Top 10 Blue Chip Companies in India Best Source of Passive Income

However, a prudent investor would irrespective of the stocks he holds – be it small caps or blue chips will always keep a tab on the latest news, price movements, and chart patterns. Kotak Mahindra Bank, too, emerged as a player who adopted a prudent and cautious approach, targeting only high-rated customers and sectors. This aided the bank’s low levels of bad loan formation over the years (Net NPA at 0.64%). Bank’s deposit franchise continues to be granular and robust with deposit accretion staying healthy with an industry leading CASA ratio of 60.7%.

In private sector Reliance Ind is the highest tax payer company in India. Some people are not agree with this though they say, actually blue chip came from a very famous game Poker, where most valuable chips are referred with name blue chips, and their color is also blue. Later this name blue chip stock gets famous all over the world. He mostly refers those stocks https://1investing.in/ with the name Blue Chip Stocks which price cross the level of $200. 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. However, before investing in blue-chip companies,individuals should equip them with a few essential details.

Nifty Blue Chip Stocks

They have a proven record of growth in the market and have been around for years on years. Prudent research and even a consultation with an investment adviser can not be underlined enough when it comes to investing directly in equity stocks. There are plenty of market-linked products but Blue Chip shares or large-cap equity shares are often the most coveted instruments of them all.

blue chip companies list

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Originally, this connotation was only related to high priced stocks but then later as time passed by, this term was broadly defined as High Quality Stocks. Gingold noticed that many shares were trading at $200 to $250 or more as he was standing by the stock ticker of a brokerage firm. 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. The company has a strong presence across the entire steel manufacturing value chain, from raw materials to distribution of steel and other value-added products. It’s well-poised to grow briskly from the government’s spending push on infrastructure.

How to choose and invest in blue chip companies ?

Her goal is to make common retail investors financially smart and independent. Blue Chip investments tend to grow steadily & are less volatile and pay regular dividends. But before we go into the history of blue chip stocks, let me reveal the top 10 blue chip stocks in India. Blue Chip India Limited is a company, which is engaged in trading of shares and securities. With proficient management in tow, the company has been rewarding its shareholders with an average dividend yield of 0.4% over the past 5 years, in line with the industry average of 0.5%. With that in mind, we pen down a list of 5 bluechip stocks hitting their 52-week lows.

Are blue-chip stocks safe?

No stocks assure the safety of the investment. 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.

The best blue chip stocks in India are typically characterized by a high market capitalization, a proven track record of sound financial management, and tremendous growth potential. Blue chip companies have the major market share a small percentage price change in the company’s shares could drastically affect the market and investor profits. 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.

R Model Portfolio

HUL has been leveraging its distribution strengths to adapt its channel strategy for its products and market segments. On a consolidated basis, the financial risk profile is supported by strong net cash accrual and no outstanding debt as on March 31, 2021. A significant subsidiary of Oracle Corporation, Oracle Financial Services Software Ltd. focuses on offering IT solutions to the financial services sector.

In India, Nestle India Ltd. has 4 branch offices and 8 manufacturing units. The company has consistently concentrated its efforts to improve and understand the changing Indian lifestyles and anticipate consumer needs. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.

Blue Chip Stocks in India – Highest Market Cap

– Intraday trading solely relies on stock price fluctuations. Since blue chip stocks generally tend to stay stable in their financial positions an intraday trader can not make profits by trading them. If we can afford to take on moderate risk in our investment portfolio, we may consider one with at least 50 percent comprising Blue Chip stocks or a Blue Chip fund. The rest may have a diversified spread of mid-cap and small-cap stocks to infuse that right dose of exponential growth prospect. To bypass market risks and inflation, commodities or ETF tracking commodity indices could also be made a part of our portfolios.

  • The company’s average dividend yield comes to around 0.3% for the past five years, a little below the industry average of 0.5%.
  • With over 5608 branches and ATMs in 2902 Cities, it has a vast network.
  • Companies that benefit from the significant competitive advantage over their peers give them the potential to outperform in their markets.
  • Trade Brains is a Stock market analytics and education service platform in India with a mission to simplify stock market investing.

Suzuki, a Japanese carmaker, created a subsidiary in India called Maruti Suzuki India Limited, which was formerly called Maruti Udyog Limited. It was owned and run by the Indian government from 1981 until 2003. The Indian government sold the company to Suzuki Motor Corporation in 2003. The Government of India’s Ministry of Coal is the owner of the central public sector enterprise known as Coal India Limited .

What does it mean to be a Blue Chip stock?

This famous term echoing through Wall Street even today comes from an employee named “Oliver Gingold” of a famous company “Dow Jones”. When it comes to stock selection, valuations play a key role. There are various other important factors driving your decision-making process. Nestle’s industry dominance and well-established brands have propelled its margin profile culminating in healthy cashflows. A pioneer in the culinary segment, it offers a range of products under the brand name Maggi. It enjoys leadership in milk and milk products, beverages, prepared dishes, and cooking aids, chocolate and confectionery.

A provider of telecommunications tower infrastructure services is Indus Towers Ltd. For mobile carriers, the corporation deploys, owns, maintains, and operates telecom towers and communication structures. The company’s primary source of income is the leasing fee it charges mobile tower renters. As of July 2018, it held a market share of 53 percent in the Indian passenger car industry. Passenger cars, spare parts & components, light-duty utility vehicles, service income, mold & dies, scrap, etc. are a few of the major market categories that the company serves. The business has many brands and products which are industry leaders and has no debt on its financial sheet.

blue chip companies list

Investing in Blue Chip stocks is recommended for investors with a conservative risk profile to meet their long term goals of at least 5-7 years. But investing in these companies is ideal for all investors to grow their wealth over a long period without exposing themselves to Why do nations trade a lot of risk and volatility. Some portion of an investor’s portfolio can always be exposed to blue chip stocks for stable less risky returns. Photo by Jason Briscoe on UnsplashYou can purchase the best blue chip stocks in India from any brokerage platform of your choice.

Why is it called blue chip company?

Origin. As befits the sometimes high-risk nature of stock picking, the term ‘blue chip’ derives from the card game poker. The simplest sets of poker chips include white, red, and blue chips, with American tradition dictating that the blues are highest in value.

By 2020, the L&T Group had 118 branches, 25 joint ventures, 6 partners, and 35 joint operations firms. Tata Steel, the very first integrated private steel corporation in Asia, was founded in 1907 and is now a major producer of steel all over the world. Currently, the company’s vast line of steel products, including coated steel, rebars, hot rolled, cold rolled, wire rods, tubes, and wires, is based on the 34 MTPA crude steel manufacturing capacity. The business has continued to pay off its debt, which has contributed to some of the best earnings in Tata Steel’s history.