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Best Large Cap Stocks to Invest in India 2022

16 June 2022

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). 

Best Large Cap Stocks in India 2022

S.No.

Company Name

Industry

1.

Reliance Industries

Multinational Conglomerate

2.

TCS

Information Technology

3.

HDFC Bank

Bank – Private

4.

Infosys

Information Technology

5.

Hindustan Unilever

FMCG

6.

Housing Development Finance Corporation Ltd.

Finance – Housing

Factors To Consider Before Investing In Top Large Cap Stocks

  • Stability

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.

  • Transparency

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. 

  • Dividend Payouts

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. 

  • Quality of Maintenance

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.

Top Large Cap Stocks in India: Performance Overview

1) Reliance Industries

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.

2) TCS

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. 

3) HDFC Bank

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.

4) Infosys

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.

5) Hindustan Unilever

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.

Conclusion

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

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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