What are Blue Chip Stocks?

The phrase ‘blue chip’ is derived from poker, where the main expensive chips are blue.
As the forename implies, costly and dependable companies have blue-chip stocks as a division of their public offerings.
The phrase was named by Oliver Gingold and was initially used to specify high-value stock.

 Blue Chip Stock

A company is said to be a blue-chip company when it has established its business over a long period of time and has faced all the issues in the market but has still survived and become the leader among consistent and responsible products.
It should reflect a safe investment to the investor where it should be the most trustworthy market indices.
On the other hand, this doesn’t mean that the company is not subjected to significant risks.
Its categorization is based on the varying circumstances of the market.

What Are The Features Of A ‘Blue-Chip Stock’?

A blue-chip stock will always have the prospective to produce high revenues.
It assures a reliable performance, revenue, and income from such stocks are guaranteed even in the dry phase of economic changes.
Companies with blue-chip stocks have high bond credit ratings and the unsecured debt markets for share trading.
They are counted among various reliable products.

What Does A Blue Chip Stock Not Represent?

It is necessary to understand that even though blue-chip companies sell high-quality-value products and services which are likely to make sure steadiness and development, they are all blue-chip companies that sell high-quality-value products and services and are known to ensure returns in the worst economic climate with reliable growth and stability, they are all vulnerable to the mistakes in trading including online trading.
Constancy in the precedent does not mean a stable future, and it pertains to the blue-chip stocks as well.
As consumer and economic trends chiefly pressurize the steady operations of a company, they may come across complexity due to bad choices and poor administration.
When calculating profit, the status of a company and its extensive international credit do not count for anything if they fail to deliver.
Therefore, a clever investor must be conscious of market oscillations and must make sensible decisions to profit the most from his investment.

What Are The Best Blue Chip Companies In India?

Some of the best blue-chip companies in India are:

Wipro, Tata Steel, Tata Motors, Tata Consultancy Services (TCS), State Bank of India (SBI), Oil and Natural Gas Corporation (ONGC), Reliance Communications, Reliance Industries, Mahindra & Mahindra, Bharti Airtel, BPCL, HPCL, ICICI Bank and much more.
Blue Chip Stock investment is an excellent option for those looking for a long-term investment with a regular dividend output.
The right decisions are relevant to the profit or dividends earned regularly to benefit a safe and risk-free output.