How to do short selling in Indian Market

Shorting or short selling is the art of selling stocks without actually owning them with a view to repurchase them later at a lower price.Through this strategy one can make profits because of unexpected decline in the stock prices.

In India, Short Selling is not available to retail investors , but to FII's and Mutual funds.

Although, any investor can go short (which is differnt from short selling) , by executing

1.Through Futures : SELL order either in NIFTY or in Individual stock futures
2. Through Options : BUY order in PUTS on either NIFTY or Individual Stock options

The best time to go short is when Markets sentiment is bearish like the one that we see these days where everyday there is a fall of market in India,US and Asia.

Good news, From April 21st, any investor can do Short Selling in Indian markets with a condition that
"All investors will be mandatorily required to honour their obligation of delivering the securities at the time of settlement" which also means no one can do "naked short seling"

With this, now all categories of investors can lend the stocks they own and borrow the one's they don't.

All the stocks that are listed in F&O segement, will be available for Short Selling.

I do trading through "ICICI direct", although so far , there is no communication on availability of these in ICICI Direct.

Keep reading and benefit.