A blue-chip stock may be a large corporation with a decent reputation. These are usually large, well-established, and financially strong businesses that are operational for an extended time and have consistent earnings, generally providing dividends to shareholders.
A blue chip contains a market valuation of billions of dollars, is sometimes the market leader or one in every of the highest three corporations in its industry and is sort of always a household name.
Blue chip stocks are among the foremost popular among investors for all of those reasons. These stocks are regarded for his or her ability to resist difficult market situations while also providing strong returns in favourable market conditions. Blue chip stocks have a high tag since they need a powerful reputation and are frequently market leaders.
While dividend payments aren’t required for a corporation to be classified as a blue chip, most blue chips have a history of paying consistent or increasing dividends. Blue chip stocks are the industry’s titans—well-known, well-capitalized, long-term steady plays with strong financial prospects.
Reliance Industries, Tata Consultancy services, Infosys, ITC, Asian paints, HDFC bank are a number of India’s Blue-chip Stocks.