Large cap stocks are the most popular and most traded stocks. They represent the largest companies in a country's equity market, and they tend to be more stable than smaller companies. Large cap companies typically have a large market capitalization, which means they have a high share price relative to their overall size.
Large cap stocks are often considered safer investments because they have been around for longer and have proven themselves over time. You can think of them as blue chips—they've survived downturns and other setbacks, but also tend to pay out dividends every quarter or so (which means you're getting some money back every quarter).
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S.No. |
Company Name |
Industry |
|
1. |
Multinational Conglomerate |
|
|
2. |
Information Technology |
|
|
3. |
Bank – Private |
|
|
4. |
Information Technology |
|
|
5. |
FMCG |
|
|
6. |
Finance – Housing |
A company's stability is an important factor to consider before investing in its stock. Stable companies tend to pay dividends, and their earnings are not affected by a change in economic conditions. You can check its financial performance over the years and even compare it with its peers to determine how stable it is.
This refers to how much information is available about a company on its website or through other sources like news articles or reports. A company that has been transparent about its operations and business strategy will be able to provide more accurate financial statements and projections than one that has not been as transparent.
If a company is paying dividends, it means that it has grown enough to be able to distribute profits among shareholders. The dividend payout ratio indicates how much of the profit is being paid out as dividends each year. Any company that pays regular dividends shows confidence in its ability to stay profitable and pay out dividends over time, making it an attractive investment option for most investors.
Maintenance quality refers to the ability of a company's operations to maintain high levels of efficiency over time. If a company has maintained high maintenance quality for many years, then chances are that it will continue doing so in the future as well.
Reliance Industries is not just the largest publicly traded company in India by market capitalization but also the largest company in terms of revenue. RIL’s diverse businesses include energy, natural gas, retail, renewable energy, mass media, textiles, and its telecommunications business run under the name Reliance Jio.
Tata Group’s IT services and consulting company Tata Consultancy Services is the largest IT services company in India in terms of market capitalization. This Tata Group subsidiary operates in 149 locations across 46 countries.
HDFC Bank is the largest private sector bank in India in terms of market capitalization. HDFC Bank was incorporated in 1994 as a subsidiary of Housing Development Finance Corporation (HDFC), which also features on this list.
The bank offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.
The second IT company to feature amongst the top large cap stocks according to market cap, Infosys was started by Narayan Murthy along with six engineers in Pune in 1981. The company is also the second-largest Indian IT company in terms of revenue after TCS.
Boost, Horlicks, Dove, Cornetto, Lux, Lifebuoy, Pears, Pepsodent, Sunsilk, Bru, Surf Excel, Lakme, Rin, Brooke Bond Tea, Kwality Walls, Kissan, all of these sound familiar, don’t they? Hindustan Unilever is the parent company of the brands that countless Indians use in their day-to-day life.
Large cap stocks are generally more expensive than other types of stock because they have a greater market capitalization. This means that the company is worth more than smaller companies, so it needs to pay higher salaries and bonuses to attract good employees.
The price of large cap stocks fluctuates less than small or mid-cap stocks because their value is based on an estimate of how much money it would take to buy all of the outstanding shares. This makes them an appealing investment for investors who want steady returns over time.
Disclaimer: The views expressed in this post are that of the author and not those of Groww.
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Research Analyst - Bavadharini KS