Short Term Stocks – Best Short Term Stocks

Short-term stocks are investments held for a brief period, typically less than a year. Investors aim to profit from quick price movements due to market trends, news, or economic events. This strategy involves higher risk, as stock prices can fluctuate significantly over short periods.

The table below shows the best short-term stocks based on the highest market capitalisation and 1-year return.

Introduction To Short Term Stocks In India

Suzlon Energy Ltd

The Market Cap of Suzlon Energy Ltd is Rs. 113,869.45 crores. The stock’s monthly return is -0.60%. Its one-year return is 222.82%. The stock is 3.10% away from its 52-week high.

Suzlon Energy Limited, an India-based provider of renewable energy solutions, specializes in manufacturing wind turbine generators (WTGs) and related components in various capacities. The company operates in around 17 countries spanning Asia, Australia, Europe, Africa and the Americas. 

The S133 can be scaled up to 3.0 megawatts (MW) based on the wind conditions at the location. The S120 2.1 MW comes in three variants with towers reaching up to 140 meters hub height. Suzlon Energy Limited also provides a range of services including operations and maintenance, leadership, optimization, digitalization, value-added products, and multi-brand maintenance services.

Rail Vikas Nigam Ltd

The Market Cap of Rail Vikas Nigam Ltd is Rs. 113,477.22 crores. The stock’s monthly return is -11.37%. Its one-year return is 232.98%. The stock is 18.88% away from its 52-week high.

Rail Vikas Nigam Limited (RVNL) is an Indian company dedicated to advancing rail infrastructure. RVNL specializes in carrying out a wide range of projects such as new lines, gauge conversion, railway electrification, bridges, workshops, and production units. 

The company is involved in every aspect of project development, from conceptualization to completion, working on a turnkey basis and overseeing design, cost estimation, contract procurement, project management, and commissioning. RVNL serves a diverse client base comprising central and state government bodies as well as public sector enterprises.

Mazagon Dock Shipbuilders Ltd

The Market Cap of Mazagon Dock Shipbuilders Ltd is Rs. 88,221.22 crores. The stock’s monthly return is -13.41%. Its one-year return is 94.61%. The stock is 33.97% away from its 52-week high.

Mazagon Dock Shipbuilders Limited specializes in the construction and repair of a wide range of vessels, including ships, submarines, and engineering products. The company focuses on the building of warships, submarines, and defense equipment. 

Its shipbuilding division is involved in constructing and refurbishing commercial vessels and naval ships, while its submarine and heavy engineering division handles the building, repair, and refitting of diesel and electric submarines. The company’s product offerings include shipbuilding and submarine construction.  

Dixon Technologies (India) Ltd

The Market Cap of Dixon Technologies (India) Ltd is Rs. 83,744.90 crores. The stock’s monthly return is 6.89%. Its one-year return is 186.94%. The stock is 2.89% away from its 52-week high.

Dixon Technologies (India) Limited is a company located in India that specializes in electronic manufacturing services. Operating within the Electronics Goods segment, the company offers design and manufacturing solutions for a wide range of products such as consumer durables, home appliances, lighting, mobile phones, security devices, set-top boxes, wearables, and medical equipment to customers globally. 

Additionally, the company provides repair and refurbishment services for LED TV panels. Dixon Technologies’ divisions cover various areas including Consumer Electronics, Home Appliances, Lighting Solutions, Mobile Phones, Security Surveillance Systems, Reverse Logistics, Medical Electronics, Set Top Boxes, and IT Hardware. 

Cochin Shipyard Ltd

The Market Cap of Cochin Shipyard Ltd is Rs. 48,566.03 crores. The stock’s monthly return is -21.95%. Its one-year return is 246.30%. The stock is 61.40% away from its 52-week high.

Cochin Shipyard Limited, an India-based company, specializes in shipbuilding and ship repair services. The company constructs various types of vessels and offers repairs, refits, and upgrades for ships. 

Their shipbuilding portfolio includes defense vessels like aircraft carriers and offshore patrol vessels, commercial vessels such as oil tankers and bulk carriers, and offshore vessels like platform supply and tug supply vessels. Additionally, they provide repair and maintenance services for defense and commercial ships, as well as marine engineering training and advanced solutions.

Godfrey Phillips India Ltd

The Market Cap of Godfrey Phillips India Ltd is Rs. 39,345.06 crores. The stock’s monthly return is 44.30%. Its one-year return is 271.46%. The stock is 11.61% away from its 52-week high.

Godfrey Phillips India Limited is an FMCG company based in India. Its main activities include manufacturing cigarettes and tobacco products, trading these products as well as other retail items, acquiring securities, and developing real estate. The company is also involved in the confectionery business and trading unmanufactured tobacco. 

Its business segments consist of Cigarette, tobacco, and related products; Retail and related products; and Others. The company offers various cigarette brands such as Four Square, Red and White, Cavanders, Tipper, and North Pole. In addition, it produces and distributes the Marlboro brand through a license agreement with Philip Morris.  

Cholamandalam Financial Holdings Ltd

The Market Cap of Cholamandalam Financial Holdings Ltd is Rs. 38,034.32 crores. The stock’s monthly return is 21.45%. Its one-year return is 73.62%. The stock is 2.44% away from its 52-week high.

Cholamandalam Financial Holdings Limited, an investment company based in India, has investments in its subsidiary, associate, joint venture, and other group companies. The company operates in two main segments: Financing and Insurance. Its subsidiaries include Cholamandalam Investment and Finance Company Limited (CIFCL), which provides various non-banking financial services such as vehicle finance and home loans. 

Cholamandalam MS General Insurance Company Limited (CMSGICL) offers a variety of insurance products like motor, travel, health, accident, and home insurance. Cholamandalam MS Risk Services Limited (CMSRSL) focuses on providing risk management and engineering solutions related to safety, health, and environment.

Kaynes Technology India Ltd

The Market Cap of Kaynes Technology India Ltd is Rs. 35,073.74 crores. The stock’s monthly return is 2.83%. Its one-year return is 166.97%. The stock is 4.79% away from its 52-week high.

Kaynes Technology India Limited is an Indian company specializing in end-to-end solutions and Internet of Things (IoT) enabled electronics manufacturing. The company provides conceptual design, process engineering, integrated manufacturing, and life cycle support to clients in various industries such as automotive, industrial, aerospace, defense, space, medical, railways, and IT. 

Their services include OEM-Turnkey Solutions for Box Build and Printed Circuit Board Assemblies (PCBAs), ODM services, and Product Engineering and IoT Solutions. They offer turnkey electronics manufacturing services for various components like PCBAs, cable harnesses, magnetics, and plastics, from prototyping to final product delivery.  

Inox Wind Ltd

The Market Cap of Inox Wind Ltd is Rs. 33,160.70 crores. The stock’s monthly return is 13.07%. Its one-year return is 411.88%. The stock is 2.23% away from its 52-week high.

Inox Wind Limited is an Indian company that offers comprehensive solutions for wind energy. They are involved in manufacturing and selling wind turbine generators (WTGs), as well as providing services such as erection, procurement, commissioning (EPC), operations and maintenance (O&M), and common infrastructure facilities for WTGs and wind farm development. 

The company’s product lineup includes models like Inox DF 93.3, Inox DF 100, and Inox DF 113. In addition to product offerings, they cater to various clients including independent power producers (IPPs), utilities, public sector undertakings (PSUs), corporates, and individual investors.  

Himadri Speciality Chemical Ltd

The Market Cap of Himadri Speciality Chemical Ltd is Rs. 31,643.36 crores. The stock’s monthly return is 34.38%. Its one-year return is 170.41%. The stock is 7.44% away from its 52-week high.

Himadri Speciality Chemical Limited is a company that specializes in the design and manufacture of specialty chemicals for a variety of industries such as textile, consumer care, oil and gas, and chemical intermediates. 

Operating in both domestic and international markets, the company has state-of-the-art manufacturing facilities located in India and China. Their product range includes coal tar pitch, carbon black, naphthalene and refined naphthalene, sulphonated naphthalene formaldehyde (SNF), and specialty oils.  

What Are Short Term Stocks?

Short-term stocks refer to shares that investors buy with the intention of holding them for a brief period, often a few months or less. The goal is to capitalize on quick price movements to generate immediate profits rather than long-term growth.  

Investors in short-term stocks typically engage in active trading and monitor market trends closely. This strategy requires a keen eye for timing and the ability to react swiftly to market fluctuations, as short-term gains can be influenced by news events and economic indicators.

Features Of Short Term Stocks

The key features of short-term stocks include quick price movements, making them ideal for investors looking to profit from rapid market fluctuations. These stocks are often traded within a few days, weeks, or months.

1. Higher Volatility: Short-term stocks experience more frequent price fluctuations, offering both opportunities and risks for quick profits. Investors must closely monitor market trends and news to capitalize on these changes.
2. Increased Liquidity: Short-term stocks tend to be highly liquid, meaning they can be easily bought or sold. This allows investors to enter and exit positions quickly, taking advantage of market movements.
3. Market Sensitivity: These stocks are often more sensitive to market news, economic reports, or earnings announcements. Short-term traders rely on this sensitivity to make fast decisions and profit from immediate reactions.
4. Technical Analysis Focus: Investors often rely on technical analysis, such as chart patterns and indicators, to predict short-term stock movements. This differs from long-term strategies, which focus more on company fundamentals.
5. Tax Implications: Profits from short-term stock investments are subject to higher tax rates as they are treated as short-term capital gains, reducing the overall returns compared to long-term investments.

Best Short Term Stocks Based On 6 Month Return

The table below shows the best short-term stocks based on a 6-month return.

Top Short Term Stocks In India Based On 5 Year Net Profit Margin

The table below shows the top short-term stocks in India based on 5-year net profit margin.

Best Short Term Stocks Based On 1M Return

The table below shows the best short-term stocks based on a 1-month return.

High Dividend Yield in Short Term Stocks In India

The table below shows the high dividend yield in short-term stocks in India.

Historical Performance Of Best Short Term Stocks In India

The table below shows the historical performance of best short term stocks in India based on 5-year CAGR.

Factors To Consider When Investing In Short Term Stocks India

The factor to consider when investing in short-term stocks in India is market volatility. Short-term investors need to be prepared for rapid price swings and should monitor the market closely to capitalize on quick opportunities.

1. Liquidity: Ensure the stock has high liquidity so it can be easily bought and sold without significant price movement. Liquid stocks allow for quick entry and exit, which is crucial for short-term trades.
2. Market Timing: Timing is critical in short-term stock trading. Investors need to pay attention to technical indicators, market trends, and economic news that can influence short-term price movements.
3. Risk Management: Implementing stop-loss orders is essential in short-term trading to minimize losses. Short-term investments can be volatile, so it’s important to protect capital by managing risk effectively.
4. Technical Analysis: Short-term traders rely heavily on technical analysis to predict price movements. Studying charts, patterns, and indicators like moving averages and RSI helps investors make informed decisions for quick trades.
5. Transaction Costs: Frequent buying and selling in short-term trading can incur high brokerage fees and transaction costs. It’s important to consider these costs, as they can eat into profits, especially with smaller price movements.

How To Invest In Best Short Term Stocks?

To invest in the best short-term stocks, choose liquid stocks with high trading volumes. Use technical analysis to spot trends and time trades. Set entry, exit points, and stop-loss orders to manage risk. With Alice Blue as your stockbroker, you can benefit from fast execution and low brokerage fees, ideal for short-term trading.

Impact Of Market Trends On Short Term Stocks

Market trends have a significant impact on short-term stocks as they drive quick price movements. Investors closely monitor trends to make fast decisions, capitalizing on short-term price fluctuations and momentum in the market.

Positive market trends, such as favorable economic reports or strong earnings results, can lead to sharp price increases, providing short-term investors with quick profit opportunities. However, these gains can be short-lived, requiring constant attention.

Conversely, negative market trends, such as geopolitical events or market downturns, can cause rapid price drops. Short-term investors need to react swiftly to mitigate losses during such periods.

How Short Term Stocks Perform in Economic Downturns?

Investors often scrutinize the performance of these stocks when market conditions worsen. Typically, short-term stocks may experience higher volatility as traders react swiftly to negative news. This rapid selling can lead to significant price fluctuations, reflecting the uncertainty and panic that accompany economic challenges.  

Additionally, the performance of short-term stocks can vary based on the industry. Some sectors may prove more resilient, while others suffer greatly. Thus, understanding market trends and sectors is crucial for effectively navigating short-term investment strategies in tough economic times.

Benefits Of Best Short Term Stocks

The primary benefit of investing in the best short-term stocks is the potential for quick profits. Short-term stocks offer rapid price movements, allowing investors to capitalize on market fluctuations within a short timeframe.

1. Quick Returns: Short-term stocks enable investors to earn profits faster compared to long-term investments. By taking advantage of price swings, traders can realize gains within days or weeks rather than waiting years.
2. Flexibility: Investors have the flexibility to adjust their portfolios frequently. They can quickly move in and out of stocks based on market conditions, optimizing their chances for profit in a dynamic market.
3. Diversification Opportunities: Short-term trading allows investors to diversify their portfolio across multiple sectors and stocks, minimizing the risk associated with a single stock while maximizing potential gains from different investments.
4. Use of Leverage: Many short-term traders use leverage to amplify their returns. With the right strategy, leveraging allows investors to trade larger positions with less capital, increasing potential profits in a short time.
5. Capitalizing on Market Trends: Short-term stocks allow investors to take advantage of current market trends and news events, turning volatility into an opportunity for rapid gains. This agility is key in fast-moving markets.

Risks Of Investing In Short Term Stocks

The main risk of investing in short-term stocks is market volatility. Prices can fluctuate rapidly due to market sentiment, economic data, or news, which may lead to significant losses if trades aren’t well-timed.

1. Higher Transaction Costs: Frequent trading incurs higher brokerage fees, taxes, and commissions. These costs can significantly reduce profit margins, especially for small price movements, making short-term investing more expensive than long-term strategies.
2. Increased Stress: Constantly monitoring the market and making quick decisions can lead to high levels of stress. The fast-paced nature of short-term investing requires continuous attention, which can overwhelm some investors.
3. Emotional Trading: Short-term investors may fall prey to emotional decisions, driven by fear or greed. This can lead to impulsive actions, such as exiting too early or holding on to losing positions for too long.
4. Loss of Focus: Overtrading or trying to chase multiple stocks at once can lead to a lack of focus, increasing the chance of making mistakes. It’s crucial to stay disciplined and avoid spreading attention too thin.
5. Potential for Significant Losses: The fast-moving nature of short-term stocks increases the risk of rapid losses, especially if the market moves against your position unexpectedly. Without proper risk management, these losses can quickly escalate.

Short Term Stocks GDP Contribution

Short-term stocks contribute to GDP by driving liquidity and market activity. Active trading in short-term stocks increases transaction volumes, supporting stock exchanges, brokerage firms, and other financial services, which in turn boosts economic growth. High-frequency trading also ensures better price discovery, improving market efficiency.

Moreover, short-term investments provide companies with the necessary capital through secondary market transactions, although indirectly. The rapid buying and selling of shares enhance market vibrancy, leading to increased investor confidence. This continuous flow of capital can spur innovation and business expansion, further contributing to the overall economy.

Who Should Invest In Short Term Stocks?

Investing in short-term stocks is ideal for those seeking quick profits and who can actively monitor the market. It suits investors with a higher risk tolerance and the ability to make fast, informed decisions based on market movements.

1. Experienced Traders: Individuals with deep market knowledge and experience in technical analysis are best suited for short-term trading, as it requires quick decision-making and an understanding of market trends and patterns.
2. Risk-Tolerant Investors: Those comfortable with higher levels of risk and volatility should consider short-term stocks, as the rapid price fluctuations can lead to both quick gains and losses.
3. Active Market Participants: Investors who can dedicate time to actively monitoring stock prices, news, and economic data are ideal for short-term trading, as it requires constant attention and rapid responses.
4. Speculative Investors: Individuals who thrive on speculative market movements and are looking to capitalize on short-term opportunities driven by news or market sentiment will benefit from short-term stocks.

FAQs – Best Short Term Stocks In India

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.