Gaming Stocks in India: Should You Invest

Gaming Stocks in India: Should You Invest?

The gaming industry across the planet has come into its own. It's the new favourite sector and there are many investors who are takers for investment in gaming companies. As the gaming habit, and a seriously great career for some, gets hotter and hotter, so do gaming stocks. Now, you can find an online trading app with great stocks offered up in the sector of gaming. Indian gamers are  now in the millions, and these make up a lot of the investors interested in gaming company investments. This is the new preferred hobby sector, and a place for serious gamers to transform hobbies into a lucrative skill set. However, if you want to be a part of the novel “in” crowd in the gaming investment arena, you should get an idea about the Indian gaming sector before you open a demat account online. 

 

The Gaming Sector of India

 

An overview of the Indian gaming industry is necessary before you go ahead and open a demat account in the expectation of investing in gaming stocks. This is still a nascent Indian industry, relative to a lot of other countries, and hence, investors should tread with a little care. The popularity of mobile games has only increased, and thus, there is a rise in gaming companies. As the demand for more challenging games continues, more and more companies will spring up, and existing ones will have to innovate to keep up with the competition. However, as with any industry in which you are engaged with, in stock market trading, you must do your research before investing. 

 

The gaming world of India is on a rapid path of growth and development, and gaming is here to stay. At the current moment, the number of companies engaged in active game development is in the sphere of 275. Moreover, at present, the value of the gaming sector in India is Rs. 143 billion. In 2007, this number was only 4 billion. Who drives this almost exponential growth rate? 

 

Growth in Gaming - Key Drivers

 

To invest in any upcoming IPO or some good mutual funds would have been the way to go for investors a few years ago. However, now it's all about young India investing in gaming stocks. Today, a young investor wishes to open a demat account online, through their smartphone, with a single stock in mind, a gaming stock. The main drivers of growth in the gaming industry and hence, in the investment of gaming stocks, are highlighted below: 

 

  • The Youth - The country we live in, namely India, is a young nation. Around 46% of the Indian demographic is under 25 years of age. In view of this, it stands to reason that gaming is an industry which is in demand in India. More youth play games than individuals in other age groups, and this has given a much-needed boost to India’s overall gaming sector. Additionally, the youth is also playing a large role in investment with exposure to the requirements/knowledge of early investment. Therefore, the youth would rather invest in companies they find worthy, and gaming plays a key role in these. 

 

  • The Smartphone - Since almost all of India’s mobile users are smartphone users, at least many millions of them, the user base of smartphones has a lot to do with gaming industry stock investment. The user base of smartphones is only growing day by day in India, and any online trading app facilitates investment quite conveniently. With approximately 500 million people who use smartphones in India, the penetration of users is logged at around 37%. The Indian gaming industry has seen a revolution of sorts as smartphones have encouraged gamers to engage in gaming from anywhere. In 2021, gaming apps made up 86% of apps that smartphone users had downloaded on their smartphones. 

 

  • The Affordable Internet - The use of the internet has become more affordable now than it was in recent years. Compared to global averages of USD 8.53 for 1 GB data usage, in India, the cost is just USD 0.26. Consequently, Indians can do more, including use their smartphones and devices for gaming. 

 

  • IT Sector Growth - The information technology sector in India, and globally, has all but surged. The sector not only offers support for the gaming industry, but also provides backend support and the ability to use all technology devices with ease. What’s more, the investment scenario is aided by the technology sector as anyone can open a demat account online and begin trading and investing. With the widespread use of IT, people from the remotest corners of the country, to urban areas may invest. In addition to this, online payment has become easy and secure with the use of technology and more people buy online games in a versatile way. 

 

  • Global Crisis - The recent global health crisis has gone a long way in encouraging the activity of gaming. As most people were forced to remain indoors, gaming offered a good pastime, and individuals, young and old, found some respite and purpose. During this time, and the trend has continued, the gaming sector saw a rise of more than 100% with regard to the amount of new gamers. This was especially the case in India’s tier 3 cities. 

 

Should You Invest?

 

The Indian gaming sector has generated a growth of 40% from 2019-2020. This has only been built up further in the last few years. With an online trading app, it is very simple to get into investing in the top gaming stocks today, with sentiments for the rise of these on the positive side. India, in the gaming sector, has the potential of capturing 5% of the global market share in the gaming industry. The related fields of visual effects, animation, and comics (along with gaming), show the promise of a CAGR amounting to 20%-30%. 

 

When you open a demat account today, you can start your investing path with top gaming stocks like Delta Corp, Nazara Technologies, Zensar Technologies, and other technology companies that have a direct or indirect link to gaming like Tech Mahindra and TCS. Although there is no upcoming IPO related to the gaming sector, you may well find one in the days to come. For now, India holds a pride of place as one of the leading five digital gaming markets internationally. The sector is touted to see much growth, so investing is a good idea. 

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