Best Blue Chip Stocks to Buy in India 2024

The stocks of Indian enterprises with a long history of consistently outstanding financial performance are known as Blue Chip Stocks. These stocks are equities of established, financially secure companies. The best blue-chip stocks to buy in India are, therefore, less vulnerable to price changes and less dangerous than other kinds.

Large-cap stocks on the stock market are referred to as “blue chip stocks” in stock market lingo. However, don’t you think the term “Blue chip” Is a bit strange?

Blue Chip: Why?

Why not a different color?

The term “blue chip” refers to the highest-valued blue poker chip. The most secure and reliable investments on the stock market are the best blue chip stocks in India. These are frequently substantial businesses with a proven track record of steady growth and profitability.

Have you ever wondered how these companies build their name in the market?

All these big businesses provide the customer or buyer with sizable earnings, sizable dividends, and rising per-share earnings. It is how they built their name to be the best blue chip stocks in India.

The Indian market has its bulls. The best blue chip stock companies like the homegrown brands of India, the Tata Group, Reliance Industries Ltd., and HDFC Bank are a few examples. You may uncover the top Indian chip stocks that have established themselves over time in this post. To find out which stocks made the best blue chip stocks in India Market or best blue chip stocks to buy, keep reading.

What are Blue Chip Stocks in India?

The stocks of companies with strong financials, solid management, little to no liabilities, and a track record of successful sales are considered the best blue chip stocks in India. In addition, given the exceptional quality of the products and services they offer, these companies have incredibly high brand values and are typically recognized as household brands across the nation.

Due to its scale, a Blue Chip corporation is well-known, recognizable, and has a broad distribution network. These businesses often offer high-quality services and products that are well-liked across the nation. These characteristics make such market giants more resistant to downturns in the economy.

For those who prefer a lesser level of risk but still want their money to multiply, the best blue chip stocks in India investments are the premium option choice. Even in challenging market situations, they might nevertheless expand or generate profits.

When compared to mid-cap or small-cap companies, these market giants of the Indian Market are less susceptible to broad market changes. Keep on reading to know the best blue chip stocks to buy.

Read more: Best Websites For Indian Stock Market Analysis

Top 10 Best Blue Chip Stocks in India 2024

Here, let’s discuss the top 10 blue chip stocks in India in detail:

1. Reliance Industries Limited

In India, Reliance is a well-known brand and is one of the top 10 blue chip stocks in India. Nearly everyone in India is familiar with Reliance as the best blue chip stock to buy. It was founded in 1960 and is a multinational conglomerate in India. They can be found practically everywhere, whether it be in the industries of petroleum, natural resources, energy, retail, textiles, communications, or other sectors. Over 6.98 crores of rupees in income were generated by the company’s various activities combined in the fiscal year 2021.

It has a long history of financial stability, consistent growth, and excellent market performance, which makes it the best blue chip stock in India. Adding to this, its strong liquidity and widespread investor ownership make it a safe and dependable investment choice.

Among Indian businesses, Reliance is among the most profitable. According to Fortune Global 500, Reliance is the 96th-largest company in the world. Unquestionably, one of the best blue chip stocks in India is Reliance. India’s largest publicly traded corporation by market capitalization is Reliance. The Reliance group was initially in the petrochemical enterprise. Still, with the rise of Reliance Retail and Reliance Jio, it has transformed into a conglomerate that operates in the retail, telecom, and technology sectors.

Under the name Reliance Jio Infocomm, the corporation has launched its 5G services. The company has been concentrating on its Reliance retail division’s retail business in addition to this. It has acquired a few businesses under labels, including Independence and Campa Cola. All these factors make it the best blue chip stock to buy.

A financial snapshot of Reliance Industries Ltd. As of Feb 2023

2. Tata Consultancy Services Ltd

They consider working at TCS to be one of the best firms. a TATA group-owned Indian multinational IT business. According to market capitalization, TCS is the second-largest Indian corporation. Since its incorporation in 1968, it has become more powerful. One of the top 10 blue chip stocks Indian stock market is Tata Consultancy Services (TCS). It is a well-known technological development and consulting firm that offers a range of solutions, including business process outsourcing, digital solutions, and software development. TCS consistently ranks among the top-performing businesses in the IT industry and has a proven track record of outstanding financial performance.

Additionally, the business is experimenting with emerging technologies like blockchain-based technology, machine learning, and AI. It is a business that has a strong presence across several markets and sectors.

A financial snapshot of TCS as of Feb 2023

3. Hindustan Unilever Ltd

Hindustan Unilever Ltd., also known as HUL, is an abbreviation of Hindustan Vanaspati Manufacturing Company, United Traders Limited, and Lever Brothers India Limited.

Up to 61% of Hindustan Unilever Ltd’s total share capital is held by the company’s promoters, who also own over 64 product brands and over 21000 workers. Hindustan Unilever Ltd has a crowned history of over 80 years; it is one of India’s major fast-moving consumer goods companies.

Sixteen of its brands have yearly sales of over Rs. 1,000 Cr., while five of them have annual sales exceeding Rs. 2,000 Cr. Hindustan Unilever Ltd offers a wide range of goods, including drinks, groceries, cleaning supplies, water purifiers, and cosmetics.

With the help of a strategic alliance with Nutritionlab Private Limited and Zywie Ventures Private Limited, the company is growing in the quickly developing Health and Well-Being sector. Hindustan Unilever Ltd is among India’s top 10 blue chip stocks to buy, thanks to all of the characteristics mentioned above.

A financial snapshot of Hindustan Unilever Ltd. As of Feb 2023

4. Infosys Ltd

A leading provider of IT consulting and services, Infosys Ltd., was established in 1981. They began their journey with a capital of $250 and are today a firm worth $79,7 billion. One of the best IT businesses to work for is Infosys. The next-generation digital services offered by Infosys Limited help clients carry out their digital transformation initiatives. Infosys Limited also provides consultancy and technology services.

The best blue chip stocks in India assist their clients with process digitization, cloud migration, workplace and business model development, improved cybersecurity measures, and IT cost structure optimization. Although its headquarters are in Karnataka, the company was founded in Pune. It is present in 220 locations throughout 46 nations. In terms of revenue, Infosys is right behind TCS. One of the best blue chip stocks in India is a large-cap business in the IT industry that pays investors a respectable dividend per share.

A financial snapshot of Infosys Ltd. As of Feb 2023

5. HDFC Bank Ltd

One of the top and most significant private sector banks in India is HDFC Bank. In 1994, it was the first private sector bank to receive RBI permission. It has a vast network with more than 5608 bank branches and a massive number of 16087 ATMs in around 2902 Indian cities. In India’s banking sector, HDFC Bank is the top private sector institution. It has a significant market share advantage over other lenders in the retail loan sector, which is driven by credit card and home, auto, and personal loans.

Given that the median age of the population in India is low, the bank is well-positioned to take advantage of this fact and accelerate its expansion thanks to a strong presence in the retail credit market. As a result, the company registered INR 1,28,552 crores in revenues for FY21. It is one of the largest large-cap banking companies in India and the best blue-chip stock in India.

A financial snapshot of HDFC Bank Ltd. As of Feb 2023

6. Bharti Airtel Limited

A telecommunications company called Bharti Airtel Limited offers broadband technology, wireless networks, fixed-line networks, and data and voice telecommunication services. Leading international telecommunication provider Bharti Airtel Limited has benefits in 18 nations in Asia and Africa. With its corporate headquarters in New Delhi, India, Bharti Airtel is one of the three top mobile operators internationally and the best blue chip stocks

Along with offering an extended range of connectivity on a national and international scale, the best blue chip stocks in India provide a comprehensive suite of telecom products to their business clients. Additionally, the company provides IPTV and digital TV services. All of these services are offered directly or via affiliated businesses under the unified brand “Airtel.”

A financial snapshot of Bharti Airtel Limited As of Feb 2023

7. ITC Ltd.

One of India’s top private sector businesses is ITC Ltd. Cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods, and confectionery are among the industries in which ITC is present. IT-branded clothing, personal care items, office supplies, safety matches, and other FMCG items.

ITC is an exceptional market leader in its historic businesses, including Hotels, Packaging, Cigarettes, Agri-Exports, and Paperboard. Still, it is also quickly acquiring market share in its newly emerging industries, including Branded Apparel, Packaged Foods, Confectionery, Stationery, and Personal Care. ITC becomes the first company in the stationery business to produce $1 billion. By volume, the Engage line of Deos from ITC is second in the video market. ITC replaces TCS as the most admired corporation in India.

A financial snapshot of ITC Ltd. As of Feb 2023

8. Asian Paints Ltd.

Over 50% of the organized domestic paints market is controlled by Asian Paints, making it the market leader. Asian Paints has a share of over 60% in the decorative colors sector, which makes up between 70 and 75 percent of the Indian market. The best blue chip stocks in India, Asian Paints ranks among the top in terms of performance on the market. The business frequently posts significant earnings and dividends, contributing to its substantial financial success.

Additionally, the best blue chip stocks have a strong position in several paint industry sectors, including home renovation goods, decorative paints by Asian Paints, and commercial paints. It has been able to maintain a solid market position because of its broad product variety, substantial distribution network, and excellent brand equity. When looking for a safe and reputable stock to buy on the Indian stock market, investors frequently choose Asian Paint.

A financial snapshot of Asian Paints Ltd. As of Feb 2023

9. Nestle India Limited

The best blue chip stock in India, Nestle India Ltd. has a long history and a solid financial background. The company is a significant producer of Indian pre-packed food products, and the beverage industry has a market capitalization of nearly $20 billion. One of the largest FMCG companies in India, Nestle India Ltd., is largely engaged in the food industry, which includes the product categories of Dairy Products and Nutritional-cooking pre-prepared additives, pre-prepared foods, confectionery, liquid, and powdered beverages, etc.

The company produces goods under the name of brands such as Nestea, Nescafe, Milkybar, Kit Kat, Milo, Bar-One, and Maggi. It has four branch offices and eight manufacturing facilities spread all across India, giving it a presence there. The countrywide branch offices support the company’s efforts to market and sell its goods. In general, individuals looking for stability and long-term growth might consider investing in Nestle India Ltd.

A financial snapshot of Nestle India Ltd. As of Feb 2024

10. HCL Technologies Ltd

HCLTech is a multinational technology business with 222,270+ employees spread over 60 countries. It provides market-leading skills in the areas of engineering, cloud, and digital that is backed by a broad range of products and services. They collaborate with clients in all significant industry sectors, offering business solutions for the industrial, biosciences and medical, technologies and services, telecommunications and entertainment, commerce and consumer packaged goods, etc.

The company’s mission is to accelerate progress by fusing the greatest available technology with our workforce. As a result, they are accelerating development for all involved parties, their stakeholders, and partners—as well as the environment and communities.

The company’s main business activities include offering a variety of infrastructure, business process outsourcing, and software services.

A financial snapshot of HCLTechnologies Ltd. As of Feb 2024

Read more: How to Invest in Stock Market for Beginners

Things to Keep in Mind While Investing in a Blue Chip Stock

Here are some things to think about before buying blue chip stocks:

1. Market Situation

Stocks with a high market capitalization, such as Blue chip stocks, are typically more resilient. The stock’s performance should still potentially be impacted by the market’s current state and other factors.

2. Financial and Company stability

An excellent, well-known corporation with a steady financial history and business model is a blue-chip stock. To guarantee that an investment is financially stable, it is crucial to be careful with the company’s financial records and delivery performance.

3. Leadership and Management

The performance of a stock can be strongly impacted by a company’s team. Therefore, while choosing an investment, take into account the caliber and history of the company’s leadership.

4. Diversity before investing

A well-diversified investing strategy should contain a variety of assets, including the best blue chip stocks in India. First, examine your stock’s overall structure to evaluate whether buying the best blue chip stocks in India can assist in offsetting monetary risk.

5. Stock Valuation

Please take into account the valuation of the stock in light of its past financial results and projected growth prospects. The best blue chip stocks shouldn’t be overpaid because they might not offer the promised return on investment.

6. Potential for Growth in Income

Even though the best blue chip stocks in India might not have as much room for growth as smaller, more creative businesses, it’s still crucial to think about whether the business can keep expanding and raising its profits over time.

7. Rate of Dividends

Dividends are frequently given to shareholders of blue-chip businesses, offering a reliable source of income.

Conclusion

The top corporations with a track record of success, return delivery, and future growth is represented by the best blue chip stocks, which are investments in those firms. The value of a firm in India is largely derived from blue chip stocks. As a result, they are respected in the financial community, and their large market capitalization reflects investors’ faith in them. The blue chips have a significant influence over their respective industries because they are some of India’s largest firms. As a result, these best blue chip stocks in India carry extremely little risk and are still capable of generating steady profits in the future.

Best Blue Chip Stocks in India – FAQs

Do the top 10 blue chip stocks in India provide good value?

Ans. When a stock is selling below its intrinsic value that is, below the price that its fundamentals would normally command-it is said to be a value stock. As a result, each situation will determine whether the stock qualifies as a value stock.

How can you purchase the best blue chip stocks?

Ans. Through your Demat and Trading account, you can purchase the best blue-chip stocks on an individual basis. You can also choose equity funds that follow the blue-chip companies.

Do the best blue chip stocks in India carry lower risk than other stocks?

Ans. Due to the mature, financially sound, and historically profitable businesses they represent, blue-chip stocks are typically seen as less hazardous than other types of equities. Blue chips fluctuate in value as all equities do, but over the long run, they often produce moderate gains rather than losses.

Are Blue Chip Stocks dividend-paying?

Ans. By definition, blue-chip stocks are exempt from paying dividends, yet many of them do. As a result, many best blue chip stocks in India decide to give some of their yields to their investors. They provide rewards rather than reinvest all their yields in maturation, growth, and product expansion because most are no longer actively in growth phases.

What characterizes a Blue Chip company?

Ans. The titans of their industries are the best blue chip stocks in India. They are renowned, capitalized handsomely, and provide prolonged stability with promising monetary futures.