Top blue chip stocks to purchase right now in India 2023
By: ISL Team | 4 March, 2023
Due to their immense brand value and financial strength, blue chip companies always have a large following. As you read this post, do you want to know which ones are at their best?
Before getting into the specifics of which blue chip stock is superior, let's review what a blue chip stock is and what investing in blue chip stocks entails in general.
Acquiring knowledge on blue chip stocks :
- Large businesses with enormous financial resources, a sizable market share, and a solid track record of performance are represented by blue chip stocks. Some characteristics of a blue chip corporation are high revenue, profitability, and steady performance of the stock price.
Advantages of investing in blue chip stocks :
- 1.fewer possibilities of stock price declines :A blue-chip firm often has the brand value and track record that can enable it to obtain money more quickly and readily than a small-cap company. It reduces the possibility that the stock price will fall. Therefore, blue chip corporations can more easily recover from financial crises, whether internal, global, or both.
- 2.Power and prestige:Large investors are significantly affected by this. A more significant percentage of a major company's total market capitalization increases the importance and influence of the substantial investor.
- 3.Diversification:Investors may add stability (like an anchor) to their portfolio by purchasing stocks with higher levels of price stability. They can then use the remaining cash in their corpus to make riskier investments, such as small-cap stocks. Blue chip stocks frequently have diverse businesses of their own, which reduces the risk for them.
| Company | Price change in the last 3 years | Market capitalisation |
|---|---|---|
| Adani Enterprises | +1734.20% | ₹ 4,36,284 cr |
| Infosys | +100.11% | ₹ 6,27,093 cr |
| SBI | +83.46% | ₹ 5,40,118 cr |
| Asian Paints | +74.40% | ₹ 2,89,268 cr |
| Reliance | +67.32% | ₹16,54,891 cr |
| ICICI Bank | +65.56% | ₹ 12,12,848 cr |
| TCS | +50.57% | ₹ 6,27,254 cr |
| ITC | +39.58% | ₹ 4,05,883 cr |
| Hindustan Unilever | +33.22% | ₹ 5,95,880 cr |
| HDFC Bank | +27.26% | ₹ 8,97,885 cr |
Considerations before buying a blue chip stock:
When an investor decides to put money into a blue-chip firm, it is probable that they will hold onto it for a long time. So, before making an investment, individuals should think about the following:
- 1.Diversification : It is important to have equities that span several industries, since this will enable the portfolio to perform better even if one industry has stagnation.
- 2.Profits growth potential : A huge corporation may occasionally be willing to endure years of losses in order to develop a significant invention, but in the meanwhile, the stock price may suffer. So, it's crucial to determine whether the stock price is increasing steadily.
- 3.Dividend yield :Even if a company's development is slow, it may still be able to provide you with excellent returns due to the huge dividends it pays out to investors.
- 4.Valuation :In order to prevent the blue chip stock from consistently and gradually losing value, it is crucial to determine whether it is now trading at fair value.
- Considering that you now understand the top blue chip stocks for 2023, consider setting aside some time and money to invest in a stock you find appealing. If you don't already have an trading & demat account, consider opening one with Investmentor Securities, Gujarat's reputable online stockbroker.