Can I trade or invest Rs 100 in the share market of India?

Short Answer

You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.

Detailed Answer

What are Stock Markets?

Stock markets are a marketplace where stocks of companies are traded (bought and sold). Here individuals like you and I can buy any number of shares for trading as well as for investment purposes. In India there are two primary markets, they are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The NSE has over 1600 companies whereas the BSE has over 5400 companies listed on it.

You can buy and sell any stock from these exchanges with the help of a Trading Account and store them in your Demat Account. Stock markets houses traders, speculators, hedgers as well as investors. Traders and speculators buy and sell stocks frequently to main a quick gain between the spread. Similarly, investors buy and hold to these stocks with a long-term view of the company as well as the sector. Now the question remains how much money do you require in order to enter the stock market. Find it out in the next part.

Can you start trading or investing with Rs 100?

In a word, YES! you can trade or invest in the Indian stock market with as little as Rs 100 but there are some limitations to that. In the Indian stock markets, there are no minimum funds required to enter. Therefore an individual with a Demat & Trading account can start to take trades with a capital of as low as say Rs 100. But the main limitation to that is he can only buy companies that are less than Rs 100/ per share.

In the U.S there is a concept of fractional shares where you can buy any fraction of a share. For example, if you want to buy half of a share of Apple, that is possible in the U.S. but that is not the case in India.

In the Indian markets, the minimum number of shares that you need to purchase is 'one'. So with a capital of Rs 100, you can buy any stock which is currently trading below Rs 100. For example, the stock of Vodafone Idea is trading around Rs 10, so you can buy as many as 10 shares, excluding the brokerage or other charges.

Similarly, if you want to buy a stock of Reliance Industries, which is the biggest company in India, in terms of market cap, you cannot do that. As one stock of Reliance Industries is worth more than Rs 2,300.

The alternative ways to invest with Rs 100.

By now you have learned that with Rs 100, you cannot buy shares of any company whose shares are more than Rs 100. But owning a part of the stock that is more than Rs 100 is possible by an alternative route.

This can be done through Mutual Funds. A mutual fund is a professionally managed fund, which has multiple stocks of companies within itself. For example, if you buy one unit of a ‘Nifty50 Mutual Fund’ for Rs 90, it will contain all the 50 stocks of the Nifty in the same proportion. Hence you will indirectly own the stocks and get the same kind of returns but at a much lower price. With Mutual Funds, you are not limited with the stocks that are trading below Rs 100 or a certain price point and get a better-diversified portfolio of stocks altogether.

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Categories: Stock Market
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Related FAQs

How will the T+1 settlement cycle affect Indian stock markets?

The T+1 settlement cycle is set to bring in many advantages to traders as investors as there will be an increase in liquidity and trading volume. There will be a subsequent reduction in the brokerage defaults and settlement auctions. On the other hand, there could be some problems like mismatch in liquidity among exchanges, FPI complications, etc.

Can I trade when markets are closed or shut?

No, it is not possible to trade when stocks markets are closed. However, you can place an After Market Order(AMO), which will be executed after the markets open on the consecutive trading day. These orders can be modified any number of times until they get executed,

Can I invest 100 rupees in share market?

Yes, one can invest in the share market with 100 rupees. So, you can start investing with as little as Rs.100 only. Isn't that interesting? There is no reason as to why one can’t invest in the stock market for 100 rupees.

What is T+1 Settlement Cycle for Stocks in India?

The Securities Exchange Board Of India (SEBI) has proposed a new 'T+1' settlement cycle, under which shares will be settled/transferred from the sellers' Demat account to the buyers' Demat account in one day or under 24 hours. This will be implemented on an optional basis on the exchanges from January 1, 2022. Exchanges like NSE and BSE will have the liberty to select any script that they want to shift into the new regime.

What is the role of FII and DII in the Indian Share market

FII and DII are two influential participants in the Indian share market. FII are foreign investors who are not located in India whereas DII constitute domestic investors who are housed within India. These investors consist of Mutual Funds, Pension Funds, and other investors who determine the direction of the Indian stock market in the short term.

What are Stock Market Timings in India? Normal Trading Hours

The operating hours for the Indian stock market is from 9 AM to 4 PM while remaining off on government holidays and weekends.

Can NRI invest in Indian stock market?

Yes, NRIs can invest in Indian stock market. It is essential for the individual to check if he is considered as NRI or not according to the norms of the government. If yes, only then he can invest. There are also certain rules and regulations that must be followed.

Can I do stock trading in India without a broker?

To buy and sell stocks in the Indian stock market, you will need a demat and trading account. A stockbroker is necessary to trade stocks because the broker will provide the trading account through which you will place your trades.

How to find good companies as there are many publicly listed companies in the Indian stock market?

To find good companies out of the thousand companies listen on the Indian stock exchange, you can filter stocks on the basis of certain parameters such as Market cap, Debt to Equity, Dividend payouts, Revenue and Profits growth, etc. You can easily use an online stock screener to find out these stocks.

How much money do I need to start Stock Trading in India?

Its all based on the share you wish to purchase. You can invest one rupee or two rupees in the stock market while there is no maximum cap on your investment.