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Foreign Institutional Investors (FIIs) play a pivotal role in India’s capital markets. Their inflows and outflows often decide the short-term direction of indices like Nifty and Sensex. However, investing in an emerging economy like India also exposes FIIs to risks such as:
To manage these risks, FIIs actively use commodities as a hedging tool.
When FIIs expect volatility in equities, they often take positions in gold futures on MCX.
India imports over 80% of its crude requirements. Rising crude prices mean inflationary pressures, which hurt equity markets. FIIs hedge this by:
Metals like copper, aluminium, and zinc are highly cyclical.
Though not as liquid as metals or energy, agri-commodities on NCDEX provide FIIs a tool to manage inflation-linked risks. Rising food inflation can hurt consumer companies, so FIIs hedge through contracts in commodities like soybean or chana.
FIIs use regulated platforms like:
With SEBI oversight, these platforms ensure transparency and liquidity for hedging activities.
When FIIs hedge via commodities:
For example, in August 2025, FII outflows of nearly ₹47,000 crore from equities coincided with higher participation in gold and crude futures, showing how hedging balances exposure.
While FIIs use sophisticated hedging models, retail and HNI investors can also benefit from commodity diversification. With Swastika Investmart, you get:
👉 Open your commodity enabled Demat & Trading account with Swastika Investmart today.
Q1. Why do FIIs use commodities for hedging in India?
To balance risks from currency fluctuations, inflation, and global volatility while maintaining equity exposure.
Q2. Which commodities are most preferred by FIIs?
Gold, crude oil, and base metals like copper and aluminium are most widely used.
Q3. Do FIIs trade directly on Indian commodity exchanges?
Yes, through SEBI-regulated platforms like MCX and NCDEX, often via sub-accounts or participatory notes.
Q4. How does FII hedging impact retail investors?
It improves market liquidity, price discovery, and offers new opportunities for retail traders.
Q5. Can Indian investors also use commodities for hedging?
Yes, investors can diversify portfolios using commodities to reduce equity-linked risks.
FIIs are not just equity players—they are active risk managers who use commodities to stabilize their India exposure. By trading in gold, crude, metals, and agri-commodities, they hedge against inflation, currency moves, and global shocks, ensuring long-term portfolio balance.
For Indian investors, understanding these FII strategies can unlock smarter ways to invest.
👉 Experience AI-powered commodity trading with Swastika Investmart and step into the future of diversified investing.
In the world of algorithmic trading, having a well-structured algo trading strategy is crucial for success. A profitable automated trading strategy can help you execute trades with precision, minimize risks, and optimize profits. In this blog, we will guide you through the steps to develop a winning algorithmic trading strategy, along with key factors to consider.
Before creating an algo trading strategy, you need to clarify your objectives:
Selecting the right algo trading software is essential for successful automated trading. One of the most reliable platforms is Swastika’s Logic Bag, which offers advanced algorithmic trading features, seamless execution, and user-friendly tools. Other platforms include:
A good algo trading strategy is based on historical data and real-time market conditions. Some common algorithmic trading strategies include:
Use backtesting to evaluate the performance of your trading algorithm before deploying it live.
A successful algo trading system should have built-in risk controls:
Even after deploying a profitable algo trading strategy, continuous monitoring and optimization are necessary. Adjust parameters based on market conditions and performance analytics.
Yes! Platforms like Swastika’s Logic Bag allow traders to use no-code algo trading without programming skills.
The best-automated trading strategy depends on your goals. Trend-following strategies work well for long-term traders while scalping strategies suit those looking for quick profits.
It depends on the broker and the market. Some platforms allow low-cost algo trading, while others require a higher initial investment.
Yes, SEBI-approved algo trading is legal in India, but you must use authorized algo trading platforms.
Developing a profitable algo trading strategy requires careful planning, testing, and optimization. By choosing the right trading algorithm, platform, and risk management techniques, you can enhance your chances of success in algorithmic trading. Start by backtesting your trading strategy, monitoring results, and refining it to stay profitable.
If you are serious about automated trading, consider using Swastika’s Logic Bag, a powerful algo trading platform, to enhance your trading efficiency. Happy trading!
In today's fast-paced financial markets, traders rely on algo trading to gain a competitive edge. But why do traders trust so much? The answer lies in its accuracy, speed, and data-driven approach. Let's explore the key reasons why professional and retail traders prefer automated trading systems over manual trading.
Markets move in milliseconds, and human traders can't react as fast as computers. Algo trading software executes trades in microseconds, ensuring traders never miss profitable opportunities. Whether it's high-frequency trading (HFT) or scalping strategies, automation gives traders a distinct advantage.
One of the biggest reasons traders lose money is due to fear and greed. Algorithmic trading bots remove emotions from the equation, following predefined trading strategies without hesitation. This results in disciplined and consistent execution, reducing impulsive decisions.
Traders trust algo trading systems because they can test strategies on historical stock market data before deploying them live. Backtesting in algo trading helps identify profitable patterns, refine entry/exit points, and optimize risk management.
Manual trading is prone to human errors, such as incorrect order placement or mistimed entries. Automated trading systems ensure high accuracy in trade execution, reducing costly mistakes. Precision matters, especially in options trading, forex trading, and intraday trading.
Institutional investors, hedge funds, and even retail traders trust algorithmic trading software because it can process massive trade volumes seamlessly. Unlike manual traders, who might struggle with multiple trades, algo trading bots can manage thousands of orders at once.
Another reason traders trust automated trading platforms is their ability to be customized. Traders can code their trading strategies using Python for algo trading, adjust risk parameters, and scale their operations based on market conditions.
In India, SEBI regulates algorithmic trading, ensuring fair practices. Many stock brokers offer algo trading APIs, allowing traders to build their custom trading algorithms while staying compliant with regulations.
Unlike human traders, who need rest, algo trading systems can monitor global markets 24/7. This is especially useful in cryptocurrency trading, where markets never close.
Though setting up algorithmic trading software requires an initial investment, it eventually reduces transaction costs by executing orders at optimal prices. Low-latency trading algorithms ensure minimal slippage and better returns.
Traders trust algo trading because it offers speed, precision, automation, and efficiency—all crucial for success in today’s markets. Whether you're a retail trader, institutional investor, or day trader, embracing automated trading strategies can significantly enhance your trading performance. If you haven’t explored algorithmic trading yet, now is the perfect time to start!
Algo trading in India has been a topic of intense discussion among traders and investors. Recently, there have been rumors about the SEBI ban on algo trading, causing confusion and concern. But is SEBI banning algo trading completely? Let’s dive into the details and clear up the misconceptions.
SEBI has introduced a comprehensive regulatory framework for algorithmic trading (algo trading) in India, allowing retail investors to participate, but with enhanced oversight and stricter rules for brokers and algo trading providers. The framework includes unique identifiers for orders and registration requirements to ensure transparency and fair market practices.
SEBI has now opened the doors for retail investors in algo trading, a space previously dominated by institutional investors. However, retail participants must adhere to SEBI’s compliance requirements and execute trades through registered stockbrokers offering algo trading.
To enhance transparency, SEBI has mandated unique identification numbers for all algo trade orders. This helps track the origin of each trade and prevents market manipulation through automated strategies.
Stock brokers offering algo trading services must now register and get approval for their algorithmic trading strategies. Additionally, brokers must ensure that their clients are aware of the risks associated with high-frequency trading (HFT).
Third-party algo trading platforms in India must now comply with SEBI’s strict regulations. Platforms providing algorithmic trading software need to register with the regulator and ensure their strategies are pre-approved before execution.
SEBI has raised concerns about unregulated algo trading due to the following reasons:
Market Volatility – Unchecked algo trading can trigger large fluctuations in stock prices.
Unfair Advantage – Traders with access to sophisticated algo trading software can gain an unfair edge over manual traders.
Flash Crashes – High-frequency trading (HFT) has been linked to sudden market crashes due to automated sell-offs.
If you are using algo trading software in India, here’s how these regulations might impact you:
If you are engaged in algo trading in NSE and BSE, here are some steps you should take:
While SEBI is not imposing a complete ban on algo trading in India, it is making efforts to regulate automated trading and ensure fair market participation. Traders should be aware of the new guidelines and adapt accordingly to continue using algorithmic trading in India without any legal issues.
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Can the Union Budget be the turning point investors are waiting for? With the Indian stock market facing a short-term bearish trend, all attention is on the upcoming budget for clues of a potential revival. Let’s explore how these changes could impact the market and revive investor confidence.
Since September 2024, the Indian stock market has been experiencing a short-term bearish trend, primarily driven by the economic slowdown, along with other contributing factors. To get out of this slump and start growing again, something big needs to happen. The Union Budget offers hope and could be crucial in restoring investor confidence.
To reverse the bearish trend, boosting domestic consumption—a key driver of economic growth—is essential. While demand in rural areas is recovering, urban demand still needs support. Increasing disposable income through tax exemptions or creating more jobs could provide the significant boost. There’s talk that the government might raise the tax exemption limit to ₹10 lakh, which might boost overall consumption and help the economy.
Government capital expenditure (capex) has been a key driver of growth, but it has slowed down recently because of the election cycle, affecting fiscal spending targets. A renewed focus on sectors like railways and defense could give the necessary momentum.
The Production Linked Incentive (PLI) scheme has helped certain industries grow, but stronger efforts are needed to attract private investment. Since consumption, private investment, and government spending are the three main pillars of GDP growth, all of them need to be addressed in the upcoming budget for a strong recovery.
The upcoming Union Budget is crucial for getting India’s growth back on track. By focusing on boosting consumption, increasing government spending (capex), and supporting key sectors like healthcare, real estate, and green energy, the government can lay the groundwork for a wide-reaching recovery. The question remains: will these measures be bold enough to reverse the current bearish trend and spark a long-term bull run? Investors should stay tuned—this budget could be the key to a more promising and prosperous market ahead.
Candytoy Corporate Pvt Ltd (CTC), a prominent manufacturer of promotional toys and confectionery based in Indore (M.P), has successfully raised INR 110 crore in a series A funding round, which is backed by a group of domestic investors, high-net-worth individuals (HNIs), angel investors and institutional partners. Central India's leading Merchant banker Swastika Investmart Ltd was lead advisor to the transaction. This major investment will play a key role in scaling up the company’s operations and increasing its market presence globally. Its Series A round from a group of domestic investors including Abakkus Asset Managers, Girik Capital, Param Capital Research, Strategic Sixth Sense, and Viney Equity Market. With this funding, CTC becomes first Indian toy manufacturing company to raise private equity funding of above 100 cr.
The finding will be directed towards enhancing CTC’s manufacturing capabilities and further expanding its team to support its rapidly growing business. As part of its long-term vision, CTC plans to open new manufacturing units, aligning with the Indian Government’s ‘Make in India’ initiative, and strengthening its domestic production.
“We are entering an incredibly exciting phase for Candytoy,” said Gaurav Mirchandani, Director, Candytoy Corporate. “This INR 110 crore series A funding will not only bolster our growth but also allow us to continue investing in the talented workforce that has been key to our success. With these resources, we are ready to expand our operations and serve new business orders globally.
This new funding will enable the company to continue growing its production infrastructure and meet increasing demand from international markets. “Our focus is on continuing to innovate and diversify our product offerings. The additional funding will help us do just that while maintaining our high-quality standards, “added Mirchandani.
Sunil Nyati, Managing Director of Swastika Investmart Limited, which led the funding round, who facilitated the deal, commented, Candytoy’s exceptional growth potential and its ability to adapt to market trends makes it a great opportunity. He added, with over 2,000 manpower CTC is poised to further solidify its position as a leader in the candy toy and promotional toy industry, expanding its reach and fostering long-term growth across its global markets.
CTC has a strong foothold in the international market, supplying products to over 40 countries across three continents. Its client base includes major brands like Colgate, Puma, MTR, Bournvita, Yellow Diamond, Vistara Airlines, and Air Asia. The company also recently partnered with Reliance Retail to enter consumer market. With a production capacity of 10.5 million candy toys per day, CTC operates from six manufacturing units located in Indore, Delhi, Hyderabad, and Jebel Ali, Dubai, in addition to collaborating with 11 contractual manufacturers.
In contrast to the same period last year (Q2FY24), Bajaj Auto's Q2FY25 financial results demonstrate consistent increase across key measures. Here is a brief summary of the figures:
Q2FY25: ₹2,005 crore
Q2FY24: ₹1,836 crore
Estimates: ₹2,228 crore
Despite falling short of the estimated ₹2,228 crore, Bajaj Auto’s net profit rose by 9.2% compared to last year.
Q2FY25: ₹13,127 crore
Q2FY24: ₹10,777 crore
Estimates: ₹13,270 crore
Bajaj Auto achieved a significant 21.8% growth in revenue compared to Q2FY24, though it came slightly below the estimated ₹13,270 crore.
Q2FY25: ₹2,652 crore
Q2FY24: ₹2,133 crore
Estimates: ₹2,704 crore
EBITDA grew by 24.3% year-over-year but was marginally lower than the forecast of ₹2,704 crore.
Q2FY25: 20.2%
Q2FY24: 19.8%
Estimates: 20.4%
The EBITDA margin has shown improvement, increasing to 20.2%, close to the market estimate of 20.4%.
Overall, Bajaj Auto's financial performance in Q2FY25 demonstrates consistent growth in revenue, profitability, and margins compared to the previous year. However, it fell slightly short of analysts' estimates in all categories. This update reflects a robust performance for the company despite minor shortfalls in hitting projected targets.
Source: CNBC
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