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

Zomato Ltd

The Market Cap of Zomato Ltd is Rs. 2,60,860.60 crores. The stock’s monthly return is 0.2%, and its one-year return is 119.88%. The stock is 10.86% away from its 52-week high.

Zomato Ltd is a leading online food delivery and restaurant discovery platform. Founded in 2008, the company connects customers with restaurants, offering a wide range of food delivery, dining, and related services through its digital platform.

Zomato began as a restaurant listing and review website but quickly evolved into a global leader in food delivery and online ordering. The company continues to innovate in the food tech space, expanding its presence in multiple countries.

Dixon Technologies (India) Ltd

The Market Cap of Dixon Technologies (India) Ltd is Rs. 1,08,118.89 crores. The stock’s monthly return is 15.08%, and its one-year return is 177.15%. The stock is 7.02% away from its 52-week high.

Dixon Technologies (India) Ltd is a leading provider of electronic manufacturing services (EMS). The company specializes in manufacturing consumer electronics, home appliances, lighting products, and mobile phones for some of the biggest global brands.

Founded in 1993, Dixon Technologies has grown rapidly to become a top player in the Indian electronics manufacturing sector. The company offers end-to-end solutions, including design, manufacturing, assembly, and testing, with a focus on quality and innovation.

Lupin Ltd

The Market Cap of Lupin Ltd is Rs. 98,560.35 crores. The stock’s monthly return is 3.79%, and its one-year return is 69.14%. The stock is 6.57% away from its 52-week high.

Lupin Ltd is a global pharmaceutical company that develops, manufactures, and markets branded and generic drugs in various therapeutic areas. The company is known for its focus on high-quality, affordable medicines and its global reach.

Established in 1968, Lupin has built a strong presence in over 100 countries. The company focuses on delivering value through its innovation and commitment to improving healthcare globally. Lupin is a leader in the generics market.

Persistent Systems Ltd

The Market Cap of Persistent Systems Ltd is Rs. 98,127.30 crores. The stock’s monthly return is 9.38%, and its one-year return is 72.61%. The stock is 6.9% away from its 52-week high.

Persistent Systems Ltd is a global software services company offering digital transformation and technology services. The company specializes in cloud computing, data analytics, artificial intelligence, and other IT services for a wide range of industries.

Founded in 1990, Persistent Systems has become a trusted partner for organizations seeking to innovate and drive growth through technology. The company’s deep expertise in various technological domains has helped it develop leading-edge solutions.

PB Fintech Ltd

The Market Cap of PB Fintech Ltd is Rs. 96,668.83 crores. The stock’s monthly return is 20.05%, and its one-year return is 160.37%. The stock is 7.36% away from its 52-week high.

PB Fintech Ltd, the parent company of Policybazaar, is a leading online platform for insurance and financial products. It offers consumers an easy way to compare and purchase insurance policies, loans, and financial services digitally.

Founded in 2008, PB Fintech revolutionized the Indian insurance market by making insurance comparison and purchase simple and transparent. The platform has gained significant market share, becoming a one-stop-shop for all financial product needs.

BSE Ltd

The Market Cap of BSE Ltd is Rs. 75,110.87 crores. The stock’s monthly return is 14.63%, and its one-year return is 135.85%. The stock is 7.13% away from its 52-week high.

BSE Ltd, formerly known as the Bombay Stock Exchange, is one of the oldest and largest stock exchanges in India. The BSE provides a platform for trading various financial instruments, including equities, derivatives, and commodities.

Founded in 1875, BSE has been instrumental in shaping the Indian capital markets. Over the years, the exchange has adopted cutting-edge technology, offering a reliable and transparent trading platform to market participants.

Kalyan Jewellers India Ltd

The Market Cap of Kalyan Jewellers India Ltd is Rs. 74,670.76 crores. The stock’s monthly return is -1.31%, and its one-year return is 109.73%. The stock is 9.2% away from its 52-week high.

Kalyan Jewellers India Ltd is one of India’s largest jewelry retailers, offering a diverse range of gold, diamond, and other precious jewelry. The company operates through a vast network of stores both within India and internationally.

Founded in 1993, Kalyan Jewellers has earned a strong reputation for quality and craftsmanship. The company’s customer-centric approach and extensive product range have made it a household name in the Indian jewelry industry.

Coforge Ltd

The Market Cap of Coforge Ltd is Rs. 62,890.28 crores. The stock’s monthly return is 12.44%, and its one-year return is 49.68%. The stock is 4.29% away from its 52-week high.

Coforge Ltd is a global IT services and consulting company that offers solutions in areas like digital transformation, automation, cloud services, and IT consulting. The company focuses on providing innovative technology solutions for diverse industries.

Founded in 1992, Coforge has expanded its global footprint, serving clients in over 30 countries. The company is known for its expertise in delivering technology-driven business solutions, helping businesses optimize their operations and achieve their goals.

One 97 Communications Ltd

The Market Cap of One 97 Communications Ltd is Rs. 61,577.54 crores. The stock’s monthly return is 5.95%, and its one-year return is 55.52%. The stock is 8.18% away from its 52-week high.

One 97 Communications Ltd, the parent company of Paytm, is a leading digital payments and financial services company in India. It offers a variety of services, including mobile wallets, bill payments, and financial products.

Founded in 2010, Paytm transformed the way Indians make payments, providing a platform for online transactions and mobile money. The company continues to innovate in the financial services space, expanding into lending, insurance, and wealth management.

Lloyds Metals And Energy Ltd

The Market Cap of Lloyds Metals And Energy Ltd is Rs. 60,822.08 crores. The stock’s monthly return is 19.37%, and its one-year return is 90.07%. The stock is 0.41% away from its 52-week high.

Lloyds Metals And Energy Ltd is a major player in India’s iron ore mining and energy sectors. The company is involved in extracting, processing, and trading iron ore, as well as generating power for its industrial operations.

Founded in the 1970s, Lloyds Metals has grown into a significant supplier of iron ore in India. It also plays an essential role in the country’s energy sector, ensuring a steady supply of power for its mining and industrial needs.

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.