Blue-chip stocks

Blue-chip stocks are shares of large, financially sound, and well-established companies with a long track record of stable earnings, consistent dividend payments, and strong brand recognition. The term originates from poker, where blue chips carry the highest value. In India, blue-chip stocks are typically the constituents of the Nifty 50 index—companies like Reliance Industries, HDFC Bank, Infosys, TCS, and ITC. These stocks are characterised by high liquidity, extensive analyst coverage, and relative resilience during market downturns. They form the core of most institutional and long-term retail equity portfolios in India.