this month and sell gold for next month. You are betting on the “gap” between their prices rather than just the price itself.
Options Strategies
Covered Calls: If you already own physical gold or a long futures position, you can sell a call option to someone else. You collect a premium, which acts like “rent” on your investment.
Protective Puts: If you own gold and you analyse that the price may fall you buy a put option. And if the price starts to crash the profit from your put option covers the loss of your gold.
Straddles and Strangles: These are used when you are sure about the massive moves but have no idea regarding the direction. For example, before a big government announcement, you buy both a call and a put. If the price jumps or crashes, one side will make enough profit to cover the loss of the other.
Factors to Consider Before Choosing
Risk Appetite: How much loss can be handled. If seeing a big negative number on your screen keeps you up at night, buying options might be better because the risk is fixed.
Capital Availability: If you have Rs.20,000 in your account, you cannot trade standard gold futures. You would have to look for options or “micro” lots.
Market Knowledge: For beginners futures are preferred in very small quantities or else one needs to spend time learning the “Greeks” of options before jumping in.
Trading Goals: Futures are often better for very fast trades because they move exactly with the price.
At the end of the day, neither futures nor options are “better”, these are just two different tools used for different purposes. Futures are easy and direct for the traders as it only wants you to be disciplined and know how to manage risk by using the stop-loss feature. On the other hand options are versatile in nature and offer safety to the investors capital, but you need to be right about the market timings for the desired results.
The best way to start this is by learning the in and out about one commodity like crude oil or gold and then monitor its price movements. Also start with small investments, manage your risks, and always have a plan before you enter a trade. It is a great place to invest and earn profits only if you are patient and disciplined.
For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
Can I trade commodities with a small amount like Rs.5,000?
Yes, you can start investing although regular futures require lakhs, but you can trade “Gold Petal” futures or buy options on certain commodities with a very small amount.
Do I have to pay tax on commodity trading profits?
In India, commodity trading profits are usually treated as “Business Income” and you are taxed according to your total income slab.
What is the biggest risk in buying options?
The biggest risk is time decay, if the market stays flat and doesn’t move quickly in your direction, your option can become worthless even if you were “right” about the long-term trend.
Is the MCX market different from the stock market?
Yes, the stock market deals with company shares, while MCX deals with raw goods. MCX also has much longer trading hours, staying open until late at night.
What happens if I forget to close my futures position before expiry?
In many cases, you might be required to take physical delivery of the goods. Most brokers will automatically close your position a few days before this happens to protect you from this complexity.
Scalping is one of the fastest ways of trading in the stock market. Since trades happen so quickly, the trading platform you use matters a lot. A delay of even one or two seconds can change the price at which your order executes. For someone placing dozens of trades in a day, that difference can significantly affect profits.
In this blog, we will explore some of the best scalping trading platforms in India for 2026.
What is Scalping Trading?
Scalping is a short-term trading strategy in which traders try to capture small price changes multiple times during the day. Instead of waiting for a stock to move ₹50 or ₹100, scalpers might target ₹1-₹3 moves repeatedly.
The profit per trade may look small, but if this process is repeated 10-15 times a day, the gains can add up. It’s all about quick decisions, tight risk management, and staying focused in fast-moving markets.
Example
A trader observes strong buying interest in a stock at ₹500.
The trader buys at ₹500
Within a minute, the price moves to ₹501.20
The trader exits quickly
Best Scalping Trading Platforms in India
S.No
Platform
Best For
Key Features
Chart Integration
API Access
Mobile App
1
Kite by Zerodha
Beginners & experienced traders
Fast order placement, Multiple order types, Advanced charts
5-sec candlesticks, AI assistant, One-click execution
Built-in
No
Yes
9
5Paisa
Cost-conscious scalpers
Chart-based execution, Screeners, Low brokerage
Advanced built-in
No
Yes
10
Groww
Beginners & casual traders
Fast execution, Advanced charts, Clean UI
Built-in
No
Yes
Here is an overview of the best platforms for scalping trading.
1. Kite by Zerodha
Kite is one of the most widely used trading platforms in India. For many traders, it is the first platform they encounter when they start trading. Over the years, it has built a reputation for its simple and clean user interface,
Key features include:
Fast order placement
Advanced charting tools
Multiple order types
API support for automated trading
The platform works smoothly on both desktop and mobile, which is useful for traders who want to monitor positions throughout the day. It is A clean, light, and fast app for all your investment and trading needs.
2. Upstox Pro
Backed by Ratan Tata, Upstox is among the most widely recognised discount brokers in India. With a trading application that offers competitive brokerage plans, it has drawn in over one crore customers.
Upstox has grown rapidly over the past few years. Its platform, Upstox Pro, gives charting tools and a smooth interface designed for active traders.
Key highlights include:
TradingView chart integration
Over 100 technical indicators
Real-time market data
API access for algorithmic trading
One advantage many traders appreciate is the flexibility of the charts, which makes quick technical analysis easier.
3. Pocketful
Pocketful is a fintech platform that simplifies the process of stock investing for young, tech-savvy individuals. Although it is relatively new to the Indian market, it has attracted many traders.
What makes Pocketful stand out is its seamless, all-in-one trading experience. You don’t need to switch between multiple screens – everything is available in one place. From index charts to call & put strike prices, price changes, and buying or selling options, everything can be managed on a single screen with just one tap.
Some key features include:
Ultra-fast order execution
Ideal for quick entry and exits
TradingView chart integration
Real-time market data & updates
Same-day withdrawal facility
Up to 5x margin availability
4. Dhan
Dhan was established in 2021; however, it has since gained popularity among active traders. It is designed with a user-friendly interface, modern platforms, and a focus on technology to cater to the needs of the current trading generation.
Unlike many platforms, which are developed for general investors, Dhan has focused on creating tools specifically for traders.
Some useful features include:
Integrated TradingView charts
Advanced options chain
Fast order placement interface
Custom trading layouts
Detailed analytics
Options traders and scalpers often appreciate Dhan’s trader-centric design.
5. Angel One
Angel One has been in operation for a long time and is one of India’s most well-known brokers. Millions of retail traders use it to buy and sell stocks, options, futures, commodities, and even mutual funds. Users know about its low prices and wide reach. It offers so many tools for active traders.
Its platform provides:
Fast order execution
AI-based insights and recommendations
Advanced charting tools
SmartAPI for algorithmic trading
6. FYERS
In 2015, FYERS became a trading member of the NSE and was the first-ever trading platform to hit a milestone of 1,000 clients in the year 2016. FYERS is known for its advanced charting capabilities, making it a favourite among technically oriented traders.
Some of the key features include:
Advanced Charts
Smart Orders
Scalping Mode with market view tailored for scalping
Real-time news
For traders who analyse multiple charts at once, FYERS offers a flexible interface
7. Scalper 2.0 by Sahi
Sahi is a new platform that specifically targets active traders and scalpers. The platform was launched in 2024. The platform was built to be faster and smoother. This is an evolved version of a trading desk that aims to offer faster execution to scalpers.
Key features include:
Fewer clicks and more control
Faster charts & lower latency
Tap exit from charts
Auto stop loss and target price
Dual chart view and smart indicators
8. Flash By IND Stocks
INDstocks’ Flash Trading app is the fastest trading program available in India for scalpers and option traders. Individuals can use it to begin their trading career.
Flash Trading is designed for intraday experts, F&O traders, and scalpers. With its lightning-fast interface, one-click execution, and single-screen trading, INDstocks ensures that each trade you make will be quick.
Key features include:
Super fast entry and exit
AI-assistant, Mind by IND Money, to help with instant analysis.
Scalping available with 5-second candlesticks
One click access to positions & orders.
Set stop-loss and target-price for the same screen.
9. 5Paisa
5Paisa is another brokerage platform that offers competitive pricing and a wide range of trading tools.
For scalpers who execute so many trades every day, keeping brokerage costs low becomes important. 5Paisa offers several pricing plans that can help reduce trading costs.
Some of the key features include:
Trade execution from charts
Robust screeners with real-time market analysis
Advanced charting tools
Mobile and desktop trading
10. Groww
Groww has expanded into stock trading as well, apart from mutual funds. Their app features are centred around the needs of the customers and convenience. It focuses on simplicity and user experience. The interface is clean and easy to navigate, which makes it attractive for beginners.
When you click the “Buy” button, the order travels from your trading platform to the exchange. If the platform has high latency, the price might change before the order gets executed.
For example, suppose you place a buy order at ₹500. By the time it executes, the price may already be ₹501. For a long-term investor, this may not matter much, but for a scalper who wants to benefit from small price moves, it can destroy the trade.
2. Low Brokerage Costs
Scalpers place a large number of trades. Over a month, this adds up to a significant amount. This means brokerage fees can quickly eat up their profits. This is why many scalpers prefer discount brokers with flat fees.
3. Advanced Technical Analysis Tools
Scalpers rely heavily on technical analysis. Quick decision-making often depends on reading charts in real time. For instance, a trader might use a 1-minute chart with VWAP to quickly identify if a stock is showing strength or not. These tools make a platform suitable for scalping trading.
4. Real-Time Market Data
In scalping, outdated data is useless. You need real-time price updates because every second counts. Even a slight lag can lead to poor trade execution.
For example, if your chart shows a breakout but the actual market price has already moved higher, you will end up entering too late. Hence, the real-time data is very important.
5. Market Depth (Level 2 Data)
Market depth shows the number of buy and sell orders at different price levels. This helps scalpers understand short-term demand and supply. Suppose that if there are large buy orders just below the current price, it will act as support.
6. Mobile & Desktop Compatibility
Many traders monitor markets on multiple devices. A good platform should work seamlessly on desktop as well as mobile. You might analyse charts on your laptop, but execute trades from your phone when you are away from your desk.
Scalping may look simple from the outside, but small mistakes can add up quickly and turn into big losses. Here are some common mistakes you should be careful about.
Overtrading Without a Clear Plan: One of the biggest traps in scalping is overtrading. Since the market is constantly moving, it is easy to feel like you should always be in a trade. But not every movement is an opportunity.
Trading Without a Stop-Loss: This is one of the most dangerous mistakes. Because scalpers focus on small price moves, they sometimes assume losses will also stay small. But markets can move quickly against you.
Not Focusing on Liquid Stocks: Liquidity matters a lot in scalping. If a stock has low trading volume, it can be difficult to enter and exit quickly at the desired price.
Conclusion
Unlike long-term investing, where you might hold a stock for months or years, scalping focuses on capturing small price movements within minutes or even seconds. Since everything happens so quickly, the trading platform you use becomes extremely important. Even a small delay in order execution can change the outcome of a trade. That is why opting for the right trading platform matters a lot. A trading platform alone will not guarantee profits. But the right one can make your trading experience smooth. Trade smarter with fast execution & single-screen trading – download Pocketful and start in minutes.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
The Indian stock market consists of multiple exciting stories and big names that have seen the financial market differently. One of such names is Nemish Shah. He is one of the most respected and quiet investors in our country. Many people want to see the Nemish Shah Stocks because his choices often turn into big winners over a long time.
Unlike some investors who like to buy and sell stocks very quickly, the Nemish Shah portfolio is built on the idea of staying patient. His approach is to research strong companies that make physical products. In this blog, we will study the latest portfolio changes made in 2026 and look about the strategy related to investing.
Who is Nemish Shah and Why do People Follow Him?
Nemish Shah is a co-founder and director of Enam Holdings. He started his career in 1984 when he helped build the Enam Group. This company began as a stockbroking firm and later became a leader in helping other companies go public through Initial Public Offerings or IPOs. Today, he is considered one of the smartest minds in the Indian market. People track his portfolio because he is a “value investor”. This means he looks for good companies that are being sold at a cheap price. He does not care about what is popular at the moment. Rather the focus is on traditional businesses and companies that have physical products, factories, and offices.
His reputation is built due to disciplined approach and opting for fundamentally strong companies. He looks for margin of safety so that even if things go a bit wrong, his money stays safe. Also he puts a lot of money into a few companies he trusts rather than spreading it too thin. Investors follow his moves because he focuses on the long term. He often keeps his stocks for ten years or even longer. This patience has helped him build a huge net worth.
Nemish Shah portfolio
The total value of the reported Nemish Shah portfolio in early 2026 is estimated to be around Rs.2,972 crore as per the latest data. This amount only shows the stocks where he owns more than a 1% stake, as these are the ones that must be told to the stock exchanges. As of early 2026, he has about 7 to 8 active stocks in his list. This is a very small number for such a large amount of money. It shows that he has very high confidence in each of these businesses.
In 2026, we can see a few main themes in his portfolio. The first theme is “Industrial Growth.” He is betting heavily on companies that make machines and parts for other industries. These companies are helping India become a global factory. The second theme is “Value Investing.” He continues to hold stocks that have strong profits but might be ignored by some younger investors. The third theme is “Budget Alignment.” Many of his top stocks are in sectors that the Indian government is supporting in the Union Budget 2026. These sectors include defense, electronics, and textiles.
LMW is the biggest holding in the portfolio. As of early 2026, his stake is valued at more than Rs.1,452 crore. He owns about 8.7% to 10.15% of the company through different accounts. LMW is based in Coimbatore and is one of the top three companies in the world that makes machines for spinning textiles. They also make high-tech machine tools and parts for the aerospace and defense industries.
2. Asahi India Glass Ltd
This is the second largest holding, valued at about Rs.1,410 crore. He owns around 5.7% of this company. Asahi India Glass is a leader in making glass for cars and buildings. They have a massive 75% market share in the Indian passenger car glass segment. Maruti Suzuki is also a partner in this company.
3. Elgi Equipments Ltd
His third major holding is Elgi Equipments, with a value of around Rs.266.9 crore. He owns 1.7% of the company. Elgi makes air compressors that are used in many factories and even by the Indian Navy. Elgi is a global company that sells its products to more than 100 countries. They have recently worked on indigenizing high-pressure compressors for naval divers, which means they are making them in India for the first time.
4. Bannari Amman Sugars Ltd.
Bannari Amman Sugars company produces sugar but is more than just a sugar producing company. It is a “green energy” company disguised as a sugar producer. The company is based in Coimbatore and is a master of efficiency.
The company takes the leftover fiber from sugarcane and generates electricity out of it and the molasses is used to make industrial alcohol. Shah holds about 2.6% of this company (valued at roughly Rs. 117 crore). It’s a classic “value” pick of a solid, diversified business that plays a huge role in South India.
5. Investment & Precision Castings Ltd (IPCL)
If you look at a car engine or a high-tech defense tool, chances are a part of it came from a company like IPCL. They are essentially the “surgeons” of the metal world. They use a very old, high-precision technique called “lost-wax casting” to create metal parts that are so complex they can’t be made any other way.
With India pushing to make more defense and aerospace equipment at home, IPCL is sitting in a very sweet spot for long-term growth.
6. Vascon Engineers Ltd.
Vascon is a name you’ll see on construction sites for everything from fancy apartments to high-tech hospitals. The company does everything from design, building, and even managing the projects.
Nemish Shah has been a long-time believer in this Pune-based firm. Also the company has been winning big government contracts lately, like building massive super-specialty hospitals. In a world where urban India is constantly expanding, Vascon is one of the teams actually laying the bricks.
7. Zodiac Clothing Company Ltd.
You might have seen Zodiac stores in premium malls. While many investors chase “fast fashion,” Shah has stuck with this legacy brand. Zodiac is famous for its high-end shirts and ties. They don’t just sell in India; they are a massive exporter, sending high-quality garments all over the world.
It’s a bet on the “premium” consumer, the person who wants a shirt that lasts for years rather than a few months. It’s a stable, reputable brand in an industry that can often be very volatile. Shah holds a stake of roughly 1.48% (with additional holdings through Enam Investment & Services)
New Additions in 2026
In the period leading up to 2026, he added a new stock called Popular Foundations Ltd.. Popular Foundations is a company that works on the foundation and structural engineering of buildings. This fits into the theme of infrastructure and he is showing that he believes in the construction sector for the next few years.
Stocks Added
When a big investor increases his stake in a company they already own, it is a very strong signal. In the recent updates for 2026, there was a noticeable increase in his stake in Asahi India Glass Ltd.. He increased his holding in Asahi by about 1.38%.
Market conditions also played a role here. The Indian auto sector has been growing, and new rules about safety and fuel efficiency mean cars need better glass. Also, the “premiumization” trend in real estate means people want bigger and better windows for their homes. All these things create a “buy signal” for an investor who already knows the company inside out.
In the year leading into 2026, there was one major exit from his portfolio. He completely sold his shares in The Hi-Tech Gears Ltd.. Before this, he held a significant 7.17% stake in the company.
Hi-Tech Gears makes parts like transmission gears for automobiles. While it is a good business, he might have decided to sell because the stock price might have reached a level where it was no longer “cheap” or “undervalued.” Or he is planning to use this money and put it into other sectors like infrastructure (Popular Foundations) or increase his stake in glass (Asahi).
He also made very small reductions in two other companies. He reduced his stake in LMW by a tiny 0.04% and in Vascon Engineers by 0.04%. These are so small that they are probably just for “portfolio rebalancing.”
Sector Allocation Breakdown
Sector Category
Major Companies in Portfolio
Allocation (%)
Industrial Goods & Machinery
LMV Ltd., Elgi Equipments
52% – 57%
Auto Components
Asahi India Glass, IP Castings
43%
Food & Beverages (Sugar)
Bannari Amman Sugars
4%
Real Estate & Infrastructure
Vascon Engineers, Popular Foundations
2%
Apparel & Consumer Goods
Zodiac Clothing
Minimal
Small-cap vs Mid-cap vs Large-cap Allocation
In the Nemish Shah portfolio, we see a mix of these.
Large and Mid-cap: Asahi India Glass and Elgi Equipments are quite large. Asahi has a market value of over Rs.20,000 crore. These stocks provide stability.
Small-cap: Companies like Bannari Amman Sugars and Investment & Precision Castings are smaller. They have a market value of around Rs.4,500 crore or less. These are the ones that can grow their profits by many times if things go well.
Micro-cap: A stock like Zodiac Clothing is very small. This is a tiny part of his portfolio and shows he is willing to take small risks on micro-sized businesses if the price is very low.
Key Investment Themes in 2026 Comparison with 2025
If we compare the portfolio of 2026 with 2025, the main idea has stayed the same. He still loves traditional manufacturing. However, there are a few subtle changes in the “themes.”
In 2025, the theme was mostly about “recovery.” Many companies were coming back after the difficult years of the pandemic. He held his positions and waited for them to grow. By 2026, the theme has shifted to “Scale and Technology”. For example, LMW is scaling up in aerospace and defense parts. Elgi is building advanced vacuum pumps.
Another change is the impact of government policy. In 2025, the “Make in India” plan was growing. By 2026, the Union Budget has brought even more focus to things like electronic chips and defense exports. Nemish Shah’s stocks like LMW and Elgi are right in the middle of this trend.
Risk Factors in the Portfolio
Concentration Risk: The portfolio is concentrated in only 7 to 8 stocks, if one company performs very poorly, it will hurt his whole portfolio.
Cyclical Industry Risk: Most of these companies work in cycles for example the sugar industry works according to the weather cycle and government policies.
Industrial Slowdown: If the economy starts to decline and factories start to produce less products & invest less in machines overall growth of the company will decline.
Key Man Dependency: The success depends upon the top management of these companies. If the CEO resigns the company might struggle instantly and it would be difficult to maintain its high ROCE.
Global Export Risks: During a global trade war or recession a company that functions globally will be affected in its exports and revenue.
Have a Filter: One should always use the 9% ROCE rule and do not rely on rumours or information that came from the internet or friends. Check the company’s fundamentals and look how well the profit is being made.
Patience is Key: Investing is a game of patience and the best returns are generated over a long time. Most of the investments done in the portfolio are based on long term outcomes.
Know Your Business: The investments done by him are only in companies that are making real products, so always choose a company whose functioning and revenue stream are clear.
Watch the Management: An excellent management can make a small company reach greater heights. The companies opted by Nemish Shah generally have an excellent top management as these are the real game changers.
Don’t Over-Diversify: You don’t need to diversify or look for 50 different stocks. Rather you can look for 5-10 companies that might give you a real return. One shall do an in depth study related to a few companies rather than researching multiple companies.
Conclusion
The Nemish Shah portfolio changes in 2026 tells us about how disciplined and simple works. He is focusing on the industrial growth of India by investing in manufacturing companies like LMW, Aashi India and Elgi. He does not diversify and look for catchy new technology or even quick market trends. Rather the focus is mainly on high value, high ROCE and honest management.
The portfolio dominance shows us the confidence in the developing Indian economy and increasing manufacturing capacity of India. Although risk is persistent in the financial market, long term investments can lower your risks.
For more market news and insights, download Pocketful – offering users zero brokerage on delivery trades and an easy to use platform designed for both beginners and experienced investors.
S.NO.
Check Out These Interesting Posts You Might Enjoy!
Nemish Shah is a veteran Indian investor and the co-founder of Enam Holdings. He is famous for his value investing style and for identifying great companies long before they become popular.
What are the highest bought shares in Nemish Shah’s portfolio?
Most of the investment is done in Lakshmi Machine Works (LMW) and Asahi India Glass. Other important stocks include Elgi Equipments and Bannari Amman Sugars.
New stocks added to the portfolio in 2026?
In the year 2026, Popular Foundations Ltd. was added to his portfolio. This company is involved in the foundation and engineering part of the construction industry.
What is his investment Strategy?
He looks for companies with a Return on Capital Employed (ROCE) of more than 9%. He also wants strong management, clear growth plans, and a fair stock price. He usually keeps a small, concentrated portfolio and holds his shares for the long term.
How has the Union Budget 2026 helped his stocks?
In the budget 2026, the main focus was on companies related to defense equipment, electronics manufacturing, and infrastructure.
Open Free Demat Account
Join Pocketful Now
You have successfully subscribed to the newsletter
There was an error while trying to send your request. Please try again.
