Top 100 stocks by Market Capitalization BSE Listed stocks Market Capitalization

The business has generated an average return on equity of 17.2% in the past five years. Blue-chip stocks are a desirable investment option for achieving long-term financial goals. However, blue-chip stocks are considered relatively less risky as they are the stocks of well-established companies and have fewer chances of going out of business in a recession. Investors willing to earn a regular income may consider investing in blue-chip stocks offering high dividend yields. Blue-chip companies usually have reached their maximum growth potential so that they may grow slowly and steadily.

Leading international IT services provider HCL Technologies Ltd. specializes in offering a broad range of software services, business outsourcing services, etc. The organization also works in several other https://1investing.in/ industries, including mining, natural resources, finance, healthcare, defense, and aerospace. The business has branches in 32 nations, including the US, France, Germany, the UK, and the United States.

Wipro Ltd. recently became the 3rd IT firm to reach a market worth of Rs. 3 trillion. These stocks are cheaper in comparison to other MNCs which is the reason why it is on this list of low price blue chip stocks. The second advantage to add blue chip stocks in your portfolio is , it balanced your portfolio in a volatile market condition. So You must add blue chip stocks with strong fundamentals and future growth to achieve a diversified portfolio. For senior citizens who want to invest in stock market with a limited risk for their portfolio blue chip stocks are good bet. To help you diversify your portfolio, StockBasket has expert-curated baskets of stocks or mini portfolios that can help you to invest in top blue chip companies in the right weightage.

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Blue chip companies have a large market capitalization -As a thumb rule, the market cap of most of the blue chip companies in India is greater than Rs. 20,000 crores. You might already know many of the blue chip companies in India and have been using their products/services in your day-to-day life. But most of these blue chip companies have already reached a saturation point. They can not continue to grow at the same pace and hence can’t give similar returns as they used to give in the past. Once a company has sold a billion products, it’s difficult to find the next billion customers.”, Gaurav challenged me with his witty reply.

Tata Consultancy Services Ltd is the largest IT company in India by Market cap and the world’s largest IT Services provider. The company is involved in providing a wide spectrum of services such as IT Services, Consultancy, business solutions, digital transformation, and IT products and platforms. The company is also foraying into newfound and developing technologies such as cloud-based computing, machine learning, AI and Blockchain-based technology. TCS’ major revenue generation is from North America contributing to about 52.2%, UK around 31.9% while India is the least at 5.1%.Other markets contributed 10.8% of the portfolio. We have covered almost everything about blue chip stocks in India. We also informed you about some of the best low price blue chip stocks and also the ones that give high dividend.

High Dividend Blue Chip Stocks in India

The riskiest of stocks, some of them may generate abnormal returns if they start to fare well. These are usually the micro-caps or small-caps in our markets. Blue chip stocks work by providing regular dividend income to their investors along with steady wealth creation. Such blue-chip companies are typically large and well-reputed with market capitalisation values exceeding Rs. 50,000 crores. Blue chip companies are financially sound with strong management. Given that these quality companies are more resilient to economic downturns, they may continue to grow or operate profitably even during adverse market conditions.

If the stock trades at unrealistic valuations, let’s say at a PE of 100 or more, you must stay away from it until it’s available at a reasonable valuation. Since bluechip stocks are well-recognised, naive investors invest in them taking their valuation a notch higher. With zero debt on its book and healthy cashflows, the company has been rewarding its shareholders consistently. A dividend paymaster, the company’s 5-year average dividend yield has been phenomenal, averaging 5.1%, much higher than the industry average of 2.1%. While the revenues and net profits have grown robustly at a 5-Yr CAGR of 9.8% and 16.3% respectively, the returns have been equally strong.

Blue chip funds are basically several blue-chip stocks with single security that offers the simplest way to diversify into various high-quality stocks. It is the second-largest publicly traded company in India by market capitalization. Its strong management team will keep the company growing steadily, which in turn, will help you earn high profits on your investment portfolio.

Direct investment — We may invest in Blue Chip stocks by buying them from the open stock market at market price. In the early 20th century, Blue Chip stocks primarily meant high-priced stocks. If at first, it was the Blue Chip share price determining the status, now it is the inherent value of a Blue Chip share . A basket is a group of stocks or mutual funds handpicked under a trending theme. Browse the various baskets and invest in the theme you believe in.

A well-capitalized blue chip company is a pioneer that exhibits stable growth each financial year. The whole world knows about these organizations and their goods and services dominate the domestic and international fronts. India’s top bank and financial services provider and best blue chip stocks in India in the sector is HDFC Bank. Numerous goods and services are offered by HDFC Bank, such as retail and wholesale banking, Treasury, auto and two-wheeler loans, personal loans secured by real estate, and credit cards. Shares of a company that has been making profits for a long time and paying high dividends to investors are called blue chip shares. These companies win the trust of investors through transparency, clear division of responsibilities, equitable distribution of returns and good corporate governance.

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● Income of the Company through financial statements – Their balance sheets and profit and loss statements can be accessed from their official websites and should be thoroughly looked at. You can also figure out the Debt equity ratio from these statements, which should be lower. Individuals can invest in Blue-chip stocks in India either directly or through Mutual Funds. The 4 Basic elements of Stock Value There are many ways to find a stock’s value but today we discuss the 4 best financial ratios that… The stock is trading at a small premium to its 10-year historical median P/E of 62.1x, but trading at an exorbitant premium to the industry P/E of 35.2x. The company enjoys an established market position in most of the categories it is present.

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. Blue-chip stocks catch the attention of newbies and even seasoned investors.

Housing Development Finance Corporation (HDFC):

With over 5608 branches and ATMs in 2902 Cities, it has a vast network. HDFC is a Large-Cap banking stock in India and one of the largest in terms of market capitalization and is one of the top blue chip stocks in India. However, there is one particular type of stock that gets a lot of attention from every kind of investor – and they Assets to Equity Ratio Meaning are the BLUE CHIP stocks. Moreover, when most newbies enter the exciting world of the stock market, they are suggested to look into blue chip stocks as safer investment options. However, being new to investing, most of them are simply confused and are not able to understand what other means when they say blue chip companies.

One of the largest IT sector companies, TCS is among the best blue chip stocks in India. – One of the biggest benefits of investing in high performing blue stock companies is that it can help investors generate a regular source of passive income. Blue Chip Stocks” simply means the listed stocks of blue chip companies. As these generally perform better than other listed stocks, hence they remain at the top of the list of investment options in India for investors. Amid all the risk possessed by the stock market, an Indian investor’s initial instinct will be to invest in blue chip companies of India. Photo by Maxim Hopman on UnsplashA blue-chip stock portfolio makes a great addition to any investor’s holdings.

A blue-chip stock is the stock, of typically, financially sound companies that have had a healthy operation for many years and have dependable earnings. These stocks also often pay a steady dividend to their investors. Generally, a blue-chip stock is a market leader in its sector or amongst the top three by market capitalization.

He related all the high priced stocks with the blue chips which have the highest value in the Game of Poker. Oliver Gingold first coined the term Blue Chip stock in the 1920s. On noticing several trades on the stock ticker fluctuating between $200 to $250 a share, he informed Lucien Hooper of the famed stock brokerage firm W.E. Hutton & Co. that once back at work, he intended to write about these “blue-chip stocks.” Ever since this term has been used to refer to high priced quality stocks.

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. Blue Chip companies are known for rewarding their loyal shareholders with consistent and increasing dividends. Also, these companies should have a high return ratio , high interest coverage ratio, ability to consistently generate cash flows, etc. If you are planning to invest for the long term with low risk and steady returns then blue chip investments are for you.

These stocks will help your portfolio to overcome from market volatility. These stock will give you slow and steady growth, but in long term they are very beneficial. Blue chip stocks are well known for consistent and stable return.

The companies given below have a strong financial foundation, are well-established and have gained the trust of many through years of growth and profitability. Investing in them is the easiest decision to make because there is little to no risk and returns are guaranteed. First if you want to invest in bluechip stocks then the first thing is demat account you must need a demat account to buy any share. But If you have started your investment very late then you should balanced your porftollio mostly with blue chip stocks, around 40 +60 % (60 % bluechip stocks ) or 30% + 70% (70% bluechip stocks). Blue chip stocks are counted as quality stocks, if for any reason market crash, then off course you will see correction in these stocks, but as the market recovers, blue chip stocks recovers its all losses.

• We would like to address these questions in this article and evaluate some of the Indian companies that would qualify to be a blue-chip company.
• Oliver Gingold first coined the term Blue Chip stock in the 1920s.
• HDFC is renowned for its management’s track record of success, sufficient capitalization levels, high asset quality, rigid underwriting standards, and diversification into various related segments.
• The Blue chip companies, more or less refer to the top 100 companies listed on a stock exchange.
• Investments in WealthBaskets are subject to the Terms of Service.

Blue chip Companies are which has a large Market capital, High Liquidity and well-recognised company with a long history of sound financial performance. Trade Brains is a Stock market analytics and education service platform in India with a mission to simplify stock market investing. As of July 2022, its market capitalization of Infosys was Rs. 6,38,148 crores. Companies are financially strong (usually debt-free or very low debts), trustable, and are capable to survive in tough market situations. That’s why I thought it better to give him another example to make him understand the capabilities of blue chip companies.

HUL’s products include foods, beverages, cleaning agents, personal care products, and water purifiers. Blue chip companies have survived a number of bear phases, market crises, financial troubles, etc. Most of these companies are listed in the market for a very long time. In case of any dispute between the Participants and the investors arising out of this facility, NSEIL/BSE and / or NSCCL/ICCL agrees to extend the necessary support for the speedy redressal of the disputes. The Client has read and understood the risks involved in investing in MUtural Fund Schemes.