Gold has delivered returns of 70–80% this year, while silver has surged 150–160%. Other metals like copper, platinum and palladium have performed even better, but Indian investors have limited access to them. As a result, despite market logic, gold and silver remain the preferred choices. Meanwhile, the Sensex—set to turn 40 on January 1, 2026—has delivered a lifetime return of 15,594%, or about 13% annually, making it a symbol of long-term trust for investors.
Unlike commodities, equity investing no longer requires constant monitoring. Today, computers can execute trades on your behalf through algorithmic trading, following predefined rules aligned with your preferences and risk appetite.
What triggered the Infosys ADR spike?
A recent incident brought algo trading into sharp focus. Minutes after Wall Street opened, Infosys ADRs jumped 38%. NYSE imposed multiple trading halts, but not before several traders made huge gains. While Infosys shares rose just 0.7% in India that day, a suspected “ticker-mapping error” in an algo model triggered repeated buy orders, pushing prices from $19.18 to $27 in minutes. Low liquidity worsened the spike.
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What is Algo trading?
Algo trading uses computer programs to buy and sell shares automatically. These programs process vast amounts of data instantly, apply predefined rules, and execute trades faster than any human can.
How does Algo trading work?
It starts with strategy design- simple rules like buying stocks below a 50-day moving average or advanced models like statistical arbitrage. Historical data is used for backtesting, after which the strategy is coded in languages like Python or C++. Once deployed, the system scans markets and executes trades automatically.
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To control volatility, modern algo systems include safeguards such as stop-losses, position limits, and exposure caps, ensuring losses stay within predefined limits.
Algo trading in India
Algo trading in India is still developing. While institutional participation is high, retail involvement remains limited. SEBI has now created a structured framework, mandating brokers to offer algo trading, with full compliance required from April 1, 2026.
With rapid advances in AI, machine learning and computing power, experts believe algo trading will play a growing role in both retail and institutional markets. While adoption in India may take time, its dominance in developed markets appears inevitable.
