8 Best Blue Chip Stocks for Long Term Investment

Stocks with the highest liquidity are preferred by large investors and are considered as Blue Chip stocks. The blue chip companies in NSE can be found listed on the market index Nifty 50. A stock market is an ever-changing place where almost anything and everything can go wrong, however, investing in blue chip companies stock does no one wrong. On 18 October 2007, Reliance Industries became the first Indian company to reach $100 billion in market capitalization. It is also the highest income taxpayer company in the private sector in India.

blue chip companies list

If all of their parameters are to be considered, Blue Chips are the ones with the lowest risk to reward ratio. Hindustan Unilever Ltd. – Hindustan Unilever Limited is the subsidiary of Unilever PLC, which is a British-Dutch multinational company. Hindustan Unilever Limited is India’s largest FMCG with a heritage of over 80 years in India. With over 35 brands ranging from soaps, detergents, shampoos, skincare, toothpaste, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers.

Nifty is a Stock exchange, and if you have any idea about the share market, you must have heard about nifty. Hindustan Unilever Ltd or HUL is an amalgamation of Hindustan Vanaspati Manufacturing Company , Lever Brothers India Limited , and United Traders Limited . Collectively the largest providers of packaged food, beverages, household products, personal care products, water purifiers, and many more.

Why are they called Blue Chips?

Under the proposed scheme, the shareholders of HDFC will receive a total of 42 shares of the bank for every 25 shares held. Some have even hit their 52-week lows, urging investors to look for bargain bets in this market. PermalinkWhat would be your best advise to invest in shares long term as well as short term. Every Indian Pincode has a branch of this biggest bank in the country.

There are several bluechip stocks that have fallen drastically and never recovered. Satyam Computers, BHEL, Unitech, and the likes…even the world-renowned Lehman Brothers. This recent fall in the stock price has the company trading at a P/BV of 1.3x. However, it still trading at a premium to its 10-Yr median P/BV of 1.1x but at a discount to its industry P/BV of 1.6x. The revenues and profits have shot up by a 5-Yr CAGR of 11.4% and 70% respectively.

blue chip companies list

You can check about our products and services by visiting our website You can also write to us at , to know more about products and services. 4) No need to issue cheques by investors while subscribing to IPO. Being the biggest bank in the country, SBI is a Large-Cap stock. We undoubtedly had to consider this stock in our list of blue chip stocks in India.

Why are Blue Chip investments preferred?

A Maharatna energy company, IOC has a presence in oil, gas, petrochemicals, and alternative energy sources. Incorporated in 1907, Tata Steel is Asia’s first integrated private steel company and a leading manufacturer of steel around the globe. The company clocked a PAT of Rs 478.3 bn, an increase of 135.1% YoY.

BFL’s loan portfolio spans retail, small and medium-sized enterprises , and commercial customers, and the company has a large presence in both urban and rural areas of India. In addition to this, it deals in public and corporate deposits and provides a wide range of products and services related to finance to its customers. In this article, you will find the best chip stocks in India, which have made their mark over the years. Keep reading to know about the best blue chip stocks and their lists made on various factors. Pooled investment — We may opt for investment Blue Chip funds which track Blue Chip stocks with the pooled money and distribute the earnings based on the units held by us.

How blue chip stocks work?

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.

Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. Now, let’s go on to our next section, where we have made a different list for your consideration. Bharti Airtel Limited is a telecommunications firm that provides voice and data telecommunication services via wireless as well as fixed-line https://1investing.in/ networks and broadband technology. The SBI Bluechip Fund is headed by Fund Manager Sohini Andani and its major holdings include stocks of HDFC Bank, ITC, and L&T. There have been instances, even in India, where so-called Blue Chip companies have turned turtle. As we said earlier, the standard response in times of stress is to lay store by large-caps or Blue Chips.

Our ‘Leaders of Tomorrow’ basket contains top blue chip stocks in India which generated a whopping return of 38.12% in 2020. So, now that you have the list of the best blue chip stocks in India, the critical question is, ‘which blue chip stock will you invest in? He returned to his office after noticing these high trading prices to write about “Blue chip stocks”.

For example, companies with a market capitalization of $5 billion or more or the 100 largest companies in a country are included in the Blue Chip stocks list. Investors have always been advised to pick up stocks of blue-chip companies as part of their portfolio. But what exactly is a blue-chip stock, how do companies qualify to be one and why are they referred to as blue chips? 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. Intraday traders for instance take advantage of the stock market irregularities to earn profits on investments. Likewise in the stock market, the meaning of “Blue Chip Companies” is the most reputed, well-established companies who enjoy the trust of investors and greater financial and organizational stability.

Which blue chip stocks pay dividends?

They have a proven record of growth in the market and have been around for years on years. Easy to digest basic information for people who want to begin to invest in stock market. Infosys main business includes software development, maintenance, and independent validation services to companies in finance, insurance, manufacturing and other domains. It had a total of 276,319 employees at the end of December 2021.

Blue chip companies are low-risk high-return bets for the long term. Tata Consultancy Services Limited is an Indian multinational information technology service, consulting and business solutions company. It was established in 1968 as a division of Tata Sons Limited. HUL is one of the largest Fast Moving Consumer Goods Company in India with a heritage of over 80 years. HUL’s products include foods, beverages, cleaning agents, personal care products, and water purifiers. These companies have a good past track record of stable growth.

Safety of blue-chip stocks

Prevent unauthorized transactions in your account update your mobile number/ email Id with your Stock Broker. Receive information of your transactions directly from Exchange on your mobile / email id at the end of the day.” For example, we have the Kotak Nifty ETF which holds stocks of companies such as HDFC Bank, Reliance Industries, HDFC, ICICI Bank, and Infosys, which are all Blue Chips.

Always remember that past record is not a guarantee of future performance. Even the best of the companies can struggle, and therefore you should diversify your investments to reduce the risk of losing all your money during a bad run. Avenue Supermarts Ltd.is a Mumbai-based company, which owns and operates D-Mart stores.

Blue chip companies provide you with very good investment options and you have discovered the top 5 reasons as to how. Look out for blue chips stock list and you will know that your money is in safe hands. Consider dividends payouts, then the list changes a little, and so we have made the below list of top blue chip stocks in India based on the highest dividend per share in the past year. Pick up any IT background Engineering student; TCS is one of the top companies they aspire to work for. TCS is also the second-largest Indian company in terms of Market Capitalization.

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.

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. Some people believe the term to have been derived from the poker game, where a blue disk begets the highest value.

The Client shall pay to the Participant fees and statutory levies as are prevailing from time to time and as they apply to the Client’s account, transactions and to the services that Participant renders to the Client. Payments for Mutual Fund investments by XSIP/iSIP are done using my own bank account. Tick other boxes, tooIn a bear market or corporate earnings downgrade cycle, many analysts attach greater importance to PB ratio while valuing companies. Profitable companies with low P/B ratios are always preferable as they usually outperform when the market recovers, said analysts.

Blue chip companies are generally large cap companies; they are financially very strong companies. Their good reputation and goodwill are a bonus as these market leaders are well-established because of profitability, quick access for franchisees, and control of distribution. These tocks facilitate the construction of a sound investment corpus. Companies who issue these shares are well-established and enjoy great market repute; therefore, the shares issued by them are highly valued in the market.

India’s Most Profitable Bluechip Stocks. Here are the Top 8…

So befor investment you should always research about company management , who is running the company and what is the past record of their management. Company management plays an important role before investing in any company. These stocks will help your portfolio to overcome from market volatility. As on 29 sept 2022 , share price of Sun Pharma share was trading around 931 INR.

blue chip companies list

HDFC Bank provides a number of products and services which include Wholesale banking, Retail banking, Treasury, Auto Loans, Two Wheeler Loans, Personal Loans, Loan Against Property and Credit Cards. It is also the largest bank in India by market capitalization and the third-largest company by market capitalization on the Indian stock exchanges. What Is a Settlement Bank However, they are a good option for the investors who are looking for low-risk investments with decent returns.”, I replied. Ever thought of investing in giant MNCs like Google, Apple, IBM, Walmart, etc? Let us consider some Indian Business Giants like Bharti Airtel, Tata Consultancy Services, Reliance Industries, ITC, Infosys, etc.

  • The SBI Bluechip Fund is headed by Fund Manager Sohini Andani and its major holdings include stocks of HDFC Bank, ITC, and L&T.
  • Incorporated in 1907, Tata Steel is Asia’s first integrated private steel company and a leading manufacturer of steel around the globe.
  • Further, it is often seen that a Blue Chip business is less affected by unfavorable financial conditions during recessionary periods.
  • So, now that you have the list of the best blue chip stocks in India, the critical question is, ‘which blue chip stock will you invest in?

Investments in securities market are subject to market risk, read all the related documents carefully before investing. My gratitude goes to () for bringing me back to life, when it felt like all hope was lost. I had late payments and some medical bills that appears on my report, which they all appear as negatives. My score was precisely low and this prevented me from purchasing a car or even a home for my family. Apart from the cigarette industry, few other well-known businesses of ITC are Aashirvaad, Mint-o, gum-o, B natural, Sunfeast, Candyman, Bingo! Reliance is a market leader in its industry and has a lot of customers.

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