Halal Stocks in India

What makes a stock halal (Sharia-compliant)?

A stock is generally treated as halal when owning a share of the underlying business is permissible under Islamic principles. In practice this is assessed with two screens. The business-activity screen looks at what the company actually does: companies whose core revenue comes from conventional interest-based banking, alcohol, gambling, tobacco, pork or adult entertainment are excluded, because that income is not permissible. The financial-ratio screen then looks at the balance sheet, against numbers. The widely used standards cap interest-bearing debt at about 33% of market capitalisation or total assets, cap interest-bearing cash and investments at the same ~33%, and cap income from impermissible sources at about 5% of revenue, to be purified by donation. The exact cut-offs differ by standard — AAOIFI, Dow Jones, MSCI and FTSE variously use 25%, 30% or 33%, and disagree on whether debt is measured against assets or market cap — so a company sitting near a line can be compliant under one standard and not another.

The compliance verdict shown on this site is a specialist provider's rating, recorded daily; Ansaar does not compute the ratios itself, and the numbers above describe the standards the industry applies rather than a screen we run. See the two-step screen explained for a worked example.

Only companies that pass both stages are flagged as Sharia-compliant. This matters for Indian Muslim investors who want to participate in NSE equity markets while keeping their holdings consistent with their faith. It is worth understanding that compliance is not permanent: as a company raises debt, changes its business mix, or its interest income shifts, it can move between compliant, questionable and non-compliant. For that reason the status of any stock should be re-checked over time rather than assumed to be fixed, and this list is a research starting point rather than a settled verdict.

Screen and research further

Build your own shortlist with the halal filter, learn the principles behind Sharia-compliant investing, or read common questions.

• Halal ratings of NSE companies, by sector
• Halal stock screener — filter NSE stocks by Sharia compliance
• Guide: What makes a stock halal? The two-step screen
• Guide: Halal investing in India
• Guide: Riba (interest) and why it matters
• Guide: Zakat on stocks and investments
• Free halal investing course — all lessons