Best Blue Chip Stocks in India Big Players of Stock Market???
Companies which are governed by a very strong management team and have provided consistent results over a long period of time can be categorized as ‘Blue Chip Companies’. It was Oliver Gingold of Dow Jones who coined the term ‘blue chip’ for the superlative stocks in town. The highest denomination value of poker was valued at $25 back then in the 1920’s; and, the chip was blue in color, hence we get the name ‘blue chip’. Liquidity – Stocks which are not much affected by large buy or sell orders are considered as liquid stocks. Liquidity in the market means there is enough scope in the market for trading the stock, without leading to its price (and hence, the company’s market cap value) to fluctuate.
But they are also using their capital efficiently to grow their business. A few years back, they entered a new market- Telecommunication Industries, and now they are also a leader in that industry. Reliancesmartmoney.com is a brand under which Reliance Securities Limited offers its broking & investment services.
This makes them hugely popular amongst investors but a poor option for traders who would like to make quick shot lump sum money. These are well-established names in the market and their stocks tend to remain unaffected by stock market crashes. Stock market because of their better performing quality stocks. The giants of the Indian market – Infosys Technologies LTD, Bharti Airtel, State Bank of India are some of the blue chip companies. This has invited much attention as well as huge investments from foreign investors. Investing in the stock market is all about making the right decisions, from choosing the right stock broker to choosing the right stock to invest in.
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. 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.
This is simply because their income increases in tandem with their capital appreciation. That is the primary reason, why blue chip companies or inventories are regarded as the best form of investments. Say, you receive a dividend of 20% on your investment, it means that your capital on your investment has risen by 20% at the same time as your earning potential in the form of dividends.
What are Blue Chip Stocks?
The company is a premier financial institution that is engaged in providing a wide portfolio of banking and financial services including retail banking, wholesale banking and treasury operations. With a market capitalisation of Rs 12.1 tn, Tata Consultancy Services is the largest information technology services, consulting, and business solutions provider in India. While standing near a stock ticker, Gingold noticed certain stocks trading upwards of $200 for every share and termed them as “Blue Chip Stocks” in reference to the blue chips of a poker game. Although Oliver Gingold used the term ‘blue chips’ for high priced stocks, however, later people started using this word more often to define high-quality stocks . The term ‘blue chips’ became popular after he wrote an article where he used ‘Blue chips’ to refer the stocks trading at a price of $200 or more. It’s better to invest in growth stocks with huge upside potentials.”, Gaurav argued energetically.
Is Tata Motors blue chip?
Many blue chip companies in India like Tata, Reliance, Infosys etc are considered as 'Too-big-to-fail' companies as they have survived and remained profitable for a very long time.
With a 60% market share, HDFC boasts of the largest banking networks in semi-urban and rural India and enjoys a dominant position in the auto loans segment and cash management services. A stock split was executed by Tata Steel on 28 July in order to provide more liquidity in the market. Still considered one of the most coveted Tata group stocks, the shares of the company are trading at Rs 112.9 apiece. Oil & National Gas Corporation is India’s largest oil and gas producer and perhaps one of the most undervalued stocks in the bluechip arena at the moment.
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. Blue chip companies are large and well-established companies with a history of consistent performance. On Redemption of Demat units, funds will always be credited in ledger account held with Reliance Securities. 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.
Further, it is often seen that a Blue Chip business is less affected by unfavorable financial conditions during recessionary periods. Given the large size, a Blue Chip company is easily recognisable and financially stable with a large distribution network. These companies typically sell quality products and services that are widely accepted across Learn About Ratio Of Fixed Assets To Long the country. 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.
Bluechip companies are the largest and fundamentally strong companies that are established, and mature businesses generating consistent profits and return. Thus, blue chip companies can be looked at as large-cap companies whose stocks perform better than others and most probably will grow in years to come. – Blue chip companies although ensure regular returns to investors, but the returns are low in numbers.
How to buy blue chip stocks?
You can buy blue-chip stocks either individually through your Demat and Trading account or you can invest in various mutual funds (MFs) and thematic exchange-traded funds (ETFs) that track the blue-chip stocks that you are interested in buying.
Similar to the game, these stocks which are more valuable in the market and hence are termedBlue Chip stocks. Reliance, TCS, Infosys, ITC, HUL, HDFC Bank, SBIN are some of the top blue chips stocks in India. So as a investor you should not expect high return similar to small and mid cap stock . According to your age you can balanced your portfolio, if you have started your investment very early then you can take risk and you can add maximum investement in growth stock. You can better imagine if any investor has invested for short term and they have picked the stock at high level then what happened with him, especially if he don’t have longer time. HUL is India’s largest FMCG sector company, which mostly operates in making products include foods, beverages, cleaning agents, personal care products, and water purifiers.
The stocks of blue chip companies are priced at high rates because these companies have a well-proven track record of appreciating over time. – As the blue chip companies stocks are comparatively more stable https://1investing.in/ than others, they can in turn ensure greater profits on the investment. These companies tend to grow with time and hence an investor is more likely to profit from staying invested in the long term.
Examples of bluechip stocks in India ?
For maximizing profits, a trader will need to stay invested for longer periods. This growth over time translates into huge profit potential for investors and thus stays highly in demand. The one who is a less risk taker can invest in blue chip companies, investing in these companies will lead to stress free tradingonly if a proper strategy is adopted. These companies have a strong financial backbone, are usually debt-free which is great news for investors who are planning for goal based investing in India. Most people invest in blue chip companies become of their long history of consistent performance and a similar expectation of standard performance in the future.
- The best blue-chip shares to buy now usually are stocks of the bellwethers and trailblazers, currently occupying the highest ranks of any industry.
- Of the common examples of blue chip companies in India are HDFC Bank, HUL, ITC, Asian Paints, Maruti, etc.
- To strengthen its digital capabilities and expand its global footprint, Infosys has acquired key companies.
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What is ‘Blue Chip Stocks’
Blue-chip companies can influence the economic strength of a country and you can regularly monitor their performance in financial news. These investments made in Blue Chip companies are considered less risky and less volatile which is why these are extremely popular among investors. Blue Chip companies are extremely reputed and have products and services that are widely used.
Why is it called blue chip company?
A blue chip is stock in a stock corporation (contrasted with non-stock one) with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.
The revenue and profits have grown at a 5-Yr CAGR of 2.4% and 4.2% respectively, while the 5-Yr ROE average stands tall at 18.3%. Currently, the company is trading at a Price to Book value (P/BV) of 3.5x, which is a discount to its 10-Yr median P/BV of 4.5x but at a premium to its industry average of 2.2x. However, the popularity of such blue chips is the very reason they could tumble sharply. Permalinkthis is my first time i got news related to share marke of nepal from investopaper….
Other Asian stocks fell, following a sell-off on Wall Street overnight. The yuan also weakened to a new 26-month low against a rising dollar right ahead of the Fed policy settings. Block deal is a single transaction, of a minimum quantity of five lakh shares or a minimum value of Rs 5 crore, between two parties.
Blue Chips are low on surprise gains, as their returns are steady and in relatively smaller increments . For a company to achieve this status, the following parameters can be used to identify blue-chip companies, although not exhaustive. If you are looking for a scheme that gets you rich overnight, then bluechip stocks are perhaps not the best way to go.
Vikas Yadav is a professional writer who also happens to be an engineer. He’s been creating content for quite some time now, but it was his fascination and zeal for the stock market that steered him in the right direction. He is eager to spread 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. Financing is the primary activity that Bajaj Finance is involved in as a business.