The economy is not immune to the recession. It frequently adheres to the economic cycle, an irregular but largely predictable pattern. Years can often pass between expansion phases and their peak.
A period of contraction, or a recession, follows before the economy experiences a trough before the following expansion. Investors may suffer greatly during recessionary times. During the contraction phase, stock market reversals and bear markets are typical.
Some stock market segments, however, are comparatively resistant to the ups and downs of the business cycle. As a result, they provide investors with largely recession-proof stocks, which they can hold during economic turbulence. So if you're concerned that the economy is about to enter a difficult period, take a closer look at which stocks have stood their ground during previous recessions.
This blog has compiled a list of the top 5 stocks that have historically survived the recession and economic crashes.
S. No. |
Name of the Company |
Type of Industry |
1. |
Multinational Conglomerate |
|
2. |
Banking |
|
3. |
Information Technology |
|
4. |
Technology, Engineering, Construction and Manufacturing |
|
5. |
Non-Banking Financial Company |
Indian business Reliance Industries Limited operates in several industries, including energy, textiles, petrochemicals, telecommunications, retail, and more. With its headquarters in Mumbai, Reliance Industries Limited is a multinational conglomerate company in India. Energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles are just a few of the many industries it is involved in.
One of India's most profitable businesses, Reliance is also the country's most significant publicly traded business in terms of market capitalization and revenue. With a total of 80,000,00 employees worldwide, it is also one of the largest employers in India.
State Bank of India (SBI) is a statutory organization for financial services and a multinational public sector bank with its headquarters in Mumbai, Maharashtra. SBI, the only Indian bank on the Fortune Global 500 list of the largest corporations in the world in 2020, is the 49th-largest bank in the world by total assets and is ranked 221st overall.
It is a public sector and the biggest bank in India, with a 25% share of the total loan and deposit market and a 23% market share for assets. With nearly 250,000 workers, it ranks as India's fifth-largest employer.
Infosys Limited, a multinational information technology company based in India, offers business consulting, information technology, and outsourcing services. Bangalore serves as the company's headquarters; it was established in Pune.
According to 2020 revenue estimates, Infosys is the second-largest Indian IT company after Tata Consultancy Services. Moreover, it is ranked as the 602nd largest public company worldwide by Forbes Global 2000. In addition, on August 24, 2021, Infosys became the fourth Indian company with a market capitalization of $100 billion.
With operations in engineering, manufacturing, construction, information technology, financial services, and technology, Larsen & Toubro Ltd., also known as L&T, is an Indian multinational conglomerate with headquarters in Mumbai.
The business is ranked among the top five construction firms worldwide. Henning Holck-Larsen and Sren Kristian Toubro, two Danish engineers seeking safety in India, founded it.
A non-banking financial services provider with its main office in Pune is called Bajaj Finserv Limited. It is concentrated on insurance, wealth management, asset management, and lending.
The RBI has registered Bajaj Finance Limited as a non-banking financial company that accepts deposits. The company has a sizable presence in urban and rural India and a diverse lending portfolio that includes lending to retail, SMEs, and commercial customers.
You may also want to know the History of Stock Market Crashes In India - Known And Unknown. |
Companies | Type | Bidding Dates | |
Regular | Closes 24 Jan | ||
SME | Closes 24 Jan | ||
SME | Closes 27 Jan | ||
SME | Closes 28 Jan | ||
SME | Opens 24 Jan |
There were a lot of stocks that performed well during the market crash. A few of them are mentioned above based on their performance history. Remember, it is necessary to trade and invest carefully while investing during recession and market crashes. Depending on your risk appetite, market situation and your financial objectives, invest carefully.
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Research Analyst - Bavadharini KS