Blue Chip Stocks in India: How to invest in top companies of NSE

The company has a strong brand portfolio and an extensive distribution network, making it a reliable and stable investment option for investors. While blue chip stocks may not have the same growth potential as smaller, more innovative companies, it is still important to consider whether the company can continue growing and increasing its earnings over time. HUL has been leveraging its distribution strengths to adapt its channel strategy for its products and market segments which has helped them launch 19 new brands in the last 10 years. The business is expanding in the fast growing Health and Well-being with a strategic partnership with Zywie Ventures Private Limited and Nutritionalab Private Limited .

Conservative investors, who are not ready to take up much risk, may prefer to invest most of their investable income in these stocks. We have not included stocks based on their recent performance or market price. The list, however, comprises those companies which performed better for a long period of time and remained favorite among the investment community in Nepal. Being the biggest bank in the country, SBI is a Large-Cap stock.

Where Does the Term “Blue Chip” Come From?

Being the top blue-chip stock, the company has recently announced its merger with HDFC Bank where HDFC Ltd. will obtain 41% of HDFC Bank. Read all the documents or product details carefully before investing. WealthDesk Platform facilitates offering of WealthBaskets by SEBI registered entities, termed as “WealthBasket Curators” on this platform.

Investors can purchase, rent or sell residential and commercial properties and generate income in due course. Blue-chip stocks act in favour of their investors and extend multiple benefits to them. Blue-chip shares In India are treated as income under Section 80 C of the Income Tax Act.

Investing in bluechip stocks via smallcase

Low-risk – The least risk & volatility are generally expected from blue chip stocks. When investors will go for long-term investments, blue-chip stocks are highly recommended to grow their wealth and earn profits out of it. The term “Blue-Chip” comes from the family of Poker, where blue chips are more valuable than others so named after Blue Chip companies. Top blue chip stocks are the ones offered by such companies and found to be more valuable than the mid & small-cap stocks in the market. Here in the blog, we’ll unveil more about the blue chip stocks in detail.

TCS’ major revenue generation is from North America contributing to about 52%, UK and Europe ex-UK are around 32% while India is the least at 5%. Blue Chip companies are stalwarts in their own industry and belong to the mature lot on exchanges. The term ‘Blue Chip’ originates from the round of poker where the blue colored chips are relatively more valuable. Similar to the game, these stocks which are more valuable in the market and hence are termedBlue Chip stocks. Examples of Blue chip stocks traded on Indian Stock Exchanges are listed below with their sector, price and some other details. To be classified as a blue-chip stock, a company must sustain an earnings growth rate higher than 10% year after year while paying dividends consistently throughout all economic cycles.

Financially Resilient

Their foot print spreads across North America, Europe, Africa and South East Asia through exports and are investing in a state- of- the- art facility in Mundra SEZ, Gujarat, to service the exports markets. Britannia’s strategic expansion plan is based on the principle of ‘One new market a year’ with intention to expand through local operations in Africa and South East Asia in the coming years. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Consistent dividend payouts are always provided by these companies which will help you grow your wealth in the long term.

Vikas Yadav is a professional writer who also happens to be an engineer. He’s been creating Content for a long time, but it was his fascination and zeal for the stock market that steered him in the right direction. He is eager to increase knowledge about the “power of investment” through his collaboration with Alice Blue by creating high-quality educational content for the public at large. If you want to comprehend difficult subjects in simple terms, he’s your man. The below companies are the top 10 blue chip stocks listed in Nifty. This is to inform that, many instances were reported by general public where fraudsters are cheating general public by misusing our brand name Motilal Oswal.

While the PE ratio is higher, the premium is justified as TCS has also delivered industry-leading growth and returns for shareholders, making it attractive at the price offered. Digital transformation deals are no longer discretionary as clients continue to spend, despite their sector being in an Economic down-cycle. Tata Consultancy Services is India’s largest software services company and one of the world’s largest IT services companies. The company has a market capitalisation of over Rs. 12 lakh crore and is known for its consistent earnings growth and strong financials.

Many blue-chip stocks regularly pay dividends to their shareholders. Some of them are dividend aristocrats, i.e. consistently paid increasing dividends for over 25 years. For investors depending on or wanting regular income from stock investments, such blue-chip stocks may be suitable. Market capitalisation means the market value of a company’s shares, calculated by multiplying its outstanding shares and stock price. The blue-chip companies in India usually have a larger market capitalisation, generally above ₹20,000 crores. Because of their large market capitalisation, many blue-chip companies are a part of benchmark market indexes.

The market value of the shares of such companies is often rising. Blue chip stocks refer to stocks of established, large companies. These businesses have a significant market share, a huge financial bandwidth and a firm track record, performance-wise. Massive revenue, consistent performance and profitability of the stock value are just some hallmarks of blue chip companies.

Return for 2022 was -2.2% , 2021 was 32.8% and 2020 was 13.7% . Edelweiss Large Cap Fund is a Equity – Large Cap fund was launched on 20 May 09. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 13.2% since its launch.

• The graph of a blue-chip company is generally stable as it is not very prone to sudden fluctuations in its prices.
• Blue chip stocks refer to stocks of established, large companies.
• Pick up any IT background Engineering student; TCS is one of the top companies they aspire to work for.
• Investors willing to earn a regular income may consider investing in blue-chip stocks offering high dividend yields.
• Equitymaster’s powerful BSE/NSE Stock Screener allows you to screen stocks based on both pre-set and your own criteria.

A few famous brands have high visibility and sustained 6 money habits that are illegal leadership which is backed by an extensive distribution network and a strong advertising and marketing campaign. Britannia’s consistent increase in the No of Outlets has increased its market reach aiding revenue growth. Margins expanded despite the elevated input costs headwind faced by the economy. The margins are on a rising trend after witnessing a contraction in the same. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.

Trending in Markets

Infosys Ltd was incorporated in 1981 and is now a global IT https://1investing.in/ and consulting company. They have started their journey from a capital of USD250 to now a USD79.7 Billion company. It is a Large-Cap IT sector stock that gives a pretty decent dividend per share to the investor, making it one of the best blue-chip stocks. You can find some of the best blue chip stocks in 2023 in the banking and finance sector, and the stalwart banker SBI is one of them.

Apart from the characteristics discussed above, an investor must keep a few key financial characteristics of blue chip companies in mind before investing. Most Blue Chip companies in India have market capitalization greater than Rs. 50,000 Crs. These companies have a track record of consistently increasing their topline and operating margins on an upward trajectory. They are generally debt free companies, however, a low and stable debt to equity ratio may also be considered as a significant characteristic.

A low P/E ratio means the share is undervalued and it is a good opportunity for investors to invest, provided the stock is fundamentally sound. He returned to his office after noticing these high trading prices to write about “Blue chip stocks”. He related all the high priced stocks with the blue chips which have the highest value in the Game of Poker.

Because of these qualities, such companies are more resilient to economic downturns. They may continue to grow or operate profitably, even in adverse market conditions. And this is one of the reasons these companies are relatively less sensitive to wide market fluctuations when compared to Mid Cap and Small Cap companies. Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of , the market cap of Bluechip Stockspin Ltd stood at ₹ 0.00.

Blue chip companies typically have high stock prices since they have a solid reputation and frequently dominate their respective markets. Investing in blue chips is a popular way to grow your money over time. They are stocks of well-established and financially sound companies with a consistent growth history. If you’re new to investing, blue chips could be an ideal entry point due to their relatively low risk profile compared to other investments. Blue chip stocks are the stocks of well-established, large and financially sound companies that have been in business for many years.

The same mindset goes for dividend payouts, it is to boost your confidence in the organization which you are investing in so that you keep on investing with the company & maintain your loyalty with them. Besides, dividend payouts benefit the organization as well along with the investors. It helps in reducing the volatility of the stock, increase their share prices & hence increase their net worth, etc. You may also consider blue-chip stocks to diversify your investments according to your risk and return preference. Your overall investments may be less affected during market falls or recessions because of less volatile blue-chip stocks in your portfolio.

HDFC Top 100 Fund is a Equity – Large Cap fund was launched on 11 Oct 96. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 18.6% since its launch. Nippon India Large Cap Fund is a Equity – Large Cap fund was launched on 8 Aug 07. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 11.5% since its launch. Blue chip investments can serve as the foundation of a broader portfolio, but they shouldn’t often make up for the whole of one’s holdings.

This famous term echoing through Wall Street even today comes from an employee named “Oliver Gingold” of a famous company “Dow Jones”. After you read this article you will know how important this term is in this economic-driven world & why it is specifically called Blue Chip Stock. MRF Ltd, or Madras Rubber Factory Ltd, is the most expensive share in India, with a price of ₹87,455.90. Now, let’s go on to our next section, where we have made a different list for your consideration. Hindustan Unilever Ltd or HUL is an amalgamation of Hindustan Vanaspati Manufacturing Company , Lever Brothers India Limited , and United Traders Limited . Collectively the largest provider of packaged food, beverages, household products, personal care products, water purifiers, and many more.

With a blue-chip stock, you can be sure that a company is doing better than most. When an investor hears blue-chip, there is safety in knowing that these companies are sound and growing. The graph of a blue-chip company is generally stable as it is not very prone to sudden fluctuations in its prices. This, of course, gives an investor much confidence to invest and rely on these companies. A good blue-chip company will be able to withstand economic cycles and any negative media related to them.

A blue chip company has a very high market valuation, making the stock pricey due to this high valuation. Depending on their requirement, investors can park their money in fixed deposit for both long-term and short-term. FDs also allow investors to avail of a loan against it in case of an emergency. Even though the growth of the real estate market in India has slowed down a little, it is still one of the most profitable investment avenues in the county.

This article will discuss what are blue chip stocks, their meaning, and list the best blue chip stocks in India as of 2023. HUL is also a part of the Nifty 50 index, a list of the 50 most liquid and financially sound companies listed on the National Stock Exchange of India. Overall, HUL is considered a blue chip stock due to its strong financial performance, strong market presence, and consistent growth over the years. Nestle India Ltd is considered a blue chip stock due to its long history and strong financial performance. The company has a market capitalization of over $20 billion and is a leading player in India’s food and beverage industry. Blue chip stocks work by providing regular dividend income to their investors along with steady wealth creation.