Good evening :)

Best Large Cap Stocks in India

Large cap stocks are shares of companies with a market capitalisation of over Rs. 20,000 cr. These are the largest and most established companies in India, often referred to as “blue-chip stocks” due to their financial stability and strong performance.

Best Large Cap Stocks in India

Overview of Best Large Cap Stocks

Bajaj Holdings and Investment Ltd

Bajaj Holdings & Investment Limited (BHIL) emerged from the 2007 demerger of Bajaj Auto Limited, which split into three entities: BHIL, Bajaj Auto Limited, and Bajaj Finserv Limited. BHIL, a systemically important non-deposit-taking Non-Banking Financial Company (NBFC), operates under the ‘Investment and Credit Company’ category and is registered with the Reserve Bank of India.

Power Grid Corporation of India Ltd

Power Grid Corporation of India Limited (PGCIL), a public sector company, was established on 23rd October 1989 to develop extra-high voltage alternating current and high-voltage direct current (HVDC) transmission lines. The company went public in 2007, listing on both the BSE and NSE.

Adani Ports and Special Economic Zone Ltd

Adani Ports and Special Economic Zone Limited (APSEZ), India’s leading private port and SEZ enterprise, began as Gujarat Adani Port Ltd (GAPL) on 26th May 1998 to develop a private port at Mundra on India’s west coast. The company focuses on developing, operating, and maintaining port infrastructure, including port services and related projects.

Info Edge (India) Ltd

Info Edge (India) Ltd, India’s leading online classifieds company, began its journey on 1st May 1995 as Info Edge (India) Private Limited. It launched its first business, the online recruitment platform naukri.com, and has since diversified into multiple sectors, including 99acres.com (online real estate), jeevansathi.com (online matrimonial), and shiksha.com (online education services).

ITC Ltd

ITI Limited leads the telecom solutions industry, providing switching, transmission, and access equipment. Established on 25th January 1950, it became India’s first Public Sector Unit. In 2003-04, it introduced new products to the BSNL network, including a managed leased line network, digital loop carrier SDH, and CDMA-based wireless terminals.

Benefits of Investing in Large Cap Stocks

Stability and Reliability

Large-cap companies in India are typically well-established, with proven track records of performance. Their size and financial strength make them more resilient during market fluctuations, providing greater stability compared to smaller firms.

Lower Volatility

Due to their market position and diversified revenue streams, large-cap stocks tend to be less volatile. They experience smaller price swings, making them a safer option for conservative investors who prefer consistent performance.

Regular Dividend Payouts

Many large-cap companies distribute regular dividends to shareholders, offering an additional income stream. This makes large-cap stocks attractive to investors seeking steady, passive income along with capital appreciation.

Long-Term Growth Potential

While large-cap stocks may not grow as rapidly as smaller companies, they have the resources and industry leadership to sustain steady growth over time. This long-term growth potential, combined with stability, makes them an appealing option for wealth preservation and gradual accumulation.

Strong Liquidity

Some large-cap stocks can be highly liquid, making them easy to buy and sell due to high trading volumes. This liquidity ensures investors can enter or exit positions quickly without significantly affecting stock prices.

Blue-Chip Reputation

Large-cap stocks are often called “blue-chip” stocks, signifying their industry leadership and a reputation for reliability and strong corporate governance. This status adds a layer of investor confidence.

Install the Tickertape app and enjoy a more hands-on investing experience
  • portfolio-iconReceive real-time market alerts for timely decisions
  • portfolio-iconMonitor your portfolio from the palm of your hands
  • portfolio-iconWatchlist stocks and mutual funds to stay updated

Factors to Consider Before Investing in Large Cap Stocks

Stability

A company’s stability is a crucial factor to consider before investing. Large-cap stocks tend to face little fluctuations in their price. Additionally, stable companies tend to pay dividends.

Transparency

Large-cap companies, including the top 10 large cap stocks, usually have transparent earnings reports and corporate structures. This transparency makes it easy for investors to know everything about the company and difficult for the company to get involved in a scam or price manipulation.

Management

Large-cap companies have the capacity to maintain high levels of efficiency over time. Hence, when it comes to choosing large-cap companies for your investment portfolio, consider management and quality to be among the most important factors.

Frequently Asked Questions on Large Cap Stocks

  1. 1. How many large cap companies in India are there?

    Large-cap stocks are companies with a large cap company market capitalisation of Rs. 20,000 cr. and more. According to SEBI’s rules, the top 100 companies listed on the stock market (the number 1 to 100 are in accordance with their market capitalisation) are the large-cap companies of India.

  2. 2. How to find large-cap stocks based on net profit margin?

    Follow the below-mentioned steps to get your updated list of large-cap stocks based on net profit margin:
    1. Step 1: Go to Tickertape Stock Screener
    2. Step 2: Select ‘Large Cap’ from ‘Market Cap’
    3. Step 3: Under ‘Profitability’, choose ‘Net Profit Margin’ and sort the list from highest to lowest.
    There you go! Your updated list of the best large-cap stocks based on net profit margin is with you! You can explore over 200 filters to get your desired list of the best stocks.

  3. 3. Are large-cap stocks a risky investment?

    Large-cap stocks typically exhibit stability but remain vulnerable to market risks. Economic downturns, industry-specific challenges, and global events can impact their performance.

  4. 4. Can large-cap stocks be a good investment?

    Investors can expect substantial capital appreciation, consistent compounding, and regular dividends from large-cap stocks. These stocks suit risk-averse investors with a long-term outlook, as they present a relatively low risk of capital erosion.

  5. 5. How much should I invest in large-cap stocks?

    Your decision to invest in large-cap stocks may hinge on various factors, including your income, age, investment goals, and time horizon. Large-cap stocks tend to be more stable and less risky than small and mid-cap companies, providing added stability to your portfolio.