Halal Stocks In Indian Market As Of 13th September 2024
Shariah compliant funds refer to all those investment funds and options that work along the lines of the Shariah law and regulations stipulated by Shariah Scholars.
These funds take into consideration the principles laid down by Shariah Boards and screen the funds based on whether they follow the same or not.
It is not a very new concept. However, yes, it has become very popular recently.
In India, there has been a rising popularity of Shariah compliant stocks. So, now you have a basic idea of what Shariah compliant funds are. Let us now look at why they are important.
Why Shariah Compliant Stocks?
Generating income from making investments in shares or funds is the goal of investments in general but If you need to generate income that should be HALAL then you need to find out Shariah Compliant Stocks or Shariah Compliant funds where you can invest in them to earn Halal Income.
Investing in Shariah Compliant stocks or Shariah Compliant funds encourage investors to keep your investments Islamic and keep you away from Haram activities prohibited by Islam like sale of pork products, arms, ammunition, alcohol, drugs, etc.
It not only helps you adhere to Islamic principles in every aspect of life, but it also allows you to earn money and contribute to the country’s economic growth.
To learn more, please check our Islamicly Shariah Screening Criteria to ensure that your investments align with Islamic principles and are compliant with Shariah guidelines.
List Of Top 10 Companies In India By Market Capitalization And Their Shariah Compliance Status
Explore the leading companies in India ranked by market capitalization, along with their Shariah compliance status to help you make informed investment decisions.
| Company | Market Cap | Shariah Compliance | Compliance Risk Factor |
|---|---|---|---|
| Reliance Industries Ltd | ₹19.93T | Halal | Low (Not likely to turn Non Compliant) |
| Tata Consultancy Services Ltd | ₹16.29T | Halal | Low (Not likely to turn Non Compliant) |
| HDFC Bank Ltd | ₹12.71T | Non Halal | Low (Not likely to turn Compliant) |
| Bharti Airtel | ₹9.85T | Non Halal | Low (Not likely to turn Compliant) |
| ICICI Bank | ₹8.92T | Non Halal | Low (Not likely to turn Compliant) |
| Infosys | ₹8.07T | Halal | Low (Not likely to turn Non Compliant) |
| SBI | ₹6.97T | Non Halal | Low (Not likely to turn Compliant) |
| Hindustan Unilever Ltd | ₹6.74T | Halal | Low (Not likely to turn Non Compliant) |
| ITC | ₹6.37T | Non Halal | Low (Not likely to turn Compliant) |
| Bajaj Finance | ₹4.60T | Non Halal | Low (Not likely to turn Compliant) |
How Many Halal Stocks Are There In India?
The need for Halal Investments in India is on the rise. Many people need to know how to get the shariah screened compliant companies to invest in and from where.
The numbers of Shariah compliant stocks in India are huge and Halal investors in Indian equities have several options to invest in different companies. Thus they want to know how many shariah compliant stocks available for trading in.
Around 54% of Indian companies listed on the Stock exchanges are Shariah compliant.
Shariah Compliant Stocks in India (Hover to view more details)
If you need to know the shariah status of any individual stock, you need to download “Islamicly” app which will enable you to get the shariah status of any stock not only Indian stocks but global stocks also .
The NSE and BSE both has Shariah Compliant indices as below;
The S&P BSE 500 Shariah Index – This index includes 500 companies screened out for shariah compliant investment with help of S&P Shariah Screening Partner “Ratings Intelligence”
NIFTY Shariah Index – it has incorporated 3 shariah indices namely: the top 50, top 25 and top 500 companies. There are three main Shariah indices served by NSE with the co-ordination with TASIS – a shariah screening parent.
Shariah Compliant Stocks In India – Sector Wise
| Sector | Compliant | Non – Compliant | Grand Total |
| Advertising | 0 | 2 | 2 |
| Apparel/Accessories | 9 | 6 | 15 |
| Appliance & Tool | 2 | 3 | 5 |
| Auto & Truck Manufacturers | 1 | 1 | 2 |
| Auto & Truck Parts | 2 | 0 | 2 |
| Basic Materials | 534 | 284 | 818 |
| Beverages (Non-alcoholic) | 0 | 0 | 0 |
| Biotechnology & Drugs | 4 | 4 | 8 |
| Broadcasting & Cable TV | 0 | 1 | 1 |
| Business Services | 10 | 2 | 12 |
| Capital Goods | 386 | 280 | 666 |
| Chemical Manufacturing | 5 | 6 | 11 |
| Chemicals – Plastics & Rubber | 0 | 3 | 3 |
| Coal | 0 | 2 | 2 |
| Communications Equipment | 1 | 0 | 1 |
| Communications Services | 1 | 2 | 3 |
| Computer Hardware | 1 | 1 | 2 |
| Computer Networks | 1 | 0 | 1 |
| Computer Services | 0 | 0 | 0 |
| Constr. – Supplies & Fixtures | 2 | 0 | 2 |
| Constr. & Agric. Machinery | 4 | 0 | 4 |
| Construction – Raw Materials | 3 | 2 | 5 |
| Construction Services | 6 | 5 | 11 |
| Consumer Cyclical | 317 | 280 | 597 |
| Consumer Financial Services | 1 | 7 | 8 |
| Consumer/Non-Cyclical | 201 | 161 | 362 |
| Containers & Packaging | 4 | 4 | 8 |
| Crops | 5 | 1 | 6 |
| Electric Utilities | 4 | 2 | 6 |
| Electronic Instr. & Controls | 4 | 3 | 7 |
| Energy | 39 | 22 | 61 |
| Fabricated Plastic & Rubber | 3 | 4 | 7 |
| Financial | 25 | 446 | 471 |
| Fish/Livestock | 2 | 2 | 4 |
| Food Processing | 8 | 9 | 17 |
| Footwear | 0 | 1 | 1 |
| Healthcare | 227 | 59 | 286 |
| Healthcare Facilities | 3 | 1 | 4 |
| Hotels & Motels | 1 | 1 | 2 |
| Investment Services | 3 | 30 | 33 |
| Iron & Steel | 9 | 9 | 18 |
| Jewelry & Silverware | 3 | 2 | 5 |
| Major Drugs | 0 | 0 | 0 |
| Medical Equipment & Supplies | 1 | 0 | 1 |
| Metal Mining | 4 | 0 | 4 |
| Misc. Capital Goods | 1 | 0 | 1 |
| Misc. Fabricated Products | 2 | 2 | 4 |
| Misc. Financial Services | 1 | 15 | 16 |
| Misc. Transportation | 4 | 4 | 8 |
| Motion Pictures | 0 | 2 | 2 |
| Natural Gas Utilities | 0 | 0 | 0 |
| Oil & Gas Operations | 3 | 3 | 6 |
| Paper & Paper Products | 1 | 5 | 6 |
| Personal & Household Prods. | 1 | 2 | 3 |
| Personal Services | 0 | 1 | 1 |
| Printing & Publishing | 0 | 2 | 2 |
| Printing Services | 0 | 1 | 1 |
| Rajputana Investment And Finance Ltd | 0 | 0 | 0 |
| Real Estate Operations | 9 | 8 | 17 |
| Recreational Activities | 1 | 2 | 3 |
| Rental & Leasing | 0 | 0 | 0 |
| Retail (Apparel) | 0 | 0 | 0 |
| Retail (Department & Discount) | 0 | 1 | 1 |
| Retail (Grocery) | 1 | 0 | 1 |
| Retail (Home Improvement) | 1 | 1 | 2 |
| Retail (Specialty) | 0 | 1 | 1 |
| Services | 260 | 281 | 541 |
| Software & Programming | 18 | 10 | 28 |
| Technology | 304 | 109 | 413 |
| Textiles – Non Apparel | 13 | 12 | 25 |
| Transportation | 56 | 41 | 97 |
| Utilities | 35 | 31 | 66 |
| Water Transportation | 0 | 0 | 0 |
| Grand Total | 2547 | 2182 | 4729 |
How Do I Do Halal Investing As A Beginner?
As a beginner, you need to be a little cautious about how you invest in the shariah compliant funds. Firstly, you have to be sure that the stocks or the funds are under the Shariah Law.
You have to have a proper strategy before investing your hard earned money anywhere. You can take help from any halal financial experts or advisors.
Usually the first step is opening a trading account and then going ahead and starting your portfolio. You may get in touch with us too for any queries or help regarding the same.
Are There Any Conventional Securities That Are Halal To Trade?
Before you select any particular stock or fund to invest in, you must check certain criteria that will help you decide better for yourself. You have to be fully aware of these criteria to decide whether the stock is Shariah compliant or not.
A few checks include the nature of business and other financial parameters. The first criterion includes a check on whether the company deals with the production or sales of items like tobacco, drugs, alcohol, Pork, Gambling, Pornography and Financials etc. The later criterion looks into parameters like Debt to Market Cap, Cash to Market Cap etc.
Is Investing In Stock Halal? Is The Income From Stocks Halal?
As we have discussed above, investing in stocks is halal as long as it doesn’t associate with any company dealing with prohibited activities as explained.
What Are The Halal Ways I Can Invest My Income?
You can do proper research on the various types of stocks, funds, and shares available in the investment market. These investment opportunities have proven to be very beneficial to increase your income.
This is all the basic information that you would need about the Shariah compliant funds. Once you are all set with your decision to invest in the same, you must read the market carefully to make out the best investment options for you.
We hope that our article has helped you in understanding this concept. In case you are flooded with more doubts, do reach out to us.
Manage Halal Trading with the Islamicly App
Islamicly App is your one stop destination that can help you manage your investments in a Shariah compliant manner.
This unique app provides the latest updates on a list of halal stocks in India and globally. It enables users to create portfolios, track Shariah compliance status changes, calculates the purging amount (Dividend Purification). You can access forums and participate in stock related discussions as well as general discussions. It also provides current prices of each stock as well as the top gainers and losers in relation to Shariah and much more.
Islamicly also has a web/desktop version that allows you to manage your Shariah compliant investments on the web and has many more advance features. So, what you are waiting for? Download the App or access the Web portal Today.
