Although investing in companies listed on the stock market has become effortless, an investor should not be facile while choosing the companies to invest in. Investment comes with a goal, some investors have short term goals, while others like to wait longer in the market.
These different groups of investors build their portfolios differently in their own ways. However, what can be a straightforward and simple answer to the question of which companies to invest in?
Well, to play safe and to earn positive returns gradually, the best investment shortlist can be nothing other than top 10 companies in India or rather say top 10 companies by market cap.
Gather enough knowledge before making your investment journey.
Reliance Industries or simply Reliance is the largest company in India in terms of market capitalization, the reason why it is on the crest of the list of top 10 companies in India. What is so special about it?
● Reliance Industries started from being a textile business and has now evolved into an integrated player having its strong foothold in major industrial sectors like retail, energy, oil, material, and digital services.
● Almost half of Reliance’s revenue comes from its refinery business.
Jio, which is the largest telecom service provider in India is a part of Reliance Industries.
● Reliance Industries is also exploring the market of green energy and has big investments for the same in the upcoming years.
● Reliance’s customs and excise duty contributes almost 5 percent to the total revenue of the Indian government.
● TCS is the biggest information technology (IT) and consultancy services company in terms of market capitalization. It sits right below Reliance in the list of top 10 companies in India. It is now one of the most valuable IT services companies in the world.
● TCS is a subsidiary of TATA Group and has an overseas business as well in 149 locations spread across 46 countries.
● In the financial year 2020, TCS got 1350 patents approved under its name.
● TCS generated over half of its revenue from its client base in America.
● The company is also a well-known recruiter across the IT sector.
● HDFC Banks stand third in the list of top 10 companies in India and is the largest private sector bank in India.
● HDFC Bank is known as the king of the Indian financial market, thanks to its unique ways of dealing with crises.
● The bank has gross non-performing assets (NPAs) of just only around 1.4 percent, which is why it is considered to have strong future growth potential.
● The bank has over 5000 branches spread across more than 2700 cities in India.
● HDFC Bank also has a wide range of operations in the financial market such as sectors like insurance, finance, wealth management, and lending.
● Infosys is the second largest tech giant in India after TCS and offers a wide range of IT services. It was founded in 1981 by NR. Narayana Murthy, and has grown substantially since then.
● The company offers a number of services like consultancy, outsourcing, and managed services as well.
● Infosys gives more dividend than its industry’s top peer TCS.
● In August 2021, the company breached the $100 billion-mark market capitalization and became the fourth company to join this club.
● Recently, its stock price surged and touch 52 weeks high.
● HUL is the fifth largest company in India in terms of market capitalization and was founded in 1933 by an Anglo-Dutch company named Unilever.
● The company has a very strong presence in the Indian consumer goods market.
● HUL deals in a wide range of consumer products such as foods and beverages, household and kitchen appliances, etc.
● The company has registered a sterling revenue of Rs 40,415 cr in the year 2020.
● HUL has a workforce of over 18,000 employees.
● HDFC was founded way back in 1977 by Hasmukhbhai Parekh.
● HDFC is a leading player in the Indian finance market and the biggest lender of housing finance in the country.
● The company has a substantial presence in fields like banking, insurance, asset management, loans, etc.
● HDFC has also overseas business in some of the richest nations of the world like the United Kingdom (UK) and Singapore.
● The company’s stock has performed better than its competitors over the years.
ICICI Bank is the second largest private sector bank after HDFC Bank in terms of market capitalization.
The bank provides banking services to both retail and institutional clients.
ICICI Bank has more than 5200 branches and over 15,500 ATMs nationwide.
Apart from India, it has presence in 16 other countries as well.
The company also deals in the non-life insurance sector, venture capital, etc.
● SBI is the largest public sector bank in India and 43rd largest bank in the world.
● It has over 23 percent market share in terms of assets under management, and 25 percent in loan and deposits market.
● The bank has a whopping over 22,000 branches and more than 58,000 ATMs across the country.
● SBI is the fourth largest company in the list of Indian fortune 500.
● SBI has been the government’s banker choice in the financial year 2020.
● Bajaj Finance is the largest NBFC in India.
● It has a diversified lending portfolio in the consumer finance market.
● The company has also a strong presence in rural areas as well.
● The NBFC has one of the lowest NPAs as compared to its peers.
● Bajan Finance also provides lending services to commercial customers.
● Kotak Mahindra Bank is the third-largest private sector bank in India in terms of market capitalization and the 10th member in our list of top 10 companies in India.
● The bank was founded in 1985 by Uday Kotak.
● It also offers financial services in the areas of general and life insurance, personal finance, wealth management, etc.
● It has a client base of more than 23 million users.
● The bank added around 70 percent of its total client base in FY2020 alone through digital means.
In the stock market, the top 10 companies are generally decided by their market capitalization, and this is the reason why we learned about the top 10 companies by market cap.
So before you make your stock investment portfolio, make sure you have sufficient knowledge about these companies in order to get handy returns.
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