10 BEST BOOKS ON INDIAN STOCK MARKET FOR BEGINNERS

Are you searching for the best books on Indian stock market for beginners? Well, you are at the right place as we have written this awesome article on best stock market books by Indian author. Yes, all the books mentioned in this article are written by Indian Authors. There are hundreds of books related to “how to make money in the stock market” yet 80% of the investors lose their money in the stock market. Why the stock market is still considered gambling by many people.

So, which are the best books on Indian stock market? If you want to know the answers then I would highly recommend you to check out the books mentioned in this article. So, let’s go and find out which are the best books on Indian stock market for beginners.

Read: Best Careers in Stock Market in India

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“Life seems to be like a stock market. Where relationships are traded. Can’t judge when the value of a relationship will go high or low!”

-By Kankane Rakhi Surendra

 

BEST BOOKS ON INDIAN STOCK MARKET FOR BEGINNERS 


1. STOCKS TO RICHES: INSIGHTS ON INVESTOR BEHAVIOUR 

  • Author- Parag Parikh
  • Book Pages- 132

This book is one of the best books on Indian Stock Market for beginners. The book talks about Investing basics, Behavioural finance, Traders and Investors psychology. It is written in simple and easy to understand language which is apt for beginners who wants to invest in the Indian stock market. This book also provides you with great examples so that you can easily understand complex terminologies. 

Key points mentioned in this book:- Loss Aversion, Price Anchoring, Decision Paralysis.The book won’t discuss financial chart or ratio rather it gives us insights about human behaviour on a financial matter. 

Pros-

Must read for beginners.

Easy to understand language. 


2. ROMANCING THE BALANCE SHEET 

  • Author- Anil Lamba
  • Book Pages- 260

The book helps an investor to calculate the valuation of a company through its financial statements. It explains in such a simple manner that beginners can get a surface level understanding of financial statements. This book is recommended for those who don’t have basic knowledge about finance. It will help you understand what profit means, make the most efficient use of your working capital and also the simple secrets of marginal costing. 

Pros- 

Best book for those who don’t have basic knowledge about finance.

Easy to understand language. 


3. HOW TO AVOID LOSS AND EARN CONSISTENTLY IN THE STOCK MARKET 

  • Author- Prasenjit Paul
  • Book Pages- 242

The book is a comprehensive guide to stock market investing. It is a practical guide for identifying quality stocks, fundamental analysis, buying and selling of stocks. It also gives you great examples from the Indian stock market and the misconceptions surrounding the market. The author has done a terrific job of putting his thoughts and his own experience in a very simple manner. 

Pros- 

Must read for beginners.

Easy to understand language. 

Cons- 

Book has grammar and sentence construction errors but you can still understand what the author is trying to say

 

4. THE DHANDHO INVESTOR: THE LOW-RISK VALUE METHOD TO HIGH RETURNS 

  • Author- Mohnish Pabrai
  • Book Pages- 208

This book talks about how some people of the Patel community from Gujarat established successful businesses in the United States in the 1970s when they didn’t have enough money. Today, they own over $40 million on Motel assets in the U.S and employ nearly a million people. The book teaches you how to create and make a successful business through low risk and high return technique and apply the same technique to generate high returns in the stock market. 

Pros- 

Easy to understand language.

Contains great examples from Indian Culture.

 

5. BULLS, BEARS AND OTHER BEASTS: A STORY OF THE INDIAN STOCK MARKET 

  • Author- Santosh Nair
  • Book Pages- 416

The book takes you on a sensational journey of the Indian stock market over the last 25 years. It is a must-read for beginners who are keen to learn how the stock market functioned in the ’90s. One of the best books on Indian stock market history for beginners. From tech boom and tax evasion to money laundering and scams, this book will tell you all about it. 


6. COFFEE CAN INVESTING: THE LOW-RISK ROAD TO STUPENDOUS WEALTH 

  • Author- Saurabh Mukherjea
  • Book Pages- 288

The book shows you how you can go with low-risk investments that generate great returns. The goal of this book is to help you build a good portfolio and to do your financial planning. It illustrates how wealth can be created through the equity market. The book is easy to understand and a must-read for long term investors. It also explains complex financial terminologies in a simple storytelling manner. 

Pros- 

Must read for beginners.

Easy to understand language. 

 

7. THE LITTLE BOOK OF VALUATION: HOW YO VALUE A COMPANY, PICK A STOCK AND PROFIT 

  • Author- Aswath Damodaran
  • Book Pages- 256

There are many ways to make money in the stock market but one strategy that has proved itself is value investing. This book talks about how you can make a better investment decision when reviewing stock research reports and while picking up stocks. The author uses case studies and examples so that the reader can easily understand. It is a great book for gaining unique insights on dual valuation methods. 

Pros- 

This book focuses on the valuation of a company. 

Cons- 

Read the book only if you know fundamental analysis. 


8. THE UNUSUAL BILLIONAIRE 

  • Author- Saurabh Mukherjea
  • Book Pages- 454


This book tells you the story of 8 phenomenal companies that have achieved long term success in the business world and made great money for the investors. The book gives you the insight of Indian companies and helps you notice facts about strong companies and their fundamentals.

Pros-

Help a beginner to understand how successful companies are.


Cons-

The book is a compilation of background of a few Indian companies.


9. HOW TO READ A CASH FLOW STATEMENT

  • Author- N. Ramachandran
  • Book Pages- 104


The book explains all the factors affecting the cash flow of a company. This book talks about one of the most important things i.e Working Capital Management. If Working Capital Management is not good then the company can’t remain in profit for a long time. The book also has practical exercises and accounting tables. If you read this book, you can learn more about the market and its industries.


Pros-

A good book for people from the non-finance field.

Recommended for beginners.

10. HOW TO MAKE MONEY TRADING DERIVATIVES: AN INSIDER’S GUIDE

  • Author- Ashwani Gujral
  • Book Pages- 280


This book is for those people who want to earn money through trading. The book has real-life trade examples from the author’s own experience. It provides clear insights for those who are interested in developing technical analysis skills. The book covers how to use technical analysis to find, enter and exit a trade, trading discipline, cash and future arbitrage and many more topics.


Pros-

A useful book for beginners who wants to do short term trading.

Some Honourable Mentions:-

1. Value Investing and Behavioral Finance by Parag Parikh

2. Investing In India by Rahul Saraogi

3. Investonomy by Pranjal Kamra

 Read: Best Careers in Stock Market in India

Conclusion:-


So, these were the best books on Indian stock market for beginners. If you want to know the basics of stock market and how it works, read these books. Here are some tips for beginner investor-Before blindly investing in the stock market you should learn and research about the stock market or else you will end up losing a lot of hard-earned money. As a beginner, try to practice on a trading simulator to gain some confidence before trading in the actual market.

 

“You never know what kind of setup market will present to you, your objective should be to find an opportunity where risk-reward ratio is best”

-By Jaymin Shah

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