List of Top Halal Stocks in India: Shariah-Compliant Shares on NSE (2025)

Last Updated on May 28, 2025 by vanessa sequeira

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, along with details of Shariah compliance, key principles, what makes a stock halal, and more.

List of Halal Stocks in India (Nifty 50)

Note: The list of halal stocks in India is selected from Nifty 50 and is not sorted based on any criteria. The data on this list was taken from the Tickertape Stocks Screener on 27th May 2025.

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

Overview of the Halal Stocks in India

Reliance Industries Ltd

Reliance Industries is a major Indian conglomerate with diversified interests in petrochemicals, refining, oil, retail, and digital services. It is a leader in the Indian market with global operations, especially known for its telecom venture, Jio, and extensive retail footprint.

Tata Consultancy Services Ltd (TCS)

TCS is a global IT services and consulting giant, offering solutions in cloud computing, AI, cybersecurity, and enterprise software. It is part of the Tata Group and operates in over 40 countries, serving major corporations across industries.

Infosys Ltd

Infosys is a multinational IT services and consulting company based in India, known for its expertise in digital transformation, artificial intelligence, and software development. It serves clients worldwide and plays a vital role in global outsourcing and technology innovation.

Hindustan Unilever Ltd (HUL)

HUL is India’s leading fast-moving consumer goods (FMCG) company, offering products in personal care, home care, and food & beverages. A subsidiary of Unilever, it owns iconic brands like Dove, Surf Excel, and Lipton, reaching millions of Indian households.

HCL Technologies Ltd

HCL Technologies is a global IT services company from India, specializing in digital, cloud, cybersecurity, and engineering services. It supports enterprises in modernising technology infrastructure and innovation, with a strong global delivery network across industries.

What Are Halal Stocks?

Halal stocks refer to shares of companies whose activities and financial structures align with Islamic principles (Shariah law). These shariah-compliant stocks in india are considered ethical investments for individuals who follow Islamic guidelines. Shariah prohibits certain industries and practices, such as those involving alcohol, gambling, pork products, and interest-based financial activities. Therefore, companies operating in these industries are excluded from the halal stock universe.

For example, halal stocks in India might include businesses focused on technology, healthcare, or manufacturing, provided they meet the required financial and ethical criteria.

What Is Shariah Compliance?

Shariah compliance means adhering to Islamic laws and principles. In the context of investments, this includes avoiding prohibited activities, maintaining ethical business practices, and adhering to specific financial guidelines. Shariah-compliant companies in India must meet criteria such as avoiding high levels of debt and refraining from earning substantial income from haram (prohibited) activities.

A key resource for identifying Shariah-compliant investments is the NIFTY 50 Shariah Index, which includes a list of halal stocks in India. Investors can also refer to Shariah boards or Islamic scholars to verify compliance.

What Makes a Stock Halal?

A stock is considered halal if it fulfills both ethical and financial criteria. These include:

1. Business Activity: The primary business should not involve industries prohibited under Shariah law, such as tobacco, alcohol, gambling, or pork-related products.
2. Debt-to-Equity Ratio: The company’s financial structure should limit reliance on interest-based debt. A commonly accepted threshold is that total debt should not exceed 33% of total assets.
3. Income from Non-Compliant Activities: Revenue from non-permissible activities should not exceed 5% of total income.
4. Ethical Practices: The company must adhere to transparent and ethical practices.

For example, halal shares to buy in India might include stocks like TCS or Infosys, which typically meet Shariah-compliant standards due to their low debt and permissible business operations.

Key Principles of Shariah Investments

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.

Why Invest in Halal Stocks?

Investing in halal stocks allows you to grow wealth ethically and in alignment with your values. Here are a few benefits of investing in halal stocks:

1. Religious Compliance: For those who follow Islamic teachings, investing in halal stocks provides an opportunity to earn returns without compromising their beliefs.
2. Social Responsibility: Many halal stocks are in industries promoting positive contributions, such as renewable energy, technology, and healthcare.
3. Transparency: Shariah-compliant companies often have stringent reporting standards, ensuring that their operations and finances remain ethical and clear.
4. Long-Term Growth: Many halal stocks belong to industries with consistent growth potential, such as technology and consumer goods.

How to Identify the Best Halal Stocks in India?

Identifying halal stocks requires careful screening. Consider the following steps:

1. Analyse Core Activities: Ensure the company avoids haram industries like gambling, alcohol, and conventional banking. Focus on sectors such as technology or healthcare.
2. Financial Ratios: Use Tickertape Stock Screener to check compliance. Ensure debt is below 33% of market capitalisation and non-halal income stays under 5%.
3. Refer to Shariah Indices: Consult indices like the NIFTY 500 Shariah for pre-verified compliant stocks.
4. Governance Practices: Look for companies with ethical governance and adherence to ESG standards.
5. Stay Updated: Follow market trends in industries that typically align with Islamic principles, such as renewable energy or IT.

These steps can help you identify Shariah-compliant stocks in India and build an ethical halal investment portfolios India.

How to Invest in Halal Stocks?

Investing in halal stocks involves selecting companies that comply with Shariah principles. Here’s how you can proceed:

1. Direct Investment: Explore halal stocks listed in indices like the NIFTY 50 Shariah Index. These indices pre-screen companies for compliance.
2. Halal Mutual Funds: Consider funds which invest exclusively in Shariah-compliant stocks.
3. Stock Screeners: Use Tickertape Stock Screener to filter halal stocks based on financial ratios and business activities.
4. Check Financial Ratios: Verify compliance by ensuring interest-bearing debt is below 33% of total assets and non-compliant income doesn’t exceed 5%.
5. Consult Experts: Seek guidance from financial advisors familiar with Islamic investing.

By integrating these methods, you can ensure that your investments align with both financial and religious goals.

Who Should Invest in Halal Stocks?

Halal stocks can be a suitable choice for individuals who prioritize ethical investing and value adherence to specific principles. These stocks are ideal for:

1. Investors Interested in Islamic Principles: Those who aim to align their investments with ethical guidelines rooted in Islamic finance.
2. Ethical Investors: People seeking socially responsible halal investment options India that avoid certain industries and practices.
3. Long-Term Investors: Individuals looking for stable growth in sectors like technology, healthcare, or renewable energy.

Benefits of Investing in Halal Stocks

1. Ethical Investing: You can grow your wealth while adhering to Islamic principles.
2. Diversification: Shariah-compliant stocks in India often include a variety of industries, such as technology, healthcare, and manufacturing.
3. Stable Returns: Companies meeting stringent ethical and financial standards tend to be more resilient.

No. of Shariah Compliant Halal Stocks in Nifty Index

Criteria for Non-Halal Stocks

Stocks are considered non-halal if they:

1. Operate in Prohibited Industries: Examples include alcohol production, gambling, or conventional banking.
2. Have High Interest-Based Debt: If a company’s operations rely heavily on interest, it becomes non-compliant.
3. Earn from Haram Activities: Companies deriving significant revenue from non-permissible activities are excluded.

What Are Halal Mutual Funds?

Halal mutual funds have their origins in the demand for investment solutions that align with specific ethical and financial principles. The concept first emerged in the 1980s when investors sought alternatives to conventional funds, which often included businesses involved in gambling, alcohol, and interest-based financial services. The introduction of such funds was a milestone, offering investors a way to participate in financial markets while adhering to ethical guidelines.

These funds are designed to create diversified portfolios by investing in stocks and assets that meet rigorous ethical screening criteria. Fund managers work alongside advisory boards to ensure that the investments avoid prohibited industries and meet financial thresholds, such as limiting reliance on interest-bearing debt and ensuring ethical income sources.

In India, halal mutual funds are increasingly popular among investors looking for socially responsible and compliant investment options. Regular audits by specialized boards ensure the funds remain aligned with ethical standards, giving investors peace of mind about their portfolio choices. However, before investing in halal mutual funds, it is crucial to consult a financial advisor or professional who understands the screening criteria and ethical principles to ensure the investment aligns with your personal goals and values.

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.

FAQs About Halal Stocks

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Harshit Singh

Content Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of experience as a Content Strategist, I’ve had the pleasure of working with a Fortune 100 company and building three successful startups from the ground up.

As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.

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