Which Indian stock is a 'must hold' in everybody's portfolio?
By:- Thinking Boxx Team | Aug. 28,2022
Best Blue Chip Stocks in India for Investment: There are more than 5000 stocks in NSE and BSE. These all stocks are categorized into many groups. First, you can categorized stock based on market capitalization as follow.
1. Small-cap
2. Mid-cap
3. Large-cap
Based on stock characteristics, they are categorized as a growth stock, value stock, and dividend stock.
When I attar the word “Blue Chip Stocks” some new investors did not understand it. They are a special type of stocks where every type of investor is attracted (both beginner and pro). When every newbie enters the world of investing they are suggested to pick up these Blue chip stocks.
In this section, we are going to discuss what is Blue chip stocks? Also, we are going to discuss the top 10 Blue chip stocks. This post may be a little long but worth reading, be patient.
First Understand this
If you are a beginner and I suggest you invest in Blue chip stocks or large-cap stocks you may disagree with me. You start saying to me that these stocks already achieve their peaks. These stocks are not growing more or these stocks take more time to gain profit.
You will say I will prefer to invest in mid-cap and small-cap stocks they can give me more returns.
You are true dude, but blue chips stocks are stocks that contain low risk with a decent return. If you diversify your portfolio your risk will remain low.
Large-cap stocks may not maintain the same pace of growth forever but these stocks already achieve their brand level. It doesn’t mean that these stocks do not become profitable in the future or cant give a profitable return in the future.
This type of stock already has a strong face value and strong fundamentals. This stock is the market leader in their sectors.
Blue-chip companies are large-cap companies with strong fundamentals. These types of stocks have a history of consistent performance and strong financials. These types of stocks are capable to survive the bad market situation.
The term Blue chip comes from a round of poker. Where the blue-colored chips are more valuable, similarly these stocks are also more valuable hence called blue-chip. These stocks belong to a more mature block of the market.
Important Characteristic
Consistent Return
They are large reputed companies
Listed in the market for a long time
Financially Resilient
Low risk
Good record
Strong balance sheet
Survived several bear market crises. But still going strong
TOP 10
Here I give the top 10 list (Declaimer – This list is based on my research and personal opinion. Should not be considered as a recommendation. Before investing consult with your financial adviser.)
Reliance Industries(RIL) is one of the largest private companies in India. This company owns various businesses like energy, petrochemicals, natural resource, textiles, retail, and telecommunication.
On 18 October 2007 RIL becomes the first Indian company to reach 100 billion dollar company market capitalization.
Reliance was founded by Dhirubhai Hirachand Ambani in 1966. headquarter of Reliance situated in Mumbai, Maharashtra.
2. HDFC Bank
HDFC Bank is India’s number one private bank. It is the largest bank by its assets.
This bank is a subsidiary of Housing Development Finance Corporation.
HDFC Bank includes Wholesale banking, Treasury, Retail Banking, Automobile loads, Personal loans, Credit Cards, and loans against property.
Hindustan Unilever is one of India’s largest FMCG (Fast Moving Consumer Goods) companies.
This company is the Subsidiary of the British Duch Uniliver company.
Its products include beverages, food, cleaning agents, water purifiers, and personal care.
4. Tata Consultancy Services (TCS)
Indian company Tata Consultant Services(TCS) established in 1968. TCS multinational information technology (IT) service, business solution, and consulting company. This company was made by dividing Tata Sons limited.
TCS is the number one company by its market capitalization. World wide this company is now placed among the most valuable IT brand.
5. Asian Paints
Asian Pants established in 1942. This company is one of the largest companies in paint manufacturer. This is India’s leading paint company and 3rd all over Asia.
Asian Paint company does business in manufacturing, coating, selling, and distribution of paints, home decor-related products, damp proofing, and related services.
6. ITC
One of the oldest companies in India, the ITC company starts in 1910. The first name of the company was Imperial Tobacco Company.
This company does business in FMCG, Hotels, Agri-Business, Paperboards and Packing, and information technology.
ITC sells more than 80 percent of cigarettes in India. This company has more diversify products all over India.
7. Infosys
Infosys provides information technology services, business consulting, and outsourcing services. This is the second-largest IT company in India. Headquarters is in Bangaluru, Karnataka, India.
In Feb 2021, its market cap was around 73.1 billion.
8. Housing Development Finance Corporation Ltd (HDFC)
Housing Development Finance Corporation Ltd is one of the market leaders in the housing finance sector in India.
This company has a strong business in franchise associates in Banking, Asset Management, Life insurance, Educational loan, Asset management, and real estate funding.
Eicher Motors is the Parent company of Royal Enfield. Mainly manufacturer of automobile and luxury motorcycles.
This is the oldest motorcycle brand in India since 1901. Eicher group deals in design and development, and local and international marketing of trucks, buses, motorcycles, automotive gears and components, and manufacturing.
10. ICICI Bank
ICICI Bank is one of India’s largest private banking companies. Established in 1955.
This bank started with the initiative of the World Bank.
Happy Investing!
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