Halal Stocks in India (2024) (2024)

Last Updated on Mar 26, 2024 by Harsh*t Singh

Halal stocks in India refer to shares of companies whose business activities comply with Islamic principles, making them suitable for investment by Muslims and others interested in ethically responsible investing. The concept of “halal” extends beyond food to include financial and business practices that are permissible under Sharia law. In this blog, we have charted down the list of halal shares in India.

List of halal stocks in India (Nifty 50)

Note: The list of halal stocks in India are selected from Nifty 50 and are not sorted based on any criteria.

Halal shares are shares from companies compliant with Sharia principles stipulated by Shariah Scholars. Shariah compliant funds work along the lines of the Shariah Law relating to finance. Companies with operations opposing Shariah principles, such as selling pork, alcohol, drugs, gambling, or the sale of weapons, are prohibited under Shariah Law and deemed unfit for investment.

Key principles of Shariah investment

The company’s primary business must be halal (according to Islamic law – Shariah). Under Shariah law, companies engaged in gambling, alcohol, tobacco, etc., are excluded.

• The total ‘Debt to Equity ratio’ should be lower than 33%.
• Shariah indices exclude companies with Accounts Receivables/Market equity value greater than or equal to 49 %.
• In Shariah compliant companies, revenues from non-compliant activities are permissible only if the revenue from the non-permissible income is less than 5%.
• Shariah Boards laid down these principles, and 935 companies are compliant with Shariah principles in the Nifty index.

No. of Shariah compliant halal stocks in Nifty index

Conclusion

Halal investing necessitates making investment decisions in alignment with Shariah principles. As a faith-based approach to investment management, halal investing is frequently perceived as ethical or socially responsible investing, in stocks adhering to Shariah Principles. Moreover, with the help of Tickertape stock screener, you can evaluate these halal stocks on 200 plus filters, to identify stocks aligning with your financial goals.