The stock market consists of thousand of registered companies but all such listed companies are not shariah compliant. The listed companies must pass the shariah stock screening criteria laid down by the Islamic scholars in order to be investible for Muslims. The shariah stock screening criteria helps the Muslim traders and investors to find shariah compliant stocks. Once a company is screened and declared to be shariah-compliant then investing and earning from such companies is permissible or halal.
Check out our blog post – How to find if a stock is Halal or Haram? Shariah stock screening criteria: https://www.shariahinvestments.io/how-to-find-if-a-stock-is-halal-or-haram-stock-screening-criteria
WHY SHOULD YOU TRADE IN SHARIAH COMPLIANT STOCKS?
Shariah compliant stocks are those which have been screened under strict criteria laid-down by Islamic Scholars in accordance with Shariah.
This includes selecting stocks which are not involved in any business related to alcohol, pornography, gambling, intoxicants etc. If the company is involved in haram activities(pornography) or sells products that are prohibited in Islam(Alcohol) then we are indirectly investing to support these harmful and haram activities.
It also includes selecting stocks of the debt free companies or companies with overall debt under 33%.
Hence, the companies which are shariah compliant are those which are not involved in any harmful or immoral activities and whose fundamentals are relatively strong.
Thus, we can say that trading in Shariah compliant stocks ensures a safer and less risky trading process (due to fundamentally stronger companies) and the income generated through such stocks gives a sense of satisfaction that it is not earned from a company selling intoxicants or manufacturing weapons.
We have created a strong watchlist of after a lot of research and analysis on various shariah complaint stocks of every sector.
LIST OF SHARIAH COMPLIANT STOCKS:
- Maruti
- Eicher motors
- Bajaj Auto
- Asian paints
- Lupin
- Ultra tech
- Infosys
- TCS
Also, one must always keep in mind that the stocks keep getting in and out of the list of shariah compliant stocks from time to time. Therefore, before investing in a company we recommend to always check and recheck the compliance of a stock from various websites which are actively working on screening these stocks. Such websites include Islamically, Zoya etc.
You can join our courses – BSTC & SCTC to learn more about Islamic trading. Our students are also provided with a strong watchlist of stocks.
Check out this page- Stock Market Trading Courses- SCTC & BSTC – Shariah Investments India
Islamically – https://www.islamicly.com/