8th Pay Commission: Key Updates and What’s Next for Employees

The 8th Central Pay Commission (CPC) has been a topic of much discussion among central government employees and pensioners. More than one crore employees across India are eagerly waiting for updates on pay hikes and other changes that may come with the commission.

Formation and Terms of Reference (ToR)

The central government announced the formation of the 8th Pay Commission last month. However, the appointment of its chairman and two members is still pending. The key focus now is on the Terms of Reference (ToR), which will define the scope and responsibilities of the commission. The final ToR is expected to be prepared by April 2025.

In response to a letter from the Department of Personnel and Training (DoPT), the National Council – Joint Consultative Mechanism (NC-JCM) has submitted its recommendations for the ToR. NC-JCM secretary Shiv Gopal Mishra has requested a formal meeting to finalise the proposal and ensure that employees’ concerns are addressed.

Key Areas of Focus in the 8th Pay Commission

1. Pay and Allowances Restructuring

  • The salary structure of all central government employees, including those in All India Services, Defence, Paramilitary, Postal Services, and Union Territories, will be reviewed.
  • Merging of non-professional pay scales is being considered to improve career growth.
  • Reforms in the Modified Assured Career Progression (MACP) scheme have been proposed, ensuring at least five promotions during an employee’s service period.

2. Minimum Wages and National Wage Policy

  • The commission will determine a fair minimum wage based on factors like inflation, cost of living, and consumer spending patterns.
  • The Aykroyd formula and recommendations of the 15th Indian Labour Conference will be considered in setting minimum wages.

3. Dearness Allowance (DA) and Interim Relief

  • Employees and pensioners may see DA included in their Basic Pay to provide better financial stability.
  • A demand has been raised for interim relief until the new pay structure is implemented.

4. Pension and Retirement Benefits

  • Changes in pension, gratuity, and family pension have been proposed.
  • A strong push is being made to restore the old pension scheme (CCS Pension Rules 1972) for employees who joined after January 1, 2004.
  • Pension adjustments may be revised from the current 15 years to 12 years, with pension increments every five years.

5. Medical and Welfare Benefits

  • Improvements in the Central Government Health Scheme (CGHS) have been suggested to offer cashless and more efficient healthcare services.
  • The commission is also considering increasing the children’s education allowance and hostel subsidies up to the postgraduate level.

Composition of the 8th Pay Commission

The commission will have 3 members:

  1. A Chairman
  2. 2 experts, likely from administrative and economic backgrounds

The government has started consultations with state governments and ministries like Defence, Home Affairs, and DoPT to finalize the panel members.

What This Means for Employees and Pensioners

The 8th Pay Commission will play a crucial role in shaping the financial future of government employees and pensioners. The restructuring of salaries, allowances, and pension benefits will directly impact their livelihoods.

In the coming months, all eyes will be on the government’s approach to this process. The ultimate goal should be to create a fair and balanced pay system that protects employees’ interests while maintaining economic sustainability. Whether the 8th Pay Commission meets expectations remains to be seen.

Conclusion

The 8th Pay Commission is set to impact millions of employees and pensioners through salary revisions, pension reforms, and better benefits. The coming months will reveal how effectively the government addresses their concerns.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India to Sign MoU with Israel and Saudi Arabia for Critical Minerals

India is set to sign agreements with Israel and Saudi Arabia to explore and process critical minerals. This move aims to boost India’s domestic supply and reduce dependence on imports, Union Mines Minister G. Kishan Reddy announced on Thursday.

Agreement with Israel: Technology Transfer and AI in Mining

India’s MoU with Israel will focus on technology transfer to extract potassium from seawater. It will also introduce artificial intelligence (AI) in mining operations, improving efficiency and resource utilisation. The Indian government has already approved this agreement, and a policy framework is being drafted for finalisation in the coming months.

Collaboration with Saudi Arabia: Strengthening Mineral Sector Ties

The MoU with Saudi Arabia follows high-level discussions between Indian and Saudi ministers. It aims to enhance cooperation in the critical minerals sector and explore investment opportunities. India is also planning similar agreements with the Democratic Republic of the Congo and Zambia.

Deployment of Nodal Officers for Global Mineral Exploration

India is deploying 20 nodal officers in key global locations to strengthen international partnerships. These officers, stationed at Indian embassies, will identify critical mineral resources and coordinate with Indian companies for exploration and investment.

States Joining India’s Mineral Action Plan

Several Indian states, including Telangana, Bihar, and Arunachal Pradesh, have now agreed to participate in the mineral auction process. Currently, 14 states are involved, with Assam, Jammu & Kashmir, and Kerala expected to join soon. This initiative is expected to generate jobs, increase state revenues, and support economic growth.

Auction of Mineral Blocks and Revenue Generation

So far, India has auctioned 335 mineral blocks, out of which 106 have been successfully allocated. State governments have received ₹4.15 trillion in revenue, including ₹2.37 trillion from royalties. Jammu & Kashmir is also expected to adopt the auction model, with a focus on limestone extraction.

Mining Waste Utilisation and New Exploration Licenses

The government is also exploring ways to extract critical minerals from waste dumps, tailings, and offshore sites. This initiative is set to begin within the next 90 days. Additionally, an exploration license block auction is scheduled for next month, further integrating Jammu & Kashmir into India’s mineral strategy.

Record Mineral Production and the State Index Mining Initiative

India’s mineral production for FY24 reached ₹1.4 trillion and is projected to grow to ₹1.5 trillion in FY25. The country has achieved record production in key minerals like iron ore, limestone, and manganese. To improve state-level mining efficiency, the government has launched the State Index Mining Initiative, which will evaluate states based on regulation, administration, technical expertise, and sustainability, starting in FY26.

Conclusion

India’s strategic collaborations and policy initiatives aim to strengthen domestic mineral resources, enhance global partnerships, and drive economic growth in the mining sector.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

PM-KISAN: What to Do If You Haven’t Received the 19th Installment?

Prime Minister Narendra Modi recently visited Bhagalpur, Bihar, to release the 19th instalment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme. However, some farmers may not have received their payment due to incomplete documentation.

Why Haven’t Some Farmers Received the 19th Installment?

Farmers who have not completed their e-KYC or linked their Aadhaar with their bank accounts may face delays in receiving the payment. Completing these steps is necessary to ensure smooth fund transfers.

How to Complete e-KYC for PM-KISAN?

To receive the 19th instalment, farmers must complete the e-KYC process. Follow these steps:

  1. Visit the official PM-KISAN website: pmkisan.gov.in
  2. Click on the ‘eKYC’ option under the ‘Farmer Corner’ section.
  3. Enter your 12-digit Aadhaar number in the required field.
  4. Click on ‘Search’.
  5. Enter the OTP received on your Aadhaar-registered mobile number.
  6. Click ‘Submit’ to complete the process.

Alternatively, farmers can visit their nearest Common Service Centre (CSC) to complete e-KYC using their Aadhaar and biometric authentication.

How to Check PM-KISAN Installment Status?

Farmers can check their payment status online:

  1. Go to the PM-KISAN website.
  2. In the ‘Farmers Corner’, click on ‘Beneficiary Status’.
  3. Enter your Aadhaar number or bank account number.
  4. Click ‘Get Data’ to view your payment status.

Need Help? Use the PM-KISAN AI Chatbot

The government launched an AI Chatbot in 2023 to assist farmers with queries related to the PM-KISAN scheme. This chatbot provides instant and accurate answers, helping farmers resolve issues efficiently.

What is PM-KISAN?

Launched in February 2019, the PM-KISAN scheme provides financial assistance to land-holding farmers. Under this scheme, ₹6,000 is transferred annually in 3 equal instalments directly to farmers’ Aadhaar-linked bank accounts through Direct Benefit Transfer (DBT).

 

Conclusion

Farmers who haven’t received the 19th PM-KISAN installment should complete e-KYC and Aadhaar-bank linking to avoid delays. Regularly checking the payment status online and using the AI chatbot for assistance can help resolve issues quickly, ensuring a smooth disbursement process.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Stock Market Crash: Sensex Drops 1,000 Points –Why is the Share Market Falling?

The Indian stock market witnessed a sharp decline on Friday, with the Sensex falling nearly 1,000 points and the Nifty 50 slipping over 1.2% in early trading. The Bank Nifty index also declined by around 1%. Broader markets faced even heavier losses as the BSE Small-cap and Mid-cap indices dropped by nearly 2%. The market downturn affected all sectors, with IT, auto, telecom, and tech stocks suffering the most.

Why is the Indian Stock Market Falling?

The five key reasons behind today’s decline are concerns about weak bank earnings, adjustments in the MSCI index, domestic institutional investors (DIIs) holding positions at higher levels, rising US bond yields, and foreign investors (FIIs) shifting funds from India to China.

1. Concerns Over Weak Bank Earnings

Since banking stocks make up 30% of the Nifty 50 index, any negative sentiment around them significantly impacts the market. After disappointing Q3 earnings, investors are worried that Q4 results may also fall short of expectations.

2. DIIs Holding Back on Investments

While FIIs continue selling Indian stocks, DIIs are not stepping in aggressively to counter the selling pressure. This is because many DIIs have already invested at higher levels and are waiting for a clearer market trend before making further moves.

3. MSCI Index Changes

The upcoming MSCI index reshuffle is another reason for market volatility. These adjustments impact trading volumes, and capital flows into specific stocks. As a result, both DIIs and FIIs are rebalancing their portfolios, leading to market uncertainty.

4. Rising US Bond Yields

Higher returns in the US bond market are prompting FIIs to withdraw from Indian equities and invest in US bonds instead. This trend has intensified after Donald Trump’s return as the US President, leading to increased capital outflows from India.

5. FIIs Moving Investments to China

Another major factor is the shift in FII investment from India to China. With China implementing economic stimulus measures, rate cuts, and liquidity injections, investor confidence in the Chinese market has improved. This has resulted in a ‘sell India, buy China’ trend among foreign investors, adding to selling pressure in Indian stocks.

Conclusion

The combination of weak earnings expectations, global market trends, and shifting investment flows has led to a significant sell-off in Indian stocks. Until these factors stabilise, market volatility is likely to continue.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

International Trips Got Expensive due to Weak Rupee: Here’s Ways to Save

The Indian Rupee (INR) has fallen by about 3.5% against the US Dollar in the past 6 months, crossing ₹87 per USD. As per a report, the USD rose 5% over the past year, from ₹83.01 on February 10, 2024, to ₹87.45 on February 1, 2025.

Impact of a Weaker Rupee on Travel

When the rupee loses value, international travel becomes more expensive. Here’s how it affects your budget:

  • Higher Costs for Flights and Hotels – Travel expenses in USD or other foreign currencies become costlier, increasing the overall trip cost.
  • Expensive Shopping and Activities – Everything from dining to sightseeing costs more in rupee terms.
  • Increased Airline Expenses – Rising fuel prices and global inflation make flights more expensive.

Changes in Travel Behavior

The rising cost of travel has forced changes in both business and leisure trips:

  • Businesses Cutting Costs – Companies are reducing unnecessary travel and switching to virtual meetings.
  • Luxury Travelers Adjusting Budgets – High-net-worth individuals are using forex planning to manage expenses while maintaining premium travel experiences.

Ways to Save on International Travel

You can still manage your expenses by planning ahead and using smart financial strategies:

1. Use Multi-Currency Forex Cards

  • Lock exchange rates in advance.
  • Save on currency conversion fees.
  • Safe and widely accepted at hotels, resorts, and shops.

2. Book Flights and Hotels in Advance

  • Avoid price increases due to further rupee depreciation.
  • Get better deals on flights and accommodations.

3. Buy Foreign Currency in Installments

  • Instead of exchanging all money at once, buy forex in smaller amounts over time.
  • Helps average out currency fluctuations.

4. Pay in Local Currency

  • Avoid extra fees charged by INR-denominated credit cards.
  • Use payment methods that minimise forex charges.

5. Pick Destinations Where the Rupee Stretches Further

  • Travel to countries where INR has a better exchange rate to save money.

6. Choose Travel Insurance with Forex Protection

  • Some policies cover forex volatility and unexpected expenses.

Best Payment Methods for International Travel

Payment Method Benefits When to Use
Prepaid Forex Card Fixed exchange rates, secure, widely accepted For daily expenses, shopping
Credit Card (No Forex Fees) Good exchange rates, no need to carry cash Large purchases, hotel bookings
Debit Card (Cash Withdrawal) Easy access to local currency ATM withdrawals, emergencies
Digital Wallets (Apple Pay, etc.) Contactless payments, minimal fees Small purchases, stores accepting digital pay
Local Cash No transaction fees, accepted everywhere For places that don’t take cards

Conclusion

A weaker rupee makes international trips costlier, but smart planning can help reduce the impact. By using Forex cards, booking early, and choosing the right payment method, you can still enjoy a budget-friendly vacation.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Upcoming Dividends in March 2025: Castrol India, SBI Life and More

Dividends represent a share of a company’s earnings distributed to shareholders as a return on their investment. They are considered a steady source of passive income for investors. This article highlights the upcoming dividend-paying stocks in March 2025.

Upcoming Dividends in March 2025 

Company Name Ex Date Purpose Record Date
Aayush Wellness Ltd 03 Mar 2025 Interim Dividend – ₹0.0100 03 Mar 2025
SBI Life Insurance Company Ltd 07 Mar 2025 Interim Dividend 07 Mar 2025
CASTROL INDIA LTD. 18 Mar 2025 Final Dividend – ₹9.5000 18 Mar 2025
DIC INDIA LTD. 18 Mar 2025 Final Dividend – ₹4.0000 18 Mar 2025

Advantages of Dividends

  • Reliable Income Source

Dividends offer shareholders a steady stream of income, making them particularly beneficial for income-focused investors such as retirees. These payments are typically issued quarterly or annually.

  • Enhanced Growth Through Compounding

Reinvesting dividends can accelerate investment growth over time. Investors can maximise returns through compounding by using dividend payouts to purchase additional shares.

  • Indicator of Financial Strength

Companies that consistently pay and increase dividends often reflect strong financial health and profitability. Regular dividend payments indicate a stable cash flow, reassuring investors.

  • Reduced Risk

Stocks that pay dividends, especially those from established companies, tend to be less volatile than non-dividend stocks. Investors looking for stability may prefer them for their potential to generate steady returns.

  • Potential for Value Appreciation

Beyond providing income, dividend-paying stocks can also grow in value over time, offering investors both dividends and capital gains.

Conclusion

In addition to the stocks mentioned earlier, many other companies may offer dividends in the final days of March 2025. However, investors should conduct thorough research and assess their financial goals before making investment decisions. Ensuring that investments align with risk tolerance and long-term objectives is essential for a well-balanced portfolio.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Can You Plan Early Retirement with the National Pension Scheme (NPS)?

The National Pension System (NPS) is a flexible and tax-efficient retirement plan that can help individuals, including those aiming for early retirement, build a strong financial foundation.

Why NPS is Suitable for Early Retirement

NPS is often seen as a long-term investment, but its features make it attractive for early retirees as well.

  • Low Contribution Requirement: You can keep an NPS account active with a minimum yearly contribution of just ₹1,000, making it ideal even for those with irregular incomes.
  • Flexible Contributions: Subscribers can contribute as per their financial situation, and younger investors can front-load their investments to maximise returns.
  • Market-Linked Returns: Unlike fixed deposits or traditional insurance plans, NPS provides exposure to equity investments, leading to potentially higher long-term returns.
  • Power of Compounding: A 30-year-old investing ₹12,000 per month at an average 10% annual return could accumulate around ₹2.35 crore by age 50, making early retirement a possibility.

NPS Vatsalya: A Retirement Plan for Children

NPS Vatsalya is a scheme under NPS that allows parents to create a pension account for their minor children, managed by the Pension Fund Regulatory and Development Authority (PFRDA). Children receive a Permanent Retirement Account Number (PRAN) card upon registration.

How Much Can Your Child Save?

Here’s how a child’s savings can grow under NPS Vatsalya:

  • Annual Contribution: ₹10,000
  • Investment Duration: 18 years
  • Estimated Corpus at Age 18: ₹5 lakh (assuming a 10% return)

Estimated Corpus at Age 60:

  • At 10% return: ₹2.75 crore
  • At 11.59% return: ₹5.97 crore
  • At 12.86% return: ₹11.05 crore

Is NPS the Best Option for Retirement?

While NPS offers disciplined savings, it may not be the best choice for active investors who want more control over their investments.

  • Limited Equity Exposure: NPS caps equity allocation at 75%, which reduces with age, restricting growth potential.
  • Lack of Flexibility: A well-planned mutual fund portfolio can provide better flexibility and potentially higher returns for investors who actively manage their wealth.

Disadvantages of NPS

  • Mandatory Annuity Purchase: At age 60, at least 40% of the NPS corpus must be used to buy an annuity, ensuring a steady income. However, annuity payments may not keep pace with inflation, reducing purchasing power over time.
  • Investment Management Challenges: If a subscriber withdraws 60% of the corpus, they must manage this large amount themselves. If they lack investment experience, they may struggle to make the right financial decisions.

 

Conclusion

NPS is a great option for those seeking a hands-off investment approach with tax benefits and structured savings. If you’re planning for early retirement, combining NPS with other investment options could be the best strategy.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Angel One Nifty Total Market ETF vs. Nifty 500 ETF: Is the Extra Coverage Worth It?

ETFs have become increasingly popular among Indian investors, with AUM exceeding ₹5 lakh crore as of 2024. Their rising adoption is fueled by high liquidity, transparency, and lower costs than actively managed mutual funds.

Angel One Mutual Fund has introduced the Nifty Total Market ETF and Nifty Total Market Index Fund, both tracking the Nifty Total Market Index. This raises an important question for investors: Is the broader coverage of the Nifty Total Market ETF worth it, or does the Nifty 500 ETF offer sufficient diversification?

Both indices follow a free-float market capitalisation methodology and have similar sectoral compositions, with financial services as the dominant sector. However, the Nifty Total Market Index includes microcap stocks, which slightly enhance returns but also increase volatility.

Nifty Total Market ETF

Until recently, there was no ETF tracking the Nifty Total Market Index, which includes 750 stocks across large-cap, mid-cap, small-cap, and micro-cap segments. This makes it one of the most diversified ETFs in India, representing nearly the entire listed equity market.

Angel One Mutual Fund has introduced 2 new funds benchmarked to the Nifty Total Market TRI. The New Fund Offer (NFO) runs from February 10 to February 21, 2025, offering investors a chance to invest in a broad-market index.

Nifty 500

The Nifty 500 Index is a broad-market benchmark that represents the top 500 companies listed on the National Stock Exchange (NSE). It covers large-cap, mid-cap, and small-cap stocks, accounting for approximately 94% of the total market capitalisation of NSE-listed companies. This makes it one of the most comprehensive indices for tracking the performance of the Indian equity market. 

The index is well-diversified across sectors, with financials holding the largest weight (~29%), followed by information technology (~12%), energy (~10%), and consumer goods & services (~9%). Some of its top constituents include HDFC Bank, Reliance Industries, TCS, ICICI Bank, and Infosys.

Overall, the Nifty 500 serves as an excellent benchmark for passive investors seeking broad-market exposure, offering stability from large-cap stocks and growth opportunities from smaller companies.

Nifty Total Market Index vs Nifty 500 Index

Criteria Nifty Total Market Index Nifty 500 Index
Coverage 750 stocks (Large, Mid, Small & Microcap) 500 stocks (Large, Mid & Small-cap)
Constituents Stocks from Nifty 500 & Nifty Microcap 250 Top 500 companies by market cap
Top Sector (Weightage) Financial Services (28.55%) Financial Services (29.29%)
Top Stock (Weightage) HDFC Bank (6.99%) HDFC Bank (7.26%)
P/E Ratio 24.38 24.27
P/B Ratio 3.72 3.74
Dividend Yield 1.2% 1.22%
1-Year Return (%) 9.03% 8.98%
5-Year CAGR (%) 17.43% 16.96%
Since Inception Return 13.41% 10.74%

Key Differences

  1. Stock Universe: The Nifty Total Market Index includes microcap stocks, while the Nifty 500 does not.
  2. Broader Market Representation: The Nifty Total Market Index covers a more comprehensive range of stocks (750 vs. 500).
  3. Returns: The Nifty Total Market Index has slightly higher long-term returns than the Nifty 500.
  4. Volatility: Standard deviation and beta are slightly higher in the Nifty Total Market Index, indicating marginally higher risk.

Is the Extra Coverage Justified? Weighing the Cost vs. Diversification

While the Nifty Total Market ETF provides broader market exposure, the actual marginal benefit over the Nifty 500 ETF is limited. Here are key considerations:

  • Cost Consideration: The expense ratio of the Nifty Total Market ETF might be slightly higher due to its larger stock universe. Investors must evaluate if this additional cost is justified by marginally higher returns.
  • Diversification vs. Impact on Returns: While adding microcap stocks theoretically increases diversification, historical data suggests only a slight increase in long-term returns.
  • Risk Factor: Exposure to microcaps leads to higher volatility, which may not be suitable for risk-averse investors.

Who should invest?

  • Investors seeking maximum diversification, including microcaps, may prefer the Total Market ETF.
  • Investors comfortable with large & mid-cap exposure might find the Nifty 500 ETF sufficient, with slightly lower volatility.

Ultimately, the decision depends on an investor’s risk appetite and preference for extra diversification vs. stability.

Conclusion

While the Nifty Total Market ETF offers broader market exposure and slightly higher long-term returns, the marginal benefit over the Nifty 500 ETF is limited.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

 

Closing Bell: Sensex, Nifty End Flat Amid Broader Market Selloff On February 27, 2025

On Thursday, February 27, 2025, Indian stock markets mainly remained flat despite selling pressure in broader indices. 

The BSE Sensex fluctuated between a high of 74,834 and a low of 74,521 before closing at 74,612, up 10 points. Meanwhile, the NSE Nifty 50 traded within a 100-point range, touching a high of 22,613 and a low of 22,508, before settling nearly unchanged at 22,545.

Top Gainers and Losers

Among Sensex stocks, Bajaj Finance and Bajaj Finserv led the gains, rising up to 3%, followed by IndusInd Bank, HDFC Bank, Zomato, and Axis Bank, which gained over 1% each.

On the other hand, UltraTech Cement dropped nearly 5% after announcing its entry into the wires and cables business. This news triggered a sharp selloff in other wire and cable makers, with KEI Industries, RR Kabel, and Polycan India tumbling up to 20%.

Other notable Sensex losers included Mahindra & Mahindra, Tata Motors, Kotak Mahindra Bank, SBI, NTPC, and HCL Technologies.

Broader Market Performance

The BSE MidCap index slipped 1%, while the SmallCap index dropped 2%. The market breadth was negative, with more than three declining stocks for every advancing share on the BSE.

Oil Prices

As of February 27, 2025, at 03:36 PM, Brent Crude was trading flat at $73.21, up by 0.94%.

Conclusion

Despite gains in select NBFC stocks, broader market weakness weighed on investor sentiment. Investors should stay cautious amid sectoral volatility and global cues.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Best IT Stocks in India for March 2025 – 5Y CAGR Basis: Wipro, Infosys, Tech Mahindra and More

India’s IT sector plays a crucial role in driving economic growth and innovation. With expertise in software development, IT consulting, and business process outsourcing, the country has established itself as a global technology leader. The industry is projected to reach $350 billion by 2026, contributing 10% to India’s GDP. This article explores the top IT stocks in India for March 2025, ranked based on their 5-year CAGR.

Best IT Stocks in India in March 2025 – Based on 5yr CAGR

Name Market Cap (₹ Crore) ↓5Y CAGR (%) 1Y Return (%) Net Profit Margin (%)
Zensar Technologies Ltd 18,259.07 41.68 51.09 13.14
Coforge Ltd 51,049.25 32.22 15.78 8.74
Wipro Ltd 3,04,689.49 19 9.33 11.95
Infosys Ltd 7,32,277.97 17.23 6.48 16.56
Tech Mahindra Ltd 1,56,034.71 14.16 22.78 4.46

Note: The best IT stocks list provided here is as of February 27, 2025. The stocks are selected from the Nifty 500 universe and are sorted based on the 5-yr CAGR. 

Overview of the 5 Best IT Stocks in India in March 2025

1. Zensar Technologies Limited

Zensar Technologies Limited is a publicly listed Indian software and services company. It is a subsidiary of the RPG Group and is chaired by Harsh Goenka. 

In the quarter ending December 2024, Zensar Technologies reported a revenue of ₹559.20 crore, slightly up from ₹556.20 crore in September 2024. The company’s net profit for December stood at ₹153.20 crore, an increase from ₹116.20 crore in the previous quarter. 

Key metrics:

  • Earning per Share (EPS): ₹24.71
  • Return On Equity (ROE): 20.21%

2. Coforge Ltd

Coforge is a leading IT services provider offering comprehensive software solutions. It ranks among India’s top 20 software exporters, serving major global clients such as British Airways, the ING Group, SEI Investments, Sabre, and SITA. 

In Q3 FY24, the company reported a revenue of ₹1,432.7 crore, up from ₹1,325.8 crore in the previous quarter. The net profit stood at ₹105.9 crore, compared to ₹229.5 crore in Q2. 

Key metrics:

  • EPS: ₹106.30
  • ROE: 12.70%

3. Wipro Ltd

Wipro Ltd is a multinational company specialising in IT services, consulting, and business process solutions. It ranks as the fourth-largest Indian IT services provider globally, following TCS, Infosys, and HCL Technologies.

For Q3 FY24, Wipro reported a revenue of ₹16,803 crore, slightly down from ₹16,895.80 crore in the previous quarter. The company’s net profit stood at ₹2,812.10 crore, an increase from ₹2,713.50 crore in Q2. 

Key metrics:

  • EPS: ₹9.88
  • ROE: 16.38%

4. Infosys Ltd

Infosys Ltd offers consulting, technology, outsourcing, and next-generation digital services to help clients implement their digital transformation strategies. It is India’s second-largest IT company, following TCS.

In Q3 FY24, Infosys reported a revenue of ₹34,915 crore, up from ₹34,257 crore in the previous quarter. Net profit stood at ₹6,358 crore, compared to ₹6,813 crore in Q2. 

Key metrics:

  • ROCE: 40.0%
  • ROE: 31.8%

5. Tech Mahindra Ltd

Tech Mahindra Ltd offers a broad spectrum of IT services, including IT-enabled solutions, application development and maintenance, consulting, and enterprise business solutions. The company serves a diverse range of corporate clients across various industries.

For the quarter ended December 2024, Tech Mahindra reported a revenue of ₹11,176.2 crore, up from ₹10,938.6 crore in the previous quarter. The company’s net profit stood at ₹858.3 crore, compared to ₹1,293.8 crore in September 2024. 

Key metrics:

  • EPS: ₹33.76
  • ROE: 14.84%

Best IT Stocks in March 2025 – Based on Market Cap

Name ↓Market Cap (₹ Crore)
Tata Consultancy Services Ltd 13,13,202.96
Infosys Ltd 7,32,277.97
HCL Technologies Ltd 4,43,427.16
Wipro Ltd 3,04,689.49
Tech Mahindra Ltd 1,56,034.71

Note: The best IT stocks list provided here is as of February 27, 2025. The stocks are selected from the Nifty 500 universe and are sorted based on the market cap. 

Best IT Stocks in March 2025- Based on Net Profit Margin

Name ↓Net Profit Margin (%)
Infosys Ltd 16.56
Zensar Technologies Ltd 13.14
Wipro Ltd 11.95
Coforge Ltd 8.74
Tech Mahindra Ltd 4.46

Note: The best IT stocks list provided here is as of February 27, 2025. The stocks are selected from the Nifty 500 universe and are sorted based on the net profit margin. 

Important Factors to Consider Before Investing in IT Stocks in India

India’s IT sector offers immense growth opportunities, but making smart investment decisions requires analysing multiple factors. From company size to market trends, here’s what to evaluate before buying IT stocks.

  • Focus on Innovation and Technological Advancements

Innovation is a key driver of success in the IT industry. Businesses that develop and commercialise new technologies tend to perform better in the market. Investors should look for companies with patents, advanced solutions, and a strong track record of technological progress, as these elements can significantly enhance stock value.

  • Competitive Market Position

The IT sector is highly competitive, making it crucial to assess a company’s market position before investing. Factors such as product differentiation, strategic partnerships, and adaptability to changing market conditions play a crucial role in determining a company’s long-term success.

  • Industry Trends and Demand Growth

Emerging technologies like blockchain, artificial intelligence, and cloud computing are reshaping the IT landscape. Companies that embrace these advancements and align with evolving customer needs are more likely to achieve sustained growth. Keeping track of these trends helps in selecting promising stocks.

  • Economic Conditions and Market Influences

Macroeconomic factors such as GDP growth, interest rates, and consumer spending directly impact IT stocks. While economic slowdowns can pose challenges, growth phases present lucrative opportunities. Understanding broader market conditions can help investors assess the potential of the IT sector before making investment decisions.

Growth of India’s IT Sector

The IT and BPM industry has become a key pillar of India’s economic growth, significantly contributing to GDP and overall development.

According to NASSCOM, India’s IT industry generated $227 billion in revenue in FY22, reflecting a 15.5% year-on-year growth, and was estimated to have reached $245 billion in FY23. IT exports saw a 9% growth in constant currency terms, reaching $194 billion in FY23, while IT services exports were projected at $199 billion in FY24.

India’s public cloud services market expanded to $3.8 billion in the first half of 2023 and is expected to grow to $17.8 billion by 2027. By 2026, increased cloud adoption could generate 14 million jobs and contribute $380 billion to India’s GDP.

Conclusion

Beyond the stocks discussed, there are numerous other IT stocks in India worth considering. Investors should conduct thorough research by evaluating a company’s financial health, business strategy, and future growth potential before making investment decisions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.