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  • Best Waste Management Stocks in India 2025

    Best Waste Management Stocks in India 2025

    Previously, garbage collection and disposal were managed in an unorganised way by both government and private players. With the growing focus on smarter and cleaner solutions, the waste management industry has attracted significant attention from investors and companies alike. Government initiatives, such as the Swachh Bharat Mission, along with various incentives, have further strengthened the sector’s growth potential.

    In this blog, we provide an overview of the top waste management stocks in India, along with their benefits and key factors to consider before investing.

    What are Waste Management Stocks

    Waste management stocks represent companies engaged in the collection, treatment, recycling, and disposal of various types of waste, including municipal solid waste, industrial waste, e-waste, and plastic waste. These companies provide essential services to ensure environmental hygiene, sustainable recycling, and efficient waste-to-energy solutions. Investors looking at this sector are essentially investing in businesses that contribute to a cleaner and greener environment while generating revenue from waste management operations.

    The sector has gained prominence due to increasing urbanisation, stricter environmental regulations, and government initiatives such as the Swachh Bharat Mission. Waste management companies are also attractive to ESG-focused investors, as they actively support environmental sustainability. 

    Top Waste Management Stocks

    1. VA Tech Wabag Limited
    2. ION Exchange (India) Limited
    3. Ganesha Ecosphere Limited
    4. EMS Limited
    5. Antony Waste Handling Cell Limited
    6. Eco Recycling Limited
    7. Concord Enviro Systems Limited
    8. Z – Tech (India) Limited
    9. Race Eco Chain Limited
    10. Namo eWaste Management Limited

    Read Also: Best Recycling Stocks in India

    Market Information of Best Waste Management Stocks

    CompanyCurrent Market Price (in ₹)Market Capitalisation (in ₹ crore)52-Week High (in ₹)52-Week Low (in ₹)
    VA Tech Wabag Limited1,4358,935 1,9441,109
    ION Exchange (India) Limited4065,955 744400
    Ganesha Ecosphere Limited1,1733,142 2,484 1,149
    EMS Limited5402,997 1,017527
    Antony Waste Handling Cell Limited5451,546 859460
    Eco Recycling Limited5861,131 1,045502
    Concord Enviro Systems Limited5061,047 860409
    Z – Tech (India) Limited585838 731326
    Race Eco Chain Limited225388 405 210
    Namo eWaste Management Limited204466 284127
    (As of 30th September 2025)

    Best Waste Management Stocks in India – An Overview

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

    1. VA Tech Wabag Limited

    The company was founded in 1995 and was initially named Balcke Durr And Wabag Technology Limited, and later in 1999 it changed its name to Va Tech Wabag Limited. In 2010, the company launched and got itself listed on the Indian Stock Exchange. Between 2005 and 2007, a management team led by Rajiv Mittal, with the support of ICICI Venture, acquired VA Tech Wabag from Siemens. The company’s headquarters are situated in Chennai. 

    2. ION Exchange (India) Limited

    The company was founded in 1964 as a subsidiary of UK Permutit Company. Over a period of time, the company divested its holding and ION Exchange became a wholly Indian Company. In 1996, it commissioned its first-ever seawater RO desalination plant in India. In 1998, it launched its first consumer brand, known as Zero B, to provide a water purification solution for the home. The company carries out its operations in over 25 countries. The company’s headquarters are situated in Mumbai.

    3. Ganesha Ecosphere Limited

    The company was incorporated in 1987 and was initially named Ganesh Polytex Limited. Later in 2011, it changed its name to Ganesha Ecosphere Limited. In 1995, it began manufacturing recycled polyester staple fibre to use post-consumer PET bottle waste. The company’s manufacturing units are spread across India, located in Kanpur, Rudrapur, and Bilaspur. In 2021, the company acquired a PET washing plant in Nepal. The company’s headquarters are situated in Kanpur.

    4. EMS Limited

    The company was incorporated in 2010. The company is primarily engaged in providing wastewater collection and treatment. Their business is related to engineering, procurement, and construction of sewage treatment plants, water supply systems, and water treatment plants. The company operates various projects under government schemes, including AMRUT, Jal Jeevan Mission, and Smart Cities. The company launched its IPO in 2023. The company’s headquarters are situated in Noida.

    5. Antony Waste Handling Cell Limited

    The company was founded in 2001 and was incorporated as a private limited company. It is one of the largest municipal solid waste management companies in India. Antony Waste Handling Cell Limited offers an end-to-end solution from the collection of waste to converting it into waste-to-energy. In 2008, the company received its first private equity funding. The company came up with an IPO in 2020 and became a publicly listed company. The company’s headquarters are situated in Maharashtra.

    6. Eco Recycling Limited

    The company was originally founded in 1994 as Soni Capital Market Limited and was engaged in financial activities. The company’s founder, B.K. Soni, later decided to pivot into e-waste management solutions, leading to the establishment of Eco Recycling Limited. The company has set up numerous e-waste collection centres across Mumbai, in collaboration with the Municipal Corporation of Mumbai. The company’s headquarters are situated in Mumbai.

    7. Concord Enviro Systems Limited

    The company was founded in the year 1992 and is operating in various industries, including beverage, textile, defence, etc. The company also provides environmental solutions for industrial waste. The company operates globally and works in Asia, North Africa, the Middle East, and Europe. The company became a publicly listed company in 2024 by launching its IPO. In 2024, the company bagged the largest export order from Diageo for water waste management. The company’s headquarters are situated in Mumbai.

    8. Z – Tech (India) Limited

    The company was incorporated in 1994. Initially, it was registered as a private limited company. In 2023, the company passed a board resolution to convert the company from a private limited company into a public limited company. The company creates eco-conscious parks using recycled materials and implements advanced solutions to manage industrial wastewater. It also offers engineering services for ground improvement, retaining structures, and coastal protection. The company’s headquarters are situated in Delhi.

    9. Race Eco Chain Limited

    This company was incorporated in 1999, and initially, it was known as Anisha Impex Private Limited. The company aggregates plastic waste and channels it into recycled consumer products. It operates across India through its 57 franchisees and has collaborated with 17 recycling partners. The company launched its IPO in 2014, and later in 2021, it changed its name to Race Eco Chain Limited. The company’s headquarters are situated in New Delhi.

    10. Namo eWaste Management Limited

    The company was incorporated in 2014, and the founder drew inspiration from the e-waste practices followed in the UK. The company offers a comprehensive range of e-waste solutions, including electronic recycling and IT asset disposition. The company has its manufacturing facilities located in Faridabad and Palwal. The company launched its IPO in 2024. The company’s headquarters are situated in Delhi.

    Read Also: Top 10 Consumer Staples Stocks in India

    Key Performance Indicators (KPIs)

    CompanyOperating Profit Margin (%)Net Profit Margin (%)ROE (%)ROCE (%)Debt to Equity
    VA Tech Wabag Limited13.998.8813.7916.780.17
    ION Exchange (India) Limited10.887.5717.2019.610.25
    Ganesha Ecosphere Limited11.847.038.9610.850.48
    EMS Limited26.6519.0218.8123.980.09
    Antony Waste Handling Cell Limited16.0910.7712.9411.690.72
    Eco Recycling Limited73.4953.1826.6333.300.03
    Concord Enviro Systems Limited14.558.929.6415.520.24
    Z – Tech (India) Limited29.1820.7611.8115.950.01
    Race Eco Chain Limited1.750.747.1512.441.13
    Namo eWaste Management Limited8.945.649.5214.720.03
    (Data as of March 2025)

    Benefits of Investing in Waste Management Stocks

    There are significant benefits of investing in waste management stocks, a few of which are as follows:

    1. Government Support: The government is supporting waste management companies by offering them various incentives for managing and recycling waste to improve environmental conditions.
    2. Defensive Sector: The waste management sector is considered defensive, as during an economic downturn, the waste still needs to be collected and disposed of.
    3. ESG Investor: There is a set of investors who primarily focus on ESG or Economic, Social, and Governance companies, as it can protect the environment.
    4. Dividend: A few waste management companies declare regular dividends to attract conservative investors who are seeking regular income.

    Factors to be considered before investing in Waste Management Stocks

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

    1. Financial Performance: The company’s financials need to be considered before making any investment decision. Companies with higher revenue and profit margins must be preferred by an investor.
    2. Client Base: One must look for the renewable rate and client retention rate before investing in waste management companies. The higher the client base, the higher the chances of growth potential.
    3. Technological Advancement: Companies investing in innovation and research should be chosen as investment options. Modern waste processing mechanisms can improve the efficiency and profit margins of the company.
    4. Geographical Reach: The company’s geographical reach also plays a key role in deciding on a waste management company for investment. Expansion into tier 2 and 3 cities can be a growth driver for the companies.

    Read Also: List of 10 Top Smallcap Stocks in India on NSE

    Future of Waste Management Stocks 

    As the world is moving towards a cleaner and greener society, waste management companies appear to have a bright future. Due to urbanisation, the demand for recycling and treatment services will increase. The government is also supporting these companies through various incentive programmes and by enforcing strict environmental laws. There are various reports that state that this industry is currently valued at around 13.6 billion USD, and is expected to grow at a rate of 7.2% CAGR and will reach 19.3 billion USD by 2030.

    How to invest in Waste Management Stocks 

    One can follow the steps below to invest in waste management stocks:

    1. Opening a Demat Account: The first step to open a demat account, using which you can purchase the shares of waste management companies. Pocketful offers you a facility to open a lifetime free demat account.
    2. Fund Transfer: Then, you need to transfer the funds to your trading account.
    3. Identifying Stocks: After this, you need to identify the suitable companies in which you wish to invest based on various research parameters.
    4. Buying Stock: Once you identify the stock then you need to place a buy or purchase order using a mobile application provided by your broker.
    5. Review: A periodic review is required in order to book profit and rebalance your portfolio. As the fundamentals of companies change over time.

    Read Also: Best Cloud Computing Stocks in India

    Conclusion

    In conclusion, the Indian waste management sector is witnessing steady growth as both organised and unorganised players tap into its vast potential. Supported by government initiatives and driven by rapid urbanisation, the industry is set for significant expansion in the coming years. Its ESG-friendly profile and defensive nature have further boosted investor interest, making it a compelling theme for long-term portfolios. However, since the business is capital-intensive and requires continuous innovation, investments in this sector also involve risks. Hence, investors should carefully evaluate opportunities and consult a financial advisor before making any decisions.

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    Frequently Asked Questions (FAQs)

    1. What are some best waste management stocks in India?

      The best waste management stocks in India are EMS Limited, Antony Waste Handling Cell Limited, Eco Recycling Limited, Concord Enviro Systems Limited, VA Tech Wabag Limited, etc.

    2. Is it a good time to invest in stocks of waste management companies?

      Yes, one can invest in stocks of waste management companies, as with the increase in population and urbanisation, increases more waste and with the support of government incentives, the waste management companies have strong growth potential.

    3. What are the main types of waste management businesses?

      The main types of waste management businesses include municipal solid waste management, plastic waste management, e-waste recycling, and industrial and hazardous waste management.

    4. Do waste management companies fall under ESG criteria?

      Yes, waste management companies meet the criteria of environmental, social and governance.

    5. Is foreign investment allowed in the Indian waste management sector?

      Yes, foreign companies are allowed to invest in the Indian waste management sector. Various global waste management companies are partnering with Indian companies to set up their operating units in India.

  • Top Hospital Stocks to Buy in India 2025

    Top Hospital Stocks to Buy in India 2025

    India is growing very rapidly, and its healthcare sector is fueling its growth. In the Healthcare Sector, Hospitals play a vital role, and recently, with rising healthcare awareness, lifestyle diseases, and government capex for the healthcare sector, provide an opportunity for investors.

    In today’s blog post, we will give you an overview of the top hospital stocks to buy in India 2025, along with the benefits of investing in hospital stocks.

    What are Hospital Stocks?

    Hospital stocks refer to the shares of companies that operate hospitals. Clinic, at a different location. Their primary source of revenue is from patient care services, diagnostic, and surgical services, etc.

    Top Hospital Stocks to Buy in India 2025

    1. Max Healthcare Institute Limited
    2. Apollo Hospital Enterprises Limited
    3. Fortis Healthcare Limited
    4. Global Health Limited
    5. Narayana Hrudayalaya Limited
    6. Aster DM Healthcare Limited
    7. Chandan Healthcare Limited
    8. Dr Agarwal’s Eye Hospital Limited
    9. Metropolis Healthcare Limited
    10. Krishna Institute of Medical Science Limited
    CompanyCurrent Market Price (INR)Market Capitalisation (in INR crore)52-Week High52-Week Low
    Max Healthcare Institute Limited1,1121,08,098 1,314889
    Apollo Hospital Enterprises Limited7,4621,07,384 7,9816,001
    Fortis Healthcare Limited96873,115 983521
    Global Health Limited1,32035,470 1,456936
    Narayana Hrudayalaya Limited1,76636,113 2,3721,185
    Aster DM Healthcare Limited62432,333 675386
    Chandan Healthcare Limited232568 279140
    Dr Agarwal’s Eye Hospital Limited4,8282,269 7,3003,500
    Metropolis Healthcare Limited2,02710,500 2,3181,315
    Krishna Institute of Medical Science Limited72228,886 798474
    (As of 29th Sep 2025)

    Read Also: List Of Best Healthcare Stocks in India

    Overview of Top Hospital Stocks to Buy in India 2025

    The overview of the top hospital stocks to buy in India is as follows:

    1. Max Healthcare Institute Limited

    Max Healthcare Institute Limited was initially founded as “Infinitum Technologies Private Limited” in 2001. The company was renamed Max Healthcare Institute Limited in 2002 & Listed in Market in 2002  . The company is backed by Radiant Life Care and the international investment firm KKR. It operates about 22 hospitals, including diagnostic centres, hospitals, and speciality clinics primarily in North India. The company’s headquarters is situated in New Delhi.

    2. Apollo Hospitals Enterprise Limited

    Apollo Hospitals Enterprise Limited is one of the largest private healthcare companies in India. It has a long history of being the first to offer private healthcare in the country. Dr Prathap C. Reddy started the company in 1983. It established India’s first corporate hospital in Chennai, which revolutionised the way healthcare was delivered in the country. The company opens various hospitals across North India, offering multi-organ transplants. The company’s headquarters is situated in Chennai.

    3. Fortis Healthcare Limited

    Fortis Healthcare Limited was founded in 1996 by two brothers named Malvinder Mohan Singh and Shivinder Mohan Singh, as a subsidiary of Ranbaxy Laboratories. In Mohali, Punjab, Fortis Healthcare opened its first hospital, the Fortis Heart Institute, in 2001. Several Fortis hospitals hold certifications from both international and Indian accrediting organisations, including JCI (Joint Commission International) and NABH (National Accreditation Board for Hospitals & Healthcare Providers). The company’s headquarters is situated in Gurgaon.

    4. Global Healthcare Limited

    Originally part of Global Health Private Limited, it was founded in 2004 by renowned cardio surgeon Dr Naresh Trehan. With various strategic acquisitions, it has expanded into various parts of India, including Lucknow, Ranchi, Patna, etc. For expansion, the company launched its IPO in 2022 and became a publicly listed company. Their hospitals are generally known as Medanta. It has its headquarters situated in Gurugram.

    5. Narayana Hrudayalaya Limited

    Narayana Hrudayalaya Limited, also known as Narayana Health, is a famous private hospital network in India, which was founded in 2000 by cardiac surgeon Dr Devi Prasad Shetty. Through both organic growth and acquisitions, Narayana Health, one of the largest healthcare providers in India, has expanded significantly over the years. In 2016, Narayana Health was listed on the BSE and NSE. The company’s headquarters is situated in Bengaluru. 

    6. Aster DM Healthcare Limited

    Aster DM Healthcare Limited was founded by Dr Azad Moopen in 1987. It started with a clinic in Dubai, and in 2001 started its operations in Kerala. Currently, they have more than 19 hospitals in India. The company launched its IPO in 2018 and became a publicly listed company. The company has its registered office in Bengaluru. 

    7. Chandan Healthcare Limited

    This company was incorporated on 3rd September 2003. The company started with a diagnostic centre in Lucknow. The company expanded its diagnostic centre across India. It has recently opened a 300-bed multi-speciality hospital in Lucknow. Chandan Healthcare came up with an IPO recently in February 2025 and became a publicly listed company. The headquarters of Chandan Healthcare is situated in Lucknow.

    8. Dr Agarwal’s Eye Hospital Limited

    In 1957, Dr Jaiveer Agarwal and his wife, Dr Tahira Agarwal, founded this hospital. It offers a wide range of ophthalmology services, such as treatment for cataracts, refractive surgery, glaucoma, retina, and other conditions affecting the eyes. It has opened more than 150 hospitals throughout the nation over time. In 2025, it went public. Chennai is home to the company’s headquarters.

    9. Metropolis Healthcare Limited

    The company began its operation in 1980 and was founded by Dr Sushil Kanubhai Shah as a diagnostic centre in Mumbai. Later in 2001, his daughter Ameera Shah took charge of the company. The company has made various strategic acquisitions and expanded into countries in the Middle East and Africa. Metropolises launched its IPO in 2019. Metropolis headquarters is situated in Mumbai.

    10 Krishna Institute of Medical Science Limited

    The company was incorporated in 1973 and was initially named Jagdish Singh and Sons Private Limited. The first hospital by the company was opened in 2000. It changed its name to Krishna Institute of Medical Science Private Limited in 2004. The company acquired various hospitals across India. KIMS came up with an IPO in 2021 and became a publicly listed company. It has its headquarters in Telangana.

    Read Also: List Of Best Pharma Stocks in India

    Key Performance Indicators (KPIs)

    The key performance metrics of top hospital stocks are as follows:

    CompanyDebt to EquityROE (%)ROCE (%)Operating Profit Margin (%)Net Profit Margin (%)
    Max Healthcare Institute Limited0.2711.4612.2723.4015.30
    Apollo Hospital Enterprises Limited0.6417.6015.3211.306.75
    Fortis Healthcare Limited0.258.6810.5016.3010.25
    Global Health Limited0.0413.1918.0122.0414.40
    Narayana Hrudayalaya Limited0.6121.8017.9519.8814.41
    Aster DM Healthcare Limited0.19156.8711.5916.04131.13
    Chandan Healthcare Limited0.2817.2121.4524.5616.08
    Dr Agarwal’s Eye Hospital Limited0.4626.0715.9821.1813.76
    Metropolis Healthcare Limited0.0110.8913.3115.7310.93
    Krishna Institute of Medical Science Limited0.3313.9714.6730.0121.88

    Benefits of Investing in Hospital Stocks

    The key benefits of investing in Hospital Stocks are as follows:

    1. Increasing Demand: The demand for healthcare services is increasing. Lifestyle diseases and preventive health checkups have increased the demand for hospitals.
    2. Defensive Sector: The healthcare sector is always considered a defensive sector by the investor; it generally tends to give stable returns during market downturns.
    3. Diversified Revenue: Revenue of the hospital comes from multiple sources, including surgeries, consultation fees, diagnostics, pharmacy, etc.
    4. Government Initiatives: Numerous healthcare schemes are launched by the Government of India, including Ayushman Bharat. It increases accessibility for people to the hospital and increases volume.

    Factors to Consider Before Investing in Hospital Stocks

    There are various factors which one should consider before investing in hospital stocks, a few of which are as follows:

    1. Geographical Presence: Geographical presence plays an important role in the growth of a hospital. Higher urban presence results in a higher patient count and a higher bed occupancy ratio than in rural areas.
    2. Technological Advancement: Hospitals with advanced technological equipment, such as laser and robotic surgeries, AI-based diagnostics, generally have a competitive edge over others. 
    3. Financial Performance: The financial performance of a company plays an important role; one should opt for investment in those hospital stocks that generally have higher revenue and profit margins.
    4. Efficiency: There are various factors, like bed occupancy rate, average revenue per bed, etc. play an important role in the selection of hospital stocks for investment.

    Read Also: Best Diagnostic Stocks in India

    Future of Hospital Stocks

    The future of hospital stocks is very promising. Lifestyle-related diseases such as diabetes, cardiac arrest, etc., have increased rapidly over time. Also, people are getting aware of preventive healthcare checkup; therefore, they tend to visit hospitals regularly. Along with this India is emerging as a major medical global hub for the world; patients across the world travel to India for lower treatment costs. India’s hospital industry is valued at around 119 crores in 2024, which is expected to grow to 232 crores by 2033. 

    Read Also: Best Cloud Computing Stocks in India

    Conclusion

    On a concluding note, the Indian healthcare sector provides an opportunity to create wealth in the long run. The hospital plays a key role in the overall growth of the Healthcare industry. Along with the long-term growth potential, having exposure to the hospital sector offers stability in the portfolio during economic downturns, as it is considered a defensive investment option. However, before making any investment, one should consider key factors into account, such as financial performance, bed capacity, etc. However, it is advisable to consult your investment advisor before making any investment decision.

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    Frequently Asked Questions (FAQs)

    1. Name some top hospital stocks to invest in India?

      The top hospital stocks to invest in India are Apollo Hospital Enterprises Limited, Max Healthcare Institute Limited, Fortis Healthcare Limited, Chandan Healthcare Limited, Dr Agarwal’s Eye Hospital Limited, etc.

    2. Is it safe to invest in hospital stocks?

      Yes, investment in hospital stock is considered a safe investment option. They are defensive in nature, and their demand remains consistent even during the economic downturn. 

    3. Does the hospital stock declare a dividend?

      Yes, there are some hospital stocks which regularly declare dividends. 

    4. What are the risks related to investing in Hospital Stocks?

      There are various risks related to investing in hospital stock, such as valuation risk, operational risk, and regulatory risk.

    5. What is medical tourism?

      Medical tourism is the practice of travelling to another country to get medical treatment because of affordability.

  • Demat Account: Fees & Charges

    Demat Account: Fees & Charges

    Have you ever thought about how your valuable investments and shares are safely kept in the stock market world? This safety locker is called the Demat account, it acts similar to a bank account that securely holds your money, as Demat account acts as your digital wallet safeguarding your stocks, bonds and mutual funds in an electronic form. 

    Demat entered as a game changer as in primitive times stocks, bonds and even mutual funds were given on a paper based certificate which was susceptible to loss, theft or damage. Demat account offers you a seamless, secure and easy to manage online market holdings, that is accessible to you from anywhere at any time.  

    Demat Account an Overview

    A Demat account is an account that holds shares and securities in electronic form, eliminating the need for physical certificates. It simplifies trading, transfer, and safekeeping of investments in the stock market. 

    Today, having a Demat account is mandatory if you want to invest in the stock market.   In the old days, when you bought shares of a company, you would get actual paper certificates. The problem was, these physical certificates could be lost, stolen, damaged, or even faked. Transferring them to someone else was a slow process filled with paperwork. With a Demat account, all these certificates are stored electronically, making investing safer, faster, and hassle-free.

    Guide to Demat Account Charges

    Demat account charges are not as complicated as they sound. We can break them down into two simple categories, charges from your broker like Pocketful and charges from the government and other bodies.

    1. Demat Account Opening Charges

    This is a one time fee that some brokers charge you just to set up your account. Many traditional banks and full service brokers still have this fee.   

    But here’s the great news. At Pocketful, we believe starting your investment journey should be free. That’s why Pocketful has zero demat account opening charges. You can open your account with us and start your journey without paying a single rupee.   

    2. Demat Account AMC Charges

    Annual Maintenance Charges, or AMC, is a fee that brokers charge every year to keep your account active. You can think of it as a small “rent” for your digital locker. This is a charge you have to pay even if you don’t make any trades during the year.   

    Here Pocketful makes a huge difference. We want you to feel comfortable, whether you invest daily or just once a year. Pocketful has zero demat account AMC charges. This means you save money every single year, money that can stay in your pocket or be invested for your future.   

    Many other brokers in the market charge an AMC, which can range from Rs.300 to over Rs.900 every year. This is a recurring cost that our users simply don’t have to worry about.   

    3. Brokerage and Transaction Fees

    Brokerage is the fee your broker charges when you buy or sell shares. This is one of the most important demat account fees to understand because it can directly affect your profits.   

    There are two main types of brokers:

    • Full-Service Brokers : They often provide research and advice but charge a percentage of your trade value. So, the bigger your investment, the higher the fee.
    • Discount Brokers (like Pocketful) : Provides you a great platform for you to invest on your own, but at a much lower cost. They usually charge a flat fee, which makes the cost predictable.   

    Here is Pocketful’s simple and transparent brokerage structure :   

    • Equity Delivery : When you buy shares and hold them for more than a day, it’s called a delivery trade. At Pocketful, the brokerage for this trade is Rs.0.
    • Intraday Trading and F&O : If you buy and sell on the same day (intraday) or trade in Futures & Options, we charge a flat fee of Rs.20 per executed order, or 0.03% of the order value, whichever is lower. It’s simple, flat, and predictable.

    4. Government and Depository Charges

    These charges are not from your stockbroker. They are a part of the system for every investor in India, no matter which broker you choose. 

    DP (Depository Participant) Charges : When you sell shares from your Demat account, a small fee is charged by the depository (CDSL) and the DP (Pocketful). This is for the service of debiting the shares from your account. At Pocketful, this charge is just Rs.13.5 + GST per transaction.   

    • Taxes (STT & GST) :
    • STT (Securities Transaction Tax) : This is a small tax paid directly to the government when you trade on the stock exchange i.e. 0.1% on both buying and selling.
    • GST : This is the standard Goods and Services Tax, which is 18% applied to the broker’s fees (like brokerage, transaction charges, SEBI turnover fees and other taxes).   
    • Stamp Duty : This is a tax charged by the state government on all your ‘buy’ transactions. (0.015% on turnover of buy delivery orders)
    • Exchange Transaction Charges : The stock exchanges (NSE and BSE) charge a very tiny fee on your trades for providing the trading platform. (BSE: 0.00375% NSE: 0.00297%)
    • SEBI Turnover Fees : This is a small fee charged by Securities and Exchange Board of India when you buy or sell in the stock market. This fee is generally collected by your broker to cover regulatory and developmental expenses of SEBI. (0.0001% of the turnover)

    To make it even simpler, here is a quick look at Pocketful’s main charges:

    Charge TypePocketful’s Fee
    Account Opening₹0
    Annual Maintenance (AMC)₹0
    Equity Delivery Brokerage₹0
    Intraday & Futures Brokerage₹20 per executed order or 0.03% of turnover, whichever is lower
    Options Brokerage ₹20 per executed order
    Interest Rate for MTF5.99% upto Rs, 1 Lakh which is lowest among the peers

    Read Also: Demat Account Charges Comparison

    Advantages and Disadvantages of a Demat Account

    Advantages

    • Safety : Your investments are held digitally, so there’s no risk of theft, loss, or damage.   
    • Convenience : You can access and manage your portfolio from anywhere, at any time, using your phone or laptop.   
    • Speed : Buying and selling happen quickly, with shares getting credited or debited from your account in just a day or two (T+1 settlement).   
    • Easy Tracking : You can see all your different investments like shares, bonds, mutual funds at one single place.   
    • Loan Facility : You can use the securities in your Demat account as collateral to get a loan from a bank if you require funds.  

    Disadvantages

    • Costs are Involved : There are multiple charges attached as we’ve discussed earlier. But by choosing a discount broker like Pocketful, you can minimize these charges, especially with our zero AMC policy.   
    • Requires Technology : To operate a Demat account, you need a smartphone or computer and an internet connection. This can be a challenge for people who are not comfortable with technology.   
    • Risk of Over trading : Because it’s so easy to buy and sell, some people might be tempted and can do emotional trading too often without a proper plan. This can lead to losses.   

    Key Factors to Consider 

    • Go Paperless : Always choose email statements and contract notes. Asking for physical copies can lead to courier charges.   
    • Trade Online : Placing orders over the phone with a dealer is called ‘Call & Trade’, this service usually has an extra charge. At Pocketful, it’s Rs.25 + GST per order. Using our free online platform is a smarter choice.   
    • Consolidate Your Accounts : If you have multiple Demat accounts with other brokers that you don’t use, consider closing them. This will reduce confusion and help you avoid any maintenance charges they might be adding.   
    • Intraday Timings : If you are an intraday trader, make sure to close your open positions before the market closes. If you don’t, the broker will automatically close them, which can attract an ‘auto-square off’ penalty. At Pocketful, this is Rs.25 + GST per order.   

    Read Also: What are Account Maintenance Charges (AMC) for a Demat Account?

    Conclusion

    With a transparent partner like Pocketful, these charges are not hidden but are clear and manageable part of your plan. Our zero demat account opening charges and zero demat account amc charges are designed to remove the biggest cost barriers, especially for new investors.

    Your financial future is in your hands. Now that you understand the costs, you can start your journey with confidence. Join the club of zero fees and infinite possibilities with Pocketful.

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    Frequently Asked Questions (FAQs)

    1. Can we open more than one Demat account? 

      Yes, you can open multiple Demat accounts with different brokers. However, you cannot open more than one account with the same broker. All your accounts are linked to your single PAN card, which helps in tracking.   

    2. What is the main difference between a Demat and a Trading account? 

      Trading account is the ‘shopping cart’ you use to place buy and sell orders in the market. The Demat account is the ‘digital house’ where you safely store the shares you have bought, you need both to invest.   

    3. What happens to the shares in my Demat account if something happens to me? 

      Your Demat account comes with a nomination facility. You can appoint a nominee (like a family member) who will receive all the securities in your account in case of an unfortunate event. This ensures a smooth and easy transfer of your wealth.   

    4. Are shares safe with a discount broker? 

      Absolutely. Your shares are not held by Pocketful directly. They are held in your name with the central depository (CDSL), which is regulated by SEBI. This is true for all brokers, whether they are discount or full-service brokers.   

    5. Do I have to pay charges even if I don’t trade? 

      With many brokers, you have to pay the Annual Maintenance Charge (AMC) every year, even if you don’t trade at all. This is a key advantage with Pocketful, since our AMC is zero, you pay nothing if you are inactive. You only incur charges like DP charges when you actually sell shares.

  • Best Stock Market News Apps in India 2025

    Best Stock Market News Apps in India 2025

    The stock market is a vast financial ecosystem where thousands of companies list their shares. Some companies have well-established brands we encounter every day while others are emerging companies with innovative products and services. But how do investors stay updated on the latest market movements and company developments? That is where a stock market news app comes in. It delivers timely and reliable information to help you make informed investment decisions.

    With so much information available online it can be challenging to separate accurate news from rumors. In this blog, we will explore the top stock market news apps in India and their key features so that both trading and investing can become an informative and engaging experience for beginners as well as experienced investors.    

    Top 10 Stock Market News Apps in India

    An overview of the top 10 stock market news apps in India is given below:

    1. Pocketful

    Pocketful is a modern platform ideal for those starting their financial market journey. It combines a full trading platform with simple educational content, allowing users to learn and invest in one place without feeling overwhelmed. The app not only provides news and analysis but also allows you to invest directly in Stocks, ETFs, and IPOs. It is particularly beginner-friendly, offering zero account opening charges, zero AMC, and zero equity delivery charges.

     A standout feature of the mobile app is “Stocks in News”, which provides updates on stocks in your holdings, watchlists, results, IPOs, deals, global news, corporate actions, and markets. Additionally, Pocketful delivers corporate action updates via WhatsApp, including dividends, IPOs, and other important corporate actions. This makes Pocketful a convenient, low-risk platform for staying informed, learning, and making investment decisions efficiently.

    Pocketful features a blog section with easy-to-understand stock market information and a “Stocks-in-a-minute” video series that breaks down complex business news into concise insights. Together with the app’s social media posts, these features help educate users on market trends, investment strategies, and stock fundamentals in a quick and engaging way.

    2. Moneycontrol

    Moneycontrol is popular among Indian traders as it provides a comprehensive app and website that includes everything and comes with a whole lot of information. It covers everything from the BSE and NSE to commodities like gold and silver. You can track stocks, mutual funds, and currencies without switching apps. 

    Its best feature is the portfolio manager where you can plug in all your stocks and mutual funds and see how they’re performing, the app also sends alerts about your portfolio’s health. The app also has a “Text to Speech” feature that can read the news making it very convenient for the users. If you upgrade it to the pro version, you get an ad-free experience, news that’s specifically about your investments, and expert analysis.

    3. The Economic Times Markets

    The Economic Times (ET) is a name heard by many of us and the ET Markets app is a trusted app which gives us quality information from newspapers to our phones. The app’s biggest strength is its high-quality articles and expert opinions. You know the news you’re reading is well-researched and from a trusted source. It also has a portfolio management feature that helps you in managing your investments and monitoring performance of your shares and commodities. You can also save the articles and use them when you need even without the internet available at that time. The app also portrays financial information and news via slideshows and charts making it quick to grasp.      

    ET Prime’s pro version gives you access to exclusive, deeply researched stories that are unique in the market.

    4. Mint

    The Mint app is for people who appreciate a simple, minimalist design with easy-to-use features with global news coverage. The app’s best feature is its clear navigation, making it easy to find everything you need quickly.

    The app also has a “For You” section that shows content based on your interests and preferences, acting as a smart news assistant. You can get a quick overview of the Sensex, top-performing stocks, and trending topics in the financial market. It also offers business podcasts and a “Listen to News” feature, which is great for multitasking.

    Mint’s premium subscription provides unlimited premium articles, the digital version of the Mint newspaper, and special newsletters. If you are looking for a clean, easy-to-navigate app that covers both national and international financial news, Mint is an excellent choice.

    5. CNBC TV18

    This app is the digital version of the CNBC-TV18 channel making it perfect for people who would love to gather information online rather than watch the market action live on TV.   The main feature is the live stream of the channel as you get real-time information and analysis of the fluctuating market, during the day.   

    In this app you can customize it and set up alerts for breaking news or when a certain stock hits the price that you are looking for, keeping you updated without missing anything. Also there is a Live TV benefit where you can get the information from analyst and expert opinions. The Pro Version of the app is for advanced investors and business leaders which also gives a special access to events and journals.  

    6. NDTV Profit

    NDTV Profit has recently relaunched its app with modern tools and gives you a great balance between live news, deep-dive reports, and a user-friendly experience. The new app is fast, clean, and has new generation options like Dark and Light modes for comfortable reading day or night. It offers a great mix of articles, live TV streaming, and podcasts, so you can choose your source accordingly. 

    Users get access to free research reports and podcasts in this app which is generally chargeable by other financial apps. You can bookmark stories to read later and sign up for newsletters to get the important information sent straight to your inbox, but you need to pay for the pro version where you get the most exclusive stories and in-depth reports.

    7. Investing.com

    For investors who think beyond the Indian market, Investing.com is a data powerhouse as It is packed with serious tools for traders who need to know what’s happening everywhere. It gives you real-time data for over 1,00,000 things you can invest in, from stocks and bonds to commodities, across more than 70 global exchanges of the world.   

    It has some special features like an Economic Calendar that tracks big events like RBI announcements and an Earnings Calendar for company results, which is available for the pros use. You can even create a detailed portfolio by setting up alerts for almost anything in the financial market from its price change to a jump in volume, or a big economic event. The Pro version helps in removing unnecessary ads and gives traders an access to advanced tools, like what a stock’s “fair value” might be.   

    8. Zee Business

    Zee Business stands out by offering its content in both English and Hindi to its users. This is the biggest plus point of this app as it is a fantastic choice for the millions of Indians who prefer to get their news in Hindi and making the financial news accessible for a much wider audience. Unlike most news apps, Zee Business often gives direct buy and sell ideas from market experts, which some traders find very helpful. It covers everything from stocks and personal finance to technology and the economy. 

    The app automatically downloads news, so you can catch up on articles even when you’re in a place with bad internet. You get all the information in this app free of cost as its goal is to make financial news accessible to a wider audience. 

    9. StockEdge

    StockEdge is less of a news app and more of a powerful research tool for the traders. It’s built for investors who want to dig into the data and find opportunities for themselves.   

    The app is great for analyzing the after market effects and helps in giving you the news which you can analyse and get ready for your next day’s trading session. It has a huge library of scans that help you find stocks based on specific criteria. For example, you can find stocks where big institutions are investing more, or stocks that are showing specific chart patterns. 

    The app has learning modules and daily live sessions to teach you how to use its tools to become a better analyst. Users love that the app has no ads. It’s all about giving you knowledge and data, period. Although the pro version offers different subscription levels that unlock more advanced scans, research reports, and ready-made investment themes. It is best suitable for Data-driven investors and traders who like to do their own homework and analyze stocks based on numbers, not just headlines.

    10. Tickertape

    Tickertape is an app that has a modern platform that finds new stock ideas and analyzes your current portfolio and also it works seamlessly with brokers like Zerodha.   Its main feature is the screener where investors can filter thousands of stocks and mutual funds using hundreds of filters to find the ones that fit your style.   This app also has a unique Market Mood Indicator (MMI) that tells you if the market is currently bearish or bullish which can help the investors buying or selling decisions. You can even link your brokerage account to it, and Tickertape will give your portfolio a full analysis. It will point out risks, check if you’re well-diversified, and even give it a score.   

    It has pre-built screens based on popular investment ideas, like “Cash Rich Smallcaps” or “Momentum Monsters,” which are great for discovering new companies. The Pro version gives you more advanced filters, stock forecasts from analysts, and the ability to download data for your own analysis.  

    Read Also: Best Trading Apps in India

    Key Features of Stock Market News Apps in India

    • Live News: Features like live news, personalized category feeds and daily summaries give traders the important things that give them the required information on time.    
    • Constant Updates: For a trader, a few seconds can make a huge difference and they require real-time notifications and breaking news alerts to help them react instantly to breaking news.   
    • Diverse Usage: These apps aren’t just for reading the news; they’re tools that can genuinely help you become a smarter investor. How they help really depends on where you are in your journey.
    • Market Sentiment: Features like the forums on Moneycontrol or the Market Mood Indicator on Tickertape give you a sense of what the market is thinking. This “market sentiment” can be valuable for making the right decision. Also features of Pocketful like “Stocks in a minute”  and “Pockets” helps in getting ready for your next move. 

    Read Also: 10 Best Stock Market Simulators for Beginners – Platforms and Apps

    Conclusion

    After reviewing these apps, it is clear that there is no single “best” stock market news app. The ideal app depends on your individual needs, goals, and how you prefer to consume information. Some apps are better suited for beginners, while others cater to advanced traders and data-driven investors. Choosing the right platform can help you stay updated with live news, market trends, corporate actions, and expert insights, making both trading and investing more informed and effective. Ultimately, the best app is the one that fits your style, helps you learn, and supports your financial decision-making.

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    Frequently Asked Questions (FAQs)

    1. How do I decide which stocks or sectors to follow?

      A good starting point is to follow companies whose products or services you use regularly. Once comfortable, explore sectors that interest you. Focusing on familiar companies makes it easier to understand their performance and the news around them.

    2. Can I trust expert tips on these apps?

      Expert tips are useful for ideas, but the market can be unpredictable. Always verify information and make decisions based on research and your financial goals.

    3. Are these apps free to use?

      Most apps provide free news, alerts, and basic analysis. Some pro versions charge for advanced tools, expert insights, or ad-free experiences.

    4. Do I need to watch the market all day to invest successfully?

      Not necessarily. Day traders rely on constant updates, but long-term investors can focus on sector alerts, periodic news, and company updates without watching the markets all day.

    5. What are “corporate actions” and why do they matter?

      Corporate actions include dividends, stock splits, bonus issues, or buybacks. They affect stock value and your investment returns, so staying updated helps you make informed decisions.

  • What is Dividend ETF?

    What is Dividend ETF?

    In today’s market, investors seek not just growth but also steady income, making dividend investing increasingly popular. Among the options, Dividend ETFs (Exchange Traded Funds) stand out as a simple, transparent, and low-cost way to earn passive income. These funds invest in dividend-paying companies, offering diversification and regular payouts. 

    In this blog, we’ll explore their meaning, how they work, key benefits, risks, and strategies to help you decide if they fit your portfolio.

    Dividend ETF Meaning Explained

    An Exchange Traded Fund (ETF) is an investment fund that trades on the stock exchange just like individual shares. Instead of holding a single stock, an ETF consists of a basket of multiple stocks or other assets, giving investors instant diversification through one investment.

    Now let’s understand the meaning of the dividend ETF. This is an ETF that invests specifically in dividend-paying stocks. That is, it includes only those companies that regularly pay Dividend, due to which investors get the benefit of passive income.

    It is different from Dividend Mutual Funds because ETFs are usually low-cost, while mutual funds have higher expenses due to active management. At the same time, investing in individual dividend stocks has more risk and less diversity.

    Example: Suppose you buy shares of only one or two companies, then you will get a dividend from them only. But if you invest in a Dividend ETF, it invests in dozens of companies simultaneously and you get dividend income from multiple sources.

    How Dividend ETFs Work

    The working of a Dividend ETF is quite straightforward. These funds collect dividends from the companies they invest in and then distribute the money to investors. But there are some important steps behind this which are important to understand.

    1. Tracking the index : Every Dividend ETF tracks a dividend-focused index. These indices include only those companies which have a good and stable history of paying dividends. The ETF builds its portfolio according to that index.
    2. Portfolio management : The fund manager of the ETF ensures that the portfolio always remains in line with the index. This process is usually done through passive management, that is, there is not much active trading in it. This is why these funds are called low-cost dividend funds.
    3. Collecting and distributing dividends : When the companies included in the portfolio pay dividends, that money goes to the ETF. After this, investors get it in two ways:
    • Payout Mode: Dividend is transferred directly to your bank account.
    • Growth Mode: Dividend is reinvested in the fund, which increases the NAV and provides the benefit of compounding in the long term.

    Point to note : Keep in mind that Dividend ETFs do not guarantee fixed income. Dividend completely depends on the profits of the companies and their dividend policies. Because of this, your income may vary every year.

    Read Also: Best ETFs in India to Invest

    Why Consider Dividend ETFs for Passive Income?

    Investors often want their portfolio to provide not only growth but also regular income. This is why many people prefer dividend income investing. Dividend ETFs are becoming an option to meet this need in an easy and less expensive way.

    • Source of Steady Income : Dividend ETFs invest in companies that pay regular dividends. This gives investors cash flow from time to time. Although it is not guaranteed, it is still considered a reliable source for passive income.
    • Benefit of Diversification : If you buy shares of only 2–3 companies, the risk is high. But a Dividend ETF covers dozens of companies, which provides diversification in a single investment.
    • Cost Efficiency : Dividend ETFs are passively managed, so their expense ratio is very low. This is why they are called low-cost dividend funds, and they are cheaper than mutual funds.
    • Liquidity and Flexibility : ETFs can be bought and sold at any time during market hours like shares. This facility is useful for investors who need quick access to their funds.

    Key Factors Before Choosing a Dividend ETFs

    Before choosing a Dividend ETF, it is important to understand some important things. Often investors get attracted only by looking at high dividend yield, but to make the right decision, many other aspects should be taken into account.

    1. Dividend Yield vs Consistency : It is not right to invest only by looking at high yield. It is better that you choose those ETFs whose companies have a stable and reliable history of giving dividends.
    2. Underlying Index : Every Dividend ETF tracks an index. For example, Nifty Dividend Opportunities 50 is a popular index in India. The constituents of the index determine the performance of the ETF.
    3. Expense Ratio : The expense ratio of an ETF makes a huge difference in the long run. Choosing a low-cost dividend ETF is more beneficial for investors as it increases the net return.
    4. Liquidity : The trading volume of some Dividend ETFs in India is low. Low liquidity means there may be difficulty in buying and selling and spreads may also increase.

    Taxation : Dividend is now taxable as per your tax slab. On selling ETF:

    • Short-Term (STCG): 20% tax (if holding period < 1 year)
    • Long-Term (LTCG): 12.5% tax (if holding period > 1 year) only above ₹1.25 lakh gains per financial year

    Dividend ETFs vs Other Investment Options

    If you are thinking of investing to earn dividend income, you have several options: dividend stocks, dividend mutual funds, or dividend ETFs. But each option has its own benefits and limitations. The table below gives you a simple comparison:

    Investment OptionProsConsBest suited for
    Dividend StocksDirect ownership, high dividend can be obtainedConcentrated risk, research necessaryExperienced investors
    Dividend ETFsDiversification, low-cost dividend funds, easy tradingMarket risk, dividend payouts can fluctuateInvestors seeking passive income
    Dividend Mutual FundsProfessional management, SIP optionHigh expense ratio, active management feesBeginners 

    Strategies for Dividend Income Investing with ETFs

    • Holding for a long period : If you hold dividend ETFs for a long period, you get the benefit of continuous dividend income as well as capital growth. This method is especially good for those who do not want to trade frequently and want a steady passive income.
    • Reinvest dividends : By reinvesting dividends in ETFs instead of spending them, you accumulate more units.
    • Do not depend only on dividends : Holding only dividend ETFs can make your portfolio more defensive. Therefore, many investors balance them with growth ETFs so that capital appreciation is also received along with income.
    • Balanced Portfolio Approach : A sensible way is to include both dividend ETFs and broad-market ETFs in the portfolio. This maintains a good balance of stability and growth potential in the portfolio.

    Risks & Limitations of Dividend ETFs

    Dividend ETFs can provide stable returns over the long term, but they also come with some challenges that need to be considered before investing.

    • Impact of recession : In case of economic slowdown, companies can reduce or stop dividends, which affects the regular income of investors.
    • Lack of liquidity : Sometimes the trading volume in such ETFs is low, which can make buying and selling difficult and expensive.
    • Dependence on sectors : Most dividend ETFs include stocks from a few select sectors, which limits the diversification of the portfolio.
    • No guaranteed income : Dividend ETFs should not be relied upon for guaranteed returns or as an emergency fund, since their payouts depend entirely on market performance and company dividends.

    Conclusion

    Dividend ETFs are an excellent choice for investors seeking regular income. They offer a low-cost and convenient way to earn dividends from a diversified set of companies. However, it’s important to remember that market fluctuations and sector concentration can affect returns. Holding these ETFs long-term and reinvesting dividends can enhance growth, while careful selection and strategic investing are key to making the most of this option. It is advised to consult a financial advisor before investing.

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    Frequently Asked Questions (FAQs)

    1. What is a Dividend ETF?

      A Dividend ETF is a fund that invests in dividend paying companies. This gives you the opportunity to get regular income.

    2. How do Dividend ETFs work?

      Dividend ETFs use the funds collected from investors to invest in companies with a history of paying regular dividends. The ETF holds a diversified portfolio of these dividend-paying stocks, and the dividends received from the companies are then passed on to investors, either as direct payouts or reinvested to grow the fund.

    3. Are Dividend ETFs Safe?

      Dividend ETFs are not completely risk-free. Their returns can fluctuate based on market conditions and the financial performance of the underlying companies, so investors may experience variations in both dividends and overall investment value.

    4. Can Dividend ETFs give passive income?

      Yes, if kept for a long time, it can become a good source of passive income through regular dividends.

    5. What should I check before investing in a Dividend ETF?

      Before investing, it is important to look at the dividend record, expense ratio of the fund, trading volumes and the underlying index.

  • What is an ITM (In The Money) Call Option? 

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

    Let’s forget about the stock market for a minute and talk about something simple like  buying land. Suppose you find a piece of land for sale at Rs.5,00,000 and you’ve heard whispers that a new highway might be built nearby, which would cause the land’s value to skyrocket. But what if it’s just a rumour, you don’t want to be stuck with land that doesn’t increase in value.

    So, you go to the landowner with a proposal. You offer to pay him a non-refundable fee of Rs.1,00,000 today. In exchange, he gives you the right but not the requirement to buy that land for Rs.5,00,000 at any point in the next six months.

    If the highway gets announced and the land’s price jumps to Rs.10,00,000, you can use your right, buy the land for the agreed upon Rs.5,00,000, and you’ve made a brilliant deal. If the rumour turns out to be false, you can just walk away. The only thing you lose is the fee you paid, which is a much smaller loss than buying overpriced land. This is the core idea of a “call option.” Now, let’s see how the call option is used in the stock market. 

    What is an ITM Call Option?

    Call Option is a contract which  gives you the right, but doesn’t force you, to buy a stock at a fixed price (we call this the strike price) before a certain date known as the expiry date. The “ITM” part simply means “In The Money”,  an ITM call option is one where the stock’s current price in the market is already higher than your fixed buying price, here the deal is already looking good for you on paper. It has a built-in advantage from the start. Getting a handle on ITM options is all about understanding this head start.   

    Important terminologies 

    • Underlying Asset: This is the actual stock you’re dealing with (like shares of Reliance or Infosys).   
    • Strike Price: This is the price you’ve locked in and it won’t change your contract.
    • Spot Price: This is the live market price of the stock, the one you see on your trading platform.
    • Expiry Date: This is the last day your contract is valid. After this, your right disappears.   

    The relationship between the spot price and strike price tells us everything.

    Option StateCondition for a Call OptionWhat It Really Means
    In The Money (ITM)Spot Price > Strike PriceYour right to buy is already in a profitable position.
    At The Money (ATM)Spot Price = Strike PriceIt’s a tie. No advantage either way.
    Out of The Money (OTM)Spot Price < Strike PriceUsing your right would mean buying for more than the market price.

    The Two Parts of an Option’s Price

    When you buy an option, the price you pay is called the premium. Think of this premium as having two components, especially for an ITM option.   

    1. Intrinsic Value

    This is the solid, tangible value that’s already put into the option. It’s the amount by which your option is already “in the money.” You can figure it out with some simple math 

    • Intrinsic Value = Spot Price − Strike Price

    So, if a stock is trading at Rs.110 and your call option has a strike price of Rs.100, its intrinsic value is Rs.10 this is a real, measurable advantage. Only ITM options have this kind of value for the others, it’s zero.   

    2. Time Value

    This is the extra bit you pay for the chance that the stock will climb even higher before your time runs out. It’s the value of potential. The more time you have until the expiry date, the more hope there is, and the higher this time value will be.   

    Think of time value like a melting ice cube. Every single day, a little bit of it disappears, this process is known as “time decay,” gets faster and faster as you get closer to the expiry date.   

    So, when you buy an ITM option, you’re paying for both a real advantage (intrinsic value) and the potential for more (time value). This is why they’re more costly than OTM options, which are made up of nothing but hope.   

    How Does ITM Work?

    Say you have an optimistic feeling about a company called “Bharat Motors,” currently trading at Rs.520.

    • Your Move: You decide to buy an ITM call option with a Strike Price of Rs.500.
    • The Cost (Premium): The seller is asking for Rs.30 per share for this right.
    • Total Bill: In India, options trade in “lots.” If the lot size is 100 shares, your total cost is Rs.3,000 (Rs.30 x 100). This is the absolute most you can lose on this trade, no matter what happens.   

    After a few weeks you notice that your gut feeling was right and the stock has shot up to Rs.560.

    Most traders don’t actually buy the shares, they just sell the option contract, which is now worth a lot more. But to see the profit clearly, let’s calculate it:

    • Paper Profit: (Current Price – Your Locked-in Price) x Shares = (Rs.560 – Rs.500) x 100 = Rs.6,000.
    • Real Profit: Paper Profit – What You Paid = Rs.6,000 – Rs.3,000 = Rs.3,000.

    But here’s the actual point, the breakeven point. This is the price the stock needs to hit for you to actually start making money, after covering your initial cost.

     Breakeven Point = Strike Price + Premium Paid = Rs.500 + Rs.30 = Rs.530.   

    Since the stock hit Rs.560, you were well past the breakeven point and comfortably in profit.

    Read Also: Difference Between ITM, OTM, ATM in Call and Put Options

    Things to consider before starting

    • Buying a call option is a purely a bullish move. You’re betting the stock will go up. An ITM call is for when you’re not just hopeful, but reasonably confident that the stock has the strength to climb past your breakeven point.   
    • All options trading has risks, but ITM calls are often seen as one of the “safer” options in the stock market because the intrinsic value we talked about acts like a small cushion. If the stock stumbles a bit, your option might still be worth something, whereas an OTM option would likely be wiped out.   
    • Time decay is always working against you. You need to give time to your prediction to come true. If you think a stock will rise over the next few months, buying an option that expires next week is setting yourself up for failure.   

    Advantages of ITM Call Option

    • Potential gains: Because you start with a built-in advantage (intrinsic value), you don’t need a massive price jump to end up with a profitable trade.
    • Movement similarity: ITM options have something called a high “Delta.” All this means is that if the stock goes up by Rs.1, your option’s price will also go up by almost Rs.1. This makes its movement feel more predictable.
    • Safety feature: That intrinsic value acts as a buffer. If the stock price dips, it might not wipe out your entire investment, which is the real risk with other types of options.
    • Less day to day impact: Since a big chunk of the option’s price is solid value, the daily melt of time decay has a smaller percentage impact on your investment.

    Disadvantages of ITM Call Option

    • Expensive: This is the main drawback, you’re paying a premium for that safety and head start, so the entry ticket is much pricier.
    • Lower Bang for Your Buck: Because your initial investment is high, the percentage returns can seem less dramatic. You might make a good profit, but you won’t see the explosive 500% gains that sometimes happen with riskier, cheaper options.
    • More Cash Required: The high cost means you need more capital in your account to get started, which can be a hurdle for many.   
    • Higher Rupee Risk: While your chance of losing everything is lower, the amount of money you could lose is higher. A total loss on a Rs.3,000 option hurts more than a total loss on a Rs.500 one.

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

    Conclusion 

    An In-The-Money call option is a tool for a specific job. It’s for someone who believes a stock will rise and wants a better chance of being right, and is willing to pay for that increased probability. It’s a more conservative way to enter the bullish game.

    But it’s not an easy game, it’s expensive, and you still need the stock to perform well to make a profit. Ultimately, there’s no “best” option in the financial market, only the one that’s best for your strategy, your budget, and your comfort with risk. The smartest investment you can make is in increasing your overall knowledge. 

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    Frequently Asked Questions (FAQs)

    1. Is ITM and OTM call options different and how?

      An ITM call is like buying a ticket to a concert that’s already a hit, though it’s more expensive, but you’re pretty sure you’re in for a good show. An OTM call is like buying a ticket to a brand new band’s first show, it’s cheap, but it’s a total gamble on whether they’ll be good or bad. 

    2. Can investors get guaranteed profits in the ITM call option? 

      It is a huge myth, investors still have to overcome the premium you paid. If the stock price doesn’t rise enough to cover your initial cost, you will lose money, even if the option is “in the money.”   

    3. Why does ITM call options cost more?

      It is high because you’re paying for two things, the profit that’s already built-in (intrinsic value) and the potential for even more profit (time value). Cheaper options only have the “potential” part, which makes them a riskier bet.   

    4. Is it necessary to buy shares if I have an ITM call option?

      Nope. You have the right, but you’re not forced to. In India, almost all traders simply sell the valuable option contract back to the market to cash in their profit or loss. It’s simpler and you don’t need the huge amount of cash required to actually buy the shares.   

    5. Can beginners use ITM options? 

      On one hand, they are less likely to expire worthless and their price moves more predictably, which can be comforting for a beginner. On the other hand, they cost more, so a mistake can be more expensive. The best advice for any beginner is to learn, learn, and learn some more before putting real money on the line.

  • Best Speciality Chemicals Companies Stocks in India

    Best Speciality Chemicals Companies Stocks in India

    Over the past few years, you’ve likely heard about the rapid growth of India’s specialty chemical companies. These are the companies that manufacture specialized chemicals used in everything from pharmaceuticals to agricultural products, textiles, and FMCG. Due to rising global demand and the China+1 strategy, their exports are also reaching record levels. This is why many investors today view chemical stocks as a good opportunity to build long-term wealth, especially when it comes to specialty chemical companies in India.

    What are Chemical Stocks?

    Chemical stocks are stocks linked to companies that produce in the chemical industry, particularly commodity chemicals, agrochemicals, pharma intermediates, and more technical or niche specialty chemicals. For example, fertilizers and petrochemicals are bulk chemical stocks, while personal care ingredients, electronic chemicals, or high-purity intermediates fall under the specialty category.

    Why are these stocks important?

    • They serve as the backbone for various end-user industries such as pharma, textiles, autos, FMCG, etc.
    • Exports of specialty chemical companies in India are growing; shifts in global supply chains (China+1) are providing opportunities for India.
    • These stocks often offer good margins because specialty segments have less competition, greater technical expertise, and strength.

    Read Also: List of Best Chemical Stocks in India

    Best Specialty Chemicals Companies Stocks in India

    S.NoCompanyCurrent Market Price (INR)Market Capitalisation (in INR crore)52-Week High52-Week Low
    1SRF Ltd₹ 2,839₹ 84,167 ₹ 3,325₹ 2,127
    2UPL Ltd₹ 656₹ 55,292 ₹ 741₹ 484
    3P I Industries Ltd₹ 3,503₹ 53,142 ₹ 4,759 ₹ 2,951
    4Sumitomo Chemical India Ltd₹ 544₹ 27,176 ₹ 665 ₹ 446
    5Deepak Nitrite Ltd₹ 1,840₹ 25,096 ₹ 3,012 ₹ 1,733
    6Atul Ltd₹ 6,049₹ 17,810 ₹ 8,180₹ 4,752
    7Aarti Industries Ltd₹ 373₹ 13,536 ₹ 594₹ 344
    8Anupam Rasayan India Ltd₹ 1,094₹ 12,449 ₹ 1,197 ₹ 601
    9Balaji Amines Ltd₹ 1,428₹ 4,627 ₹ 2,374 ₹ 1,112
    10Aether Industries Ltd₹ 732₹ 9,706 ₹ 978 ₹ 725
    (Data as of 26 Sep 2025)

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

    1. SRF

    SRF started in 1970 with a textile unit. At that time hardly anyone would have imagined that this company would later become such a big name in the world of specialty chemicals. Gradually it expanded its scope and today it works in many segments like fluorochemicals, packaging films and specialty chemicals. SRF’s specialty chemicals are used in making medicines and agrochemicals required for agriculture. The special thing is that the company continuously works on new products and solutions, so that it can meet the needs of the industries with changing times. Due to its diversification and strong brand value, SRF has now become a trusted name in the chemical sector not only in India but also in many countries of the world.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    15.26%12.70%246.87%
    (Data as of 26 Sep 2025)

    2. UPL Ltd

    The story of UPL began in 1969, when it was known as United Phosphorus Limited. At that time, the company’s objective was simple – to provide farmers with products that could protect their crops from pests and diseases. Gradually, it expanded its range and today it is not limited to just crop protection. From seeds, biosolutions and specialty chemicals, UPL now offers solutions for every aspect of farming. Most interestingly, the company has created its “OpenAg” vision, through which it aims to make farming more sustainable and accessible to everyone. Today, UPL is active in around 130 countries and has made its mark in the global agrochemical industry by providing modern, practical and eco-friendly solutions to farmers.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    8.70%-3.90%29.48%
    (Data as of 26 Sep 2025)

    3. PI Industries Ltd 

    PI Industries was founded in 1946. At that time, it solely traded agrochemicals. Gradually, the company began manufacturing its own products and today it is known as a research-based agrochemical firm. PI’s focus is on new molecules and crop protection solutions. It works closely with global innovators to provide modern solutions to farmers. This is why PI has gained recognition not only in India but also in the international market.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -24.31%16.29%82.83%
    (Data as of 26 Sep 2025)

    4. Sumitomo Chemical India Ltd

    Sumitomo Chemical India is a part of Sumitomo Chemical Company of Japan. It began in India by providing crop protection products to farmers. Today, the company manufactures solutions such as insecticides, herbicides, fungicides, and plant growth regulators. Sumitomo’s mission is to make farming more productive and sustainable. Its specialty is its ability to combine advanced Japanese research with Indian needs. This is why it has gradually become a trusted name in the Indian agrochemical sector.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -0.68%9.28%84.99%
    (Data as of 26 Sep 2025)

    5. Deepak Nitrite Ltd

    Deepak Nitrite was founded in 1970. Initially, it manufactured basic chemicals, but gradually expanded into specialty chemicals and performance products. Its chemicals are used in the dyes, pharmaceutical, agrochemical, and petrochemical industries. Deepak Nitrite’s most significant strength is its diversification to meet the needs of various industries. It has achieved leadership in India in products such as Phenol and Acetone. The company has consistently expanded its capabilities by anticipating demand, making it a trusted name in the chemical sector.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -34.72%-11.83%129.73%
    (Data as of 26 Sep 2025)

    6. Atul Ltd

    Atul Ltd was founded in 1947, just after independence. It was started by renowned industrialist Kasturbhai Lalbhai. The company initially manufactured dyes and agrochemicals, but over time, it expanded its reach to polymers, aromatics, pharmaceuticals, and intermediates. Atul Ltd’s specialty is that it serves a wide variety of industries, from agriculture to textiles and healthcare. With decades of reliable quality and a diversified portfolio, Atul Ltd has consistently been a leading company in the list of specialty chemical companies in India.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -19.88%-34.85%2.49%
    (Data as of 26 Sep 2025)

    7. Aarti Industries Ltd

    Aarti Industries Ltd was founded in 1984 and today is a major name in the specialty chemicals segment. The company began by manufacturing dyes and intermediates, but has now expanded its scope to pharmaceuticals, agrochemicals, polymers, and pigments. Aarti Industries manufactures custom-made specialty chemicals tailored to specific customer needs. The company has placed a strong focus on backward integration and research, which has led to long-term relationships with global clients. Aarti Industries has always been considered a strong and trusted name when it comes to specialty chemical companies in India.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -36.19%-56.09%-26.71%
    (Data as of 26 Sep 2025)

    8. Anupam Rasayan India Ltd

    Anupam Rasayan was founded in 1984. I remember first hearing that the company manufactured intermediates used in post-wash dyes; those tiny chemical components that lurk in everyday items. But today, Anupam isn’t just limited to dyes. It also supplies specialty chemicals to the personal care, pharmaceutical, and agrochemical industries. Long-term contracts with customers prove the company’s earned trust. And yes, it’s also somewhat environmentally conscious using safer and cleaner methods in its production processes.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    46.94%44.17%109.67%
    (Data as of 26 Sep 2025)

    9. Balaji Amines Ltd

    The story of Balaji Amines began in 1988. Sometimes it’s hard to imagine how a chemical used in just a few reactions can become so important. Balaji Amines produces amines and their derivatives, which play a vital role in pharmaceuticals, agrochemicals, rubber, and more. The company has learned that consistency is crucial, trust cannot be built without timely production and good quality. Whether it’s with small or large customers, Balaji has made its mark because it approaches its work intelligently.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -37.86%-59.36%74.42%
    (Data as of 26 Sep 2025)

    10. Aether Industries Ltd

    Aether Industries is new, but speaks with the confidence of companies with decades of experience. Started in 2013, this company grew through small steps. I suspect it experimented extensively in its early days—with new molecules, new processes, and new demands. Today, it produces specialty chemicals that aren’t just commodities being developed in industries like pharma, agriculture, and advanced materials. And it’s good that Aether recognizes that growth isn’t just about increasing production, but also about responsibility and environmental awareness.

    Know the Returns: 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -22.96%-21.86%3.96%
    (Data as of 26 Sep 2025)

    Why Invest in Specialty Chemical Companies?

    1. Boosting Global Demand : Today, the demand for specialty chemicals is increasing worldwide. Due to the China+1 strategy, global companies are now turning to India. Indian companies are directly benefiting from this.
    2. High Value, High Margin Products : Specialty chemicals are produced on a small scale but have high value. They are used in industries such as pharmaceuticals, agrochemicals, personal care, and packaging. This results in good margins.
    3. Strong Customer Relationships : Manufacturing these products requires lengthy approvals and technical expertise. Therefore, companies that establish a strong customer relationship often enjoy stable contracts for years.
    4. Government Support : The Indian government has launched schemes such as the Production Linked Incentive (PLI) to promote this sector. This is helping to create new capacity and increase exports.
    5. Diversification Across Industries : Specialty chemical companies are not dependent on a single industry. Their products are used in a variety of industries, from agriculture to healthcare, FMCG, and textiles. This reduces the risk somewhat.

    Read Also: 10 Best Agro Chemicals Sector Stocks

    Key Performance Indicators (KPIs)

    The key performance metrics of the Best Specialty Chemicals Stocks in India are mentioned below:

    CompanyOperating Margin (%)Net Profit Margin (%)ROE (%)ROCE (%)Debt to Equity
    SRF Ltd14.158.519.9012.890.37
    UPL Ltd11.442.773.078.970.81
    P I Industries Ltd27.2020.7516.3420.570.01
    Sumitomo Chemical India Ltd21.7916.0817.4222.870.00
    Deepak Nitrite Ltd11.838.4212.9314.420.22
    Atul Ltd12.628.738.6411.520.04
    Aarti Industries Ltd7.984.555.907.580.68
    Anupam Rasayan India Ltd20.958.112.595.910.45
    Balaji Amines Ltd15.5211.358.5310.220.01
    Aether Industries Ltd28.7819.286.839.910.05
    (Data as of 26 Sep 2025)

    Read Also: Best Cloud Computing Stocks in India

    Key Factors to Analyze Before Investing Chemical Companies

    When selecting specialty chemical stocks, it’s important to keep a few basic considerations in mind. These factors will help you understand the company’s true strengths and future potential.

    1. Company’s Core Business : First, consider whether the company focuses more on specialty chemicals or bulk/commodity products. Companies focused on specialty products typically have stable, high-margin businesses.
    2. Growth Track Record : Look at the company’s growth over the past few years. Consistent orders and steady expansion indicate strong demand and a sustainable business.
    3. Profit Quality : Just looking at profits isn’t enough. It’s important to understand how efficiently the company is using resources. Stable margins and healthy return ratios indicate good operational strength.
    4. Global Market Capability : Today, the growth of specialty chemical companies in India is largely dependent on exports. Companies with a strong presence with international clients and diversified markets are considered stronger.
    5. Research and Innovation : The true strength of this sector lies in research. Companies that work on new molecules and sustainable technologies will continue to thrive in the future.

    Risks & Challenges in the Sector

    Specialty chemical companies have a strong growth story, but like every sector, they also face challenges. If you’re considering investing in chemical stocks, these risks are difficult to ignore.

    1. Raw Material Dependency : Most specialty chemicals are based on crude oil or natural gas derivatives. Fluctuations in global crude prices directly impact margins.
    2. Environmental Regulations : Producing chemicals is not an easy task. Pollution control norms and safety standards are very strict. If a company fails to meet them, production may be halted.
    3. Global Competition : India benefits from the China+1 strategy, but competition is also global. It has to compete with Chinese, European, and American companies on both price and technology.
    4. High Valuations : Specialty chemical companies often receive high valuations based on the promise of “future growth.” This means that if performance falls short of expectations, the stock price could fall sharply.
    5. Customer Concentration Risk : Sometimes, a large portion of a company’s revenue is based on a limited number of customers. Breaking those contracts could have a significant impact on the business.

    Read Also: List of Best Fertilizer Stocks in India

    Conclusion

    India’s specialty chemical companies have proven over the past few years that they are not just a sector, but an engine of long-term growth. Whether it’s agrochemicals, pharmaceuticals, or daily-use products, their role is evident everywhere. For investors, this is a space where patience and choosing the right company can yield good compounding returns. But like every investment, there are risks, so don’t jump into it without research. Only thoughtful investments can create the right chemistry in chemical stocks.

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    Frequently Asked Questions (FAQs)

    1. What are specialty chemical companies in India?

      These are companies that manufacture chemicals for specific purposes, such as in medicine or agriculture.

    2. Are chemical stocks good for beginners?

      Yes, but you should start slowly and after thorough research.

    3. How to identify top specialty chemical companies in India?

      Look at the industry the company serves, its R&D focus, and its exposure to global demand.

    4. Why are specialty chemical companies in India growing fast?

      Because exports are increasing and India is benefiting from the China+1 strategy.

    5. What risks should investors consider in chemical stocks?

      The main risks are raw material prices and environmental regulations.

  • Top AI Trading Apps in India

    Top AI Trading Apps in India

    The trading landscape in India is undergoing a major transformation. In August 2025, the number of demat accounts crossed 20 crore, highlighting the rapid rise of retail traders entering the markets through mobile platforms. With this massive participation, the demand for smarter, faster, and data-driven tools has skyrocketed. AI trading apps are now playing a crucial role by providing real-time signals, predictive insights, and strategy support to help traders stay ahead.

    In this blog, we’ll explore the top AI trading apps in India and how they’re shaping modern trading.

    What is AI Trading?

    AI trading means making trading decisions in the stock market with the help of artificial intelligence and machine learning. This technology identifies patterns in the live markets by simultaneously reading millions of data points such as price movement, trading volume, news sentiment and global trends.

    The job of AI trading apps is to provide investors with tools like real-time signals, automated strategies, and portfolio optimization. The biggest advantage is that decisions are driven by data and analytics, not just emotions or guesswork. With features such as pattern recognition, predictive insights, and instant alerts, these apps help traders act faster and with more confidence. That’s why terms like AI trading apps India are gaining massive popularity among today’s new-age market participants.

    Top AI Trading App in India

    App NameAI Features 
    Pocketful Alpha AISmart AI that analyzes portfolios, researches markets, and designs strategies.
    Zerodha Kite MCPPortfolio review, Analysing F&O positions, Stock analysis, Portfolio insights
    Upstox AIAI-assisted insights, predictive analytics
    5Paisa MCPAI Trading Assistant Natural language queries, backtesting, P&L insights
    SmallcaseAI-curated theme-based portfolio, auto rebalance, quant strategies
    Jarvis InvestAI-based risk management, stock alerts, AI-powered stock selection, and personalized portfolio planning
    Sahi AIAI Market Scanners Buzzing Stocks, OI Shifts, Auto trailing stop loss

    Overview of Top AI Trading App in India 

    1. Pocketful Alpha AI

    Pocketful’s Alpha AI is built on MCP (Model Context Protocol), a secure system that connects your Pocketful account directly to AI assistants and IDE clients. Instead of generic tips, it delivers clear, portfolio-specific answers based on your live account data and market conditions. Setup is quick and works seamlessly with popular AI clients, allowing traders to simply ask questions in natural language and get instant insights. From tracking holdings to running backtests, Alpha AI turns complex data into actionable signals.

    Key Features

    • Real-time data access: Live market prices and account information are readily available.
    • Personalized insights: Actionable suggestions tailored to your portfolio, not general advice.
    • Natural-language interaction: Ask questions in plain language and request reports or alerts.
    • Interactive capabilities: Not just answers, but accurate information (e.g., holding lists, performance).
    • Research and strategy tools: Setting up GTT, backtests, custom indicators, and real-time stock data.
    • Account Information: View available margin, unrealized P&L, holdings, etc.

    Pros

    • Get portfolio-focused recommendations, no generic reports.
    • Compatibility with multiple AI clients (Claude, Cursor, Windsurf, VS Code, etc.).
    • The natural-language interface allows for easy queries even for non-technical users.

    Cons

    • Permissions are required for account connection; a consideration for privacy-sensitive users.
    • Some client/IDE integrations may require technical configuration.
    • Some active auto-actions (direct order execution) may depend on the broker’s execution flow.

    2. Zerodha – Kite MCP

    Kite MCP (Model Context Protocol) is a new feature from Zerodha that connects your account directly to AI assistants (such as Cloud, Cursor, Windsurf, VS Code). Its purpose is to provide AI insights with not just general market information, but also accurate answers based on your actual portfolio and live data. It’s completely free and easy to set up. Users can ask questions in simple language and instantly receive portfolio-specific insights.

    Key Features

    • Real-time data access: Instantly view holdings, live prices, P&L, and account information.
    • Personalized insights: Recommendations and analysis tailored to your portfolio.
    • Natural-language interaction: Ask questions in simple language and receive clear answers.
    • Interactive capabilities: Can pull information such as holding lists, performance, and sector exposure.

    Pros

    • Portfolio-focused answers and recommendations based on real data.
    • Easily connects with multiple AI clients (Claude, Cursor, Windsurf, VS Code, etc.).
    • Extremely easy to use with language-based question-answers.
    • Data is always live and secure.

    Cons

    • Not all information is available right now, such as the full order history.
    • Conversation limits may be reached quickly with large portfolios.
    • Direct order placement is not supported on the default hosted server for security reasons. Users need to set up their own local server with API keys to access this functionality.

    3. Upstox AI

    Upstox has announced the launch of new AI-enabled components called “Upstox AI,” including Option Chain, OI Analysis, Charts, Holdings, Futures Heat Map, and Trading Insights. These tools are designed to help you understand the markets by combining data, technical indicators, and market news.

    Key Features

    • Information such as Option Chain and Open Interest (OI) will now be available in an AI-enhanced form, making it easier to understand which stocks or options may have potential opportunities.
    • New visual data and AI-interpretation in Charts and Holdings will help investors see trends.
    • Features like the Futures Heat Map show which way the market is trending—which sectors are bullish, where there is pressure.
    • Trading Insights: Get signals based on market news and technical indicators to help you make informed trading decisions.

    Pros

    • Gains up-to-date market information, helping to understand the story behind the data.
    • Technical and options traders will gain analytical tools previously only available to experts.
    • Visual data and charts provide a fresh perspective, making trading decisions faster and more informed.

    Cons

    • These features are still in their early stages; not everything is fully developed.
    • There are some limitations to the “chat-like input prompts” and you can’t type completely freely.
    • Features like order placement or live trading automation are not yet clear.

    4. 5Paisa MCP

    5Paisa has introduced a feature called MCP (AI Trading Companion), which makes trading and portfolio management much easier. The MCP connects your 5Paisa account to an AI assistant via a cloud model. You can simply ask questions like “How is my portfolio doing?”, “Show me my P&L for the last 3 months,” or “Do a backtest for this stock” and the MCP will instantly pull up the necessary information. Secure connection is via API credentials and TOTP, and your privacy is maintained with data encryption.

    Key Features

    • Instant access to live market data and portfolio holdings.
    • Place orders, view P&L, or backtest using natural language conversations.
    • Backtesting is done without coding, just by prompting.
    • Secure API + TOTP-based login; credentials remain on your device.
    • Works on most operating systems (Windows, Mac, Linux); Web/desktop interface.

    Pros

    • Easy to use even for non-technical users as no coding is required.
    • Portfolio-specific insights are available not just general market tips.
    • Data security is good; encryption and user control are available.
    • MCP is free to use if you are a 5Paisa customer.

    Cons

    • Order placement may have some limitations; not all order types or broker-features may be supported.
    • Users with large portfolios may sometimes experience limitations in data headers or conversation length.
    • Natural language responses may sometimes not provide complete details of the order book or holdings.

    5. Smallcase

    InvestorAi is a SEBI-accredited research analyst that uses quantitative algorithms and machine learning models to provide investors with in-depth insights. The idea is to create data-driven smallcases tailored to different investment styles and themes, rather than relying solely on market news.

    Key Features

    • Analyzing millions of data points daily, using AI to create strategies (Quant, Momentum, Value, etc.).
    • Smallcases across different themes Growth, Quality, Sector Trackers, Growth + Momentum, etc.
    • Ability to balance portfolios: a mix of historically low-risk stocks and sector-diversified stocks.
    • Regular rebalancing: The portfolio is updated quarterly.

    Pros

    • Investment recommendations are designed to minimize risk while maintaining the potential for good returns.
    • Investing across various strategies is possible if both short-term and long-term smallcases are available.
    • The interface is simple; everything on the smallcase platform feels intuitive.

    Cons

    • Each smallcase incurs a separate fee; not all smallcases are free.
    • Market volatility can impact returns from time to time.
    • Diversification and tracking can be a bit complicated if the portfolio is large.

    6. Jarvis Invest

    Jarvis Invest is a platform that provides AI-powered investment advice that doesn’t just provide suggestions, but also understands your portfolio needs. It helps you identify stocks and investment strategies that match your time horizon (short-term or long-term), risk tolerance, and market conditions. Jarvis Invest’s AI engine crunches millions of data points daily, along with news, technical, and fundamental analysis, to provide you with accurate alerts and protect you from potential pitfalls.

    Key Features

    • 1-5 stock recommendations per week, specifically for short-term traders.
    • Personalized portfolio plan based on your goals and risk profile.
    • Identification of risky stocks within existing holdings.
    • AI-based alerts that track market and news.

    Pros

    • Fully personalized recommendations.
    • Timely alerts reduce risk.
    • Useful for both short-term and long-term investors.

    Cons

    • Auto-trading functionality depends on integration with a partner broker and may not be a standard feature for all users.
    • Suggestions can sometimes be delayed for large portfolios.
    • New users need to learn initially.

    7. Sahi – AI

    The AI ​​features in the Sahi trading app are specifically designed for active traders. The AI ​​goes beyond simply displaying charts, but also scans the market in real-time and identifies stocks experiencing unusual movement. Information such as Buzzing Stocks, Trend Breakers, and Open Interest (OI) Shifts are provided through AI-powered insights. This allows traders to quickly identify opportunities or risks.

    Key Features 

    • AI-powered Market Scanners Identifies unusual volume, breakouts, and trend reversals.
    • Buzzing Stocks Alerts Shows which stocks are active in real-time.
    • OI Shifts & Derivative Insights Provides data-driven signals in options and futures.
    • Auto Trailing Stop Loss Automatically adjusts stop loss based on market movements.

    Pros

    • Real-time and data-based predictions of market movements.
    • AI insights provide traders with immediate, actionable signals.
    • Features like Buzzing Stocks and OI shifts are very helpful in active trading.

    Cons

    • AI insights are guiding, but may not be 100% accurate all the time.
    • It may take some time for beginners to understand AI alerts and read the data.
    • Trading solely on AI signals can be risky; manual checks are essential.

    Read Also: Best Trading Apps in India

    • Wave of mobile-first investors : The way of investing and trading in India has completely changed since COVID. Today most people are participating in the stock market directly from their mobile apps. This is the reason why every new trading app has added an average of about 3–4 lakh new demat accounts in recent years. Easy to use interface and the facility to trade from anywhere has further accelerated this trend.
    • Combination of Fintech and AI : India is currently one of the fastest countries in adopting AI in the world. According to reports, the AI ​​market in India can reach around $8 billion by 2025. This is the reason why big brokers like Pocketful, Zerodha, etc. are constantly adding AI and machine learning based features to their platforms to give a smarter experience to investors.
    • Retail investors are getting benefits : Where earlier advanced data and strategies were only available to large institutional investors, now the same facilities are reaching small retail investors as well. AI trading apps offer real-time market analysis, emotion-free signals, and advanced strategies that enable investors to make quicker and better decisions.
    • Traditional vs AI-enabled trading : In traditional trading, people mostly relied on charts and guesswork. But today AI-enabled apps are making trading much smarter by providing features like data-driven suggestions, portfolio optimization, and strategy builder. This is the reason why new-age investors are preferring to adopt tools like “AI trading app India”.

    Key Factors to Consider Before Choosing an AI Trading App

    • How reliable is the AI ​​model : The real strength of any AI trading app is its model. It is easy to show good results of backtesting, but it is important that the app gives the right signals even when the market suddenly falls or there is high volatility. So always check whether the app offers an opportunity for trial or demo use.
    • Whether it is compatible with your broker : Not every AI trading app works with all brokers. For example, if you have an account with Zerodha or Upstox, you need to ensure that the app integrates smoothly with your platform. Proper integration ensures a seamless trading experience, allowing you to access real-time data, execute strategies, and manage your trades without delays or technical issues.
    • It should be easy to use : A good app is one that even a new investor can easily understand and an expert also finds comfortable. Clean interface, easy navigation and clear options all determine how quickly and confidently you take decisions while trading.
    • How much will it cost : Many apps offer basic features for free but a subscription has to be taken for advanced tools. Some also have separate transaction charges. So before choosing an app, get a clear idea of ​​the total cost so that you don’t get any surprises later.
    • Compliance with SEBI rules : SEBI has laid down several guidelines for AI and algo trading such as two-factor authentication, data security, and a “kill-switch” if needed. Only those apps are safe that follow these rules and remain transparent to investors.
    • How transparent is AI : Just getting a signal is not enough, it is also important to understand why the AI ​​gave that signal. If the app clearly explains the logic and data source, then investor confidence increases. It is better to be cautious of black-box apps.

    Read Also: 10 Best Stock Market Simulators for Beginners – Platforms and Apps

    Conclusion

    AI trading apps are rapidly transforming how Indian retail traders operate. They go beyond simply displaying data by offering real-time market insights, predictive analytics, and automated strategy support to help traders act faster and more confidently. However, it is important to remember that AI is an assistant, not a replacement for judgment. Final decisions still depend on the trader’s skills, strategy, and risk appetite. Using AI wisely alongside personal research and consulting a financial advisor when needed can help minimize risks and make trading more informed.

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    Frequently Asked Questions (FAQs)

    1. Which is the best AI trading app in India?

      Pocketful and Zerodha are currently considered the best options when it comes to AI trading apps.

    2. Are AI investing and trading apps safe to use?

      Yes, you are safe if you choose SEBI-regulated apps.

    3. Can AI apps guarantee profits in trading?

      No, they do not guarantee profits, but just help in making better decisions.

    4. Do I need coding skills for AI trading apps?

      No, most apps are no-code and can be used easily.

    5. Are AI trading apps good for beginners?

      Yes, their interface is easy and helps beginners to learn.

  • PhysicsWallah Company Case Study: Growth, Strategy & Financials

    PhysicsWallah Company Case Study: Growth, Strategy & Financials

    PhysicsWallah is an Indian EdTech company started by Alakh Pandey in 2016 with a YouTube channel. Over the years, it has grown into a unicorn startup by combining strong content, a student-first approach, and an innovative hybrid learning model. The company has thrived in a competitive market through its innovative business model and marketing strategies.

    In this blog, we will understand its business model, marketing strategy, financials performance and SWOT analysis of PhysicsWallah Company in detail.

    Company Overview & Journey

    PhysicsWallah was founded in 2016 by Alakh Pandey on a YouTube channel. The simple language and relatable teaching style soon attracted millions of students. For students who did not have the option of expensive coaching, it became an affordable and reliable option.

    PhysicsWallah From YouTube to Unicorn

    1. Digital Growth (2020–21)

    When traditional coaching was shut down during the pandemic, PW launched mobile apps and structured online courses. With comprehensive batches and doubt solving sessions at low prices. It quickly reached Tier-2 and Tier-3 cities and gained millions of paid users.

    2. Journey to become a Unicorn (2022)

    In 2022, PhysicsWallah raised $100 million in funding and joined the Unicorn Club with a $1.1 billion valuation.This milestone showcased the success of its sustainable, student-first approach, focusing on affordable, high-quality education and rapid growth

    3. Expansion and new phase (2024–25)

    In 2024, the company raised $210 million Series-B funding and the valuation rose to $2.8 billion. By January 2025, PW opened over 198 Vidyapeeth and Pathshala centers in 109 cities. These also include residential programmes for JEE and NEET, further strengthening the hybrid learning model.

    Read Also: Zepto Case Study

    Major achievements of PhysicsWallah

    YearAchievementKey Impact
    2016YouTube channel launchedFree and easy access to Physics education
    2020–21Pandemic growthExpanded reach into Tier-2 and Tier-3 cities
    2022Unicorn status ($1.1B)Secured major funding in the very first round
    2024$210M Series BValuation rose to $2.8B with accelerated expansion
    2025198 Offline CentersMade education more accessible through hybrid model

    Vision, Mission & Core Philosophy

    Vision

    PhysicsWallah’s main goal is to democratize education in India at a large scale, i.e. every child, irrespective of their city or pin code, can get high quality education at an extremely affordable rate. Additionally, PW wants every student to fulfill their dreams and reach their full potential, and the company becomes a “Lifelong Learning Partner”.

    Mission

    • To promote equity and inclusivity in education, so that no child is left behind due to lack of resources or economic status.
    • To reach every corner of the country including Tier-2/3 cities and rural areas.
    • To run the business in a way that is long-term and sustainable, not just a fast-growing but loss-making model.

    Core Philosophy

    • Student-first approach: PW always thinks about what students want, where they get stuck, what their needs are. By understanding their real pain points and simplifying learning instead of adding unnecessary expenses or technology budgets, PW builds trust.
    • Affordability & Accessibility: The course material, live and recorded classes, offline-online hybrid model, everything is designed to benefit as many students as possible.
    • Transparency & Credibility: PW wants to provide content and experience that is clear be it fees, courses, teaching, everything is clear. Students know what they are buying and what to expect.

    PhysicsWallah Company Business Model

    PhysicsWallah is an EdTech platform that has given a new dimension to affordable education in India. Its business model is based on a hybrid education system, where on one side there are millions of students (learners) and on the other side experienced teachers (educators) who teach both online and offline.

    1. Platform-Based Hybrid Model

    PW, despite being the owner of the coaching center itself, acts as a tech-enabled aggregator. Millions of students study on the online app and website, while teachers take classes directly in offline Vidyapeeth and Pathshala centers. In this way, the company has created a reliable model by combining both the digital and physical worlds.

    2. Revenue Generation

    PhysicsWallah has multiple sources of revenues:

    • Online & Offline Courses : In FY25, ₹2,498.6 crore was earned from coaching services alone.
    • Books & Merchandise Sales : Income of about ₹259.2 crores was generated by selling books, stationery and study material.
    • Value-Added Services : Income is also generated from hostel, transport and content access.
    • Ads & Partnerships : Additional income also comes from YouTube ads and small brand promotions.

    3. Low-Cost Advantage

    The biggest plus point of PW is its affordable pricing model. Where other EdTech companies charge thousands and lakhs of rupees, PW provides the same content at very low prices. Due to high volume, revenue remains steady.

    4. Hyperlocal + Hybrid Expansion Strategy

    In 2024–25, PW rapidly expanded its offline network. By March 2025, more than 198 centers have been opened in 109 cities. Almost equal revenue came from both online and offline channels in FY25, which makes it clear that the hybrid model is PW’s biggest strength.

    PhysicsWallah’s Key Student & Platform Metrics

    MetricData
    Offline Centres198 centres in 109 cities
    Offline Revenue ContributionAbout 45% of total revenue comes from offline operations.
    Students Around 10 million students have purchased paid courses, while approximately 36 million students learn through PhysicsWallah’s 80 YouTube channels, available in eight vernacular languages.
    Languages OfferedHindi, English, Telugu, Kannada, Bengali, Malayalam, Gujarati etc.

    Read Also: Blinkit Case Study

    Marketing Strategy of PhysicsWallah Company

    • Target Audience : PhysicsWallah’s main focus is on students in the age group of 14 to 22 years who are preparing for JEE, NEET and other competitive exams. Most of these students are from small cities and towns and find it difficult to access big coaching institutes. PW has created an affordable option for these students.
    • Free Content & Freemium Approach : PW’s identity started with its YouTube channel. It provides free video lectures, doubt sessions and basic content. This strategy wins the trust of students and later leads them to premium batches, test series and personalised courses.
    • Digital & Social Media Presence : PhysicsWallah uses social media smartly. Exam tips, motivational posts and success stories are shared on Instagram, Telegram and YouTube. This creates continuous engagement and motivates students to stay connected with the brand.
    • Localized & Vernacular Strategy : PW has made content available in many Indian languages, not just English or Hindi. Along with this, the trust of students has been strengthened by opening offline centers like Pathshala and Vidyapeeth in small towns.
    • Cost-Optimized Campaigns : Unlike big ad spenders like Byju’s and Unacademy, PW has relied more on targeted digital ads, SEO and student testimonials. The advantage of this is that the cost of acquiring new students (CAC) has been very low.
    • Community Building & Word of Mouth : PW has built a strong student community on its platforms. WhatsApp and Telegram groups, doubt forums and peer learning deepen the engagement. When students share their success stories, it becomes the most effective way of word of mouth marketing.

    Financials Metrics of PhysicsWallah 

    CategoryFY24FY25Change / Highlights
    Revenue from Operations ₹1,940.7 Cr₹2,886.6 Cr49% growth
    Net Loss₹1,131.1 Cr₹243.3 CrLoss reduced by 78%
    Online Revenue₹968 Cr₹1,404 CrSteady growth
    Offline Revenue₹925 Cr₹1,351.9 CrStrong growth from hybrid model

    SWOT Analysis of PhysicsWallah Company

    Strengths

    • Affordable education model: The biggest plus point of PhysicsWallah is its low-cost course structure. This has made it easy to reach millions of students from tier-2 and tier-3 cities.
    • Hybrid presence: Online classes as well as offline centers like Vidyapeeth and Pathshala have given the company a double strength.
    • Strong student trust: Alakh Pandey’s identity and teaching style have created a loyal and trusted community among students.

    Weaknesses

    • Founder dependence: The brand identity is still largely based on Alakh Pandey, which increases dependency risk.
    • Limited diversification: The company’s focus is mainly limited to test prep segments like JEE, NEET and UPSC.
    • Thin margins: Profit margins are limited due to offering courses at very low prices.
    • Scalability pressure in offline: Expanding offline rapidly increases expenses, which can make it difficult to maintain balance.

    Opportunities

    • Rising demand in smaller cities: The demand for affordable and quality education is constantly increasing in tier-2 and tier-3 cities of India.
    • Global expansion: PW can take its model to emerging markets like South Asia and Africa.
    • Diversification into new verticals: The company can expand into K-12 education, skilling and job-oriented courses.
    • Tech adoption: PW can further strengthen its student experience by adopting AI-based learning and personalized education tools.

    Threats

    • Intense competition: There is tough competition from players like Byju’s, Unacademy and Vedantu.
    • Operational costs of offline centres: Running offline centres on a large scale can prove to be expensive for PW.
    • Regulatory challenges: Increasing government policies and regulations on the education sector can affect the company’s business model.
    • Market saturation in test-prep: Segments like JEE and NEET are already very competitive, where there may be limits to growth.

    Read Also: Ather Energy Case Study

    Conclusion

    PhysicsWallah’s story shows that with the right idea and perfect execution, education can truly be transformed. Starting from a small YouTube channel, this company has today become a trusted name for millions of students. FY25 figures show that its hybrid model is working and there are more possibilities open in the future. In the coming times, PW can give a new direction to the Indian EdTech sector by adopting diversification and technology.

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    Frequently Asked Questions (FAQs)

    1. What is PhysicsWallah Company known for?

      It is famous among JEE-NEET students for its affordable courses and trusted teaching style.

    2. How does PhysicsWallah earn revenue?

      Revenue is earned through online-offline courses, books and test series.

    3. Is PhysicsWallah profitable?

      In FY25, PhysicsWallah’s total revenue from operations reached ₹2,886.6 Cr, with net loss shrinking to ₹243.3 crore. Coaching services drove revenue, while online and offline channels grew nearly equally.

    4. How many students use PhysicsWallah?

      Lakhs of students are connected to the app, YouTube and offline centers.

    5. What makes PhysicsWallah different from its competitors?

      PhysicsWallah differentiates itself by providing high-quality, affordable courses, making premium education accessible to students in small towns and tier-2 or tier-3 cities.

  • Income Tax on F&O Trading in India

    Income Tax on F&O Trading in India

    F&O trading in India is growing rapidly every year. Many people earn good profits in it, but when it comes to tax, confusion begins. After all, how is income tax levied on f&o trading in India? Is your f&o trading income tax different or is it levied at normal slab rates? Can tax on F&O profit be reduced? In this blog, we will understand these questions in simple language and learn how to avoid penalty and notice by paying tax in the right manner.

    Understanding F&O Trading and Why Tax Treatment is Different

    Futures & Options i.e. F&O trading is the most active part of the stock market. Here most people trade to earn short-term profits or for hedging. For this reason, its tax treatment is considered different from delivery-based shares.

    Capital Gains vs Business Income

    The income from delivery shares is called Capital Gains. But the profit or loss from F&O always comes under the category of Business Income. This means that your tax on F&O profit will be taxed at slab rates like normal business income.

    Reason for different tax treatment

    Why does the tax department consider F&O different? Because it involves high leverage, frequent trading and more speculative intent. Therefore, it is considered a business activity and not an investment.

    Why correct reporting is important

    If you misclassify F&O income, the risk of notice or penalty may increase. Therefore, every trader should properly understand and follow the rules of tax on F&O.

    Income Tax Classification of F&O Trading

    According to tax rules, the profit or loss from F&O is not considered a part of any investment. It is directly counted under business income. That is, whether you are a retail trader or a professional, your income will be considered taxable under the Business Head.

    Linking with salary or other income

    F&O profit or loss is counted along with your rest of the income. If you have income from fixed salary, house rent or other sources, then the taxable amount will be decided by adding everything. This is the reason why f&o trading income tax affects your overall tax liability.

    Effect of slab rate

    There is no separate fixed rate on F&O income. It is taxed according to your income tax slab. That is, the higher your overall income, the higher will be your F&O tax rate.

    Understand with an example

    Suppose your annual salary is ₹10 lakh and you earned a profit of ₹3 lakh from F&O. In such a case, your total taxable income will be considered as ₹13 lakh and tax will be levied on it according to your F&O tax rate i.e. slab-rate.

    Read Also: How to Calculate F&O Turnover for Trading?

    Tax Rates on F&O Trading

    Futures & Options trading taxation comes under Income Tax Act, Section 44AB. The tax rate depends on your chosen regime (old or new).

    F&O Tax in Old Regime

    Total Income (Old Regime)Tax Rate
    Up to ₹2.5 lakhNil
    ₹2.5 lakh – ₹5 lakh5%
    ₹5 lakh – ₹10 lakh20%
    Above ₹10 lakh30%

    F&O Tax in New Regime

    The new regime has more slabs but deductions are not allowed (except some selected ones and the standard deduction).

    Total Income (Old Regime)Tax Rate
    Up to ₹3 lakhNil
    ₹3 lakh – ₹6 lakh5%
    ₹6 lakh – ₹9 lakh10%
    ₹9 lakh – ₹12 lakh15%
    ₹12 lakh – ₹15 lakh20%
    Above ₹15 lakh30%

    F&O Loss Adjustment Rules

    Losses are common in futures and options (F&O) trading. But there are some clear rules in the Income Tax Act for how to adjust these losses.

    With which income sources F&O losses cannot be adjusted?

    You cannot set-off these losses with every type of income. Especially adjustment is prohibited in these cases:

    • Salary income : Loss cannot be added to job salary.
    • Lottery winnings / gambling income :  No adjustment is possible with these irregular sources.
    • Speculation income :  F&O loss cannot be set-off with income from speculation like intraday equity trading.

    Against which incomes can losses be adjusted?

    F&O losses are allowed to be adjusted against some specific incomes:

    • Business income :  If you have any other business income, then the loss can be deducted.
    • Capital gains :  These losses can be adjusted against gains from Speculative Income, property or gold.
    • Other income (excluding salary/speculation) :  like rental income, interest income etc.

    Carry Forward Rule (8 Years Benefit)

    If you are unable to adjust your entire F&O loss in any year, it does not expire automatically. According to tax rules:

    • You can carry forward the loss for the next 8 years.
    • But there is a condition that it is mandatory to file ITR on time. If the due date is missed, you will lose the option of carry forward.
    • In the subsequent years, these losses can be adjusted only with business income, not with capital gains or other incomes.

    Turnover in F&O Trading – Why It Matters for Taxation

    To understand taxation in F&O (Futures & Options), it is important to first know the correct calculation of turnover. Many traders only look at net profit or loss, but the method of calculation in the Income Tax Department is different.

    How is turnover calculated?

    Difference Method is adopted to calculate turnover in F&O.

    In this, all your profits and losses have to be added in absolute value.

    Example:

    • If you made a profit of ₹1.5 lakh and suffered a loss of ₹2 lakh,
    • Then Turnover = ₹1.5 lakh + ₹2 lakh = ₹3.5 lakh

    (Here the net loss is ₹50,000, but turnover will be calculated separately as ₹3.5 lakh).

    Importance of turnover : To determine the need for audit: If the turnover is above the limit, then tax audit becomes mandatory under section 44AB.

    This calculation is also considered as the basis for checking eligibility under Presumptive Taxation (section 44AD).Adopting the wrong method can lead to mismatch in ITR and increase the risk of Income Tax Notice.

    Read Also: Budget 2024: F&O Trading Gets More Expensive?

    Loss Treatment in F&O Trading

    Loss in F&O (Futures & Options) trading is also considered a business loss. According to tax rules, it is very important to report such loss correctly and take advantage of it.

    Set-off Rules

    • You can set-off the loss incurred in F&O against business or professional income.
    • Note, it cannot be set-off against salary income.

    Carry Forward Rules

    • If the loss is not fully adjusted in the current year, then you can carry it forward for up to 8 years.
    • Going forward, this loss will be set-off only against business income.

    Why is it important to file ITR on time?

    If you do not file ITR on time, then you may lose the benefit of carry forward. Timely reporting can significantly reduce the tax burden in the coming years.

    Example: Suppose a trader suffered a loss of ₹ 4 lakh in a year. If he reports it correctly, he can use this loss in the coming years to reduce his taxable profit and save lakhs of rupees in tax.

    Audit Requirements for F&O Traders

    Under the Income Tax Act, F&O trading requires a tax audit under certain circumstances:

    • If the trading turnover is more than ₹10 crore.
    • If the turnover is above ₹1 crore but the declared profit is less than the prescribed limit.
    • If you opt for presumptive taxation (Section 44AD/44ADA), and your profit comes out to be less than 6%/8% of the turnover.

    Common situation of retail traders

    Most retail F&O traders have a large turnover but very low profits or losses. In such cases, they often become subject to audit.

    Why professional help is important

    It is very important to take the help of a qualified chartered accountant (CA) to ensure proper compliance in case of an audit. This not only ensures compliance with the rules, but also prevents penalties or notices in the future.

    ITR Filing Process for F&O Traders

    F&O trading is considered as business income in income tax. Hence, it is very important for such traders to choose the right ITR form.

    • Right ITR Form: Individuals should generally fill ITR-3 as it can report business income and loss.
    • Presumptive Scheme: Some traders may want to choose ITR-4 (Section 44AD) for easier processing. However, F&O trading can be included in it only if the declared profit is more than 6%/8%. Otherwise, an audit will be mandatory.
    • Need for Bookkeeping: Only brokerage statements or reports are not enough. Traders should prepare the correct Profit & Loss Account and Balance Sheet.
    • Reconciliation: There is mismatch in the auto-generated data of brokers, hence it is very important to do reconciliation and keep all the records matched.

    Conclusion

    It is not enough to just see profits in F&O trading, it is equally important to keep a proper account of tax. Filling the correct ITR form, filing returns on time and maintaining basic records—all these small steps save a big hassle in the future. In simple words, proper tax planning makes your trading more secure.

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    Frequently Asked Questions (FAQs)

    1. What is F&O trading in income tax?

      F&O trading is considered as business income in income tax and has to be reported accordingly.

    2. Which ITR form is required for F&O traders?

      F&O traders usually have to file ITR-3 as it is applicable for business income.

    3. How is turnover calculated in F&O trading?

      Turnover calculation is done by combining both profits and losses, not just the trade value.

    4. Is an audit required for F&O trading?

      If turnover is above the limit or profit is shown to be less than 6%/8%, then tax audit may be required.

    5. Can I show F&O losses in my ITR?

      Yes, you can show F&O loss and adjust it against profits of subsequent years.

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