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Suggest a new Definition
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Equity
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Block Deal
Block deal is a single transaction, of a minimum quantity of five lakh shares or a minimum value of Rs 5 crore, between two parties.
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Bollinger Bands
Bollinger Bands is one of the popular technical analysis tools, where three different lines are drawn, with one below and one above the security price line.
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Definition: Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance. These stocks are known to have capabilities to endure tough market conditions and give high returns in good market conditions. Blue chip stocks generally cost high, as they have good reputation and are often market leaders in their respective industries.
Description: Oliver Gingold, who worked at Dow Jones, coined the phrase ‘Blue Chip’ in 1923. This term came into vogue after Gingold, while standing near the stock ticker at a brokerage firm, noticed that several stocks traded at $200 or more per share. He called them ‘Blue Chip Stocks’ and wrote an article on them. That’s how the phrase was born. Since then the term has been used to refer to highly-priced stocks, but now it is used more commonly to refer to high-quality stocks. These are stocks that generally deliver superior returns in the long run. Some people also relate blue chip stocks to blue betting disks in the game of poker, where the blue disk has the highest value while the white one has the lowest. Several parameters can be considered to identify blue chip companies. They include consistent annual revenue over a long period, stable debt-to-equity ratio, average return on equity (RoE) and interest coverage ratio besides market capitalisation and price-to-earnings ratio (PE). As per market capitalisation, India’s leading blue chip companies today are State Bank of India (SBI), Bharti Airtel, Tata Consultancy Services (TCS), Coal India, Reliance Industries, HDFC Bank, ONGC, ITC, Sun Pharma, GAIL (India), Infosys, and ICICI Bank.
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- STOCKSTOCK MARKETDEBT-TO-EQUITY RATIOBLUE CHIP STOCKS
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Block Deal
Block deal is a single transaction, of a minimum quantity of five lakh shares or a minimum value of Rs 5 crore, between two parties.
Read More
- NEXT DEFINITION
Bollinger Bands
Bollinger Bands is one of the popular technical analysis tools, where three different lines are drawn, with one below and one above the security price line.
Read More
Related Definitions
- 52 Week High Low: Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. A figure recorded as the highest/lowest price of the security, bond or stock over the period of past 52 weeks is generally referred to as its 52-week high/ low.Description: It is an important parameter for investors (as they compare the current trAlgorithmt is Algorithm?The term "algorithm" refers to a collection of guidelines to be followed in computations or other problem-solving procedures. This sums up the algorithm definition. It is also a process for handling a mathematical equation in several iterations, sometimes using recursive operations. It is often easy or complex, depending upon the nature of the problem. What are the characteristics oAlgorithm Trading: Algorithm trading is a system of trading which facilitates transaction decision making in the financial markets using advanced mathematical tools.Description: In this type of a system, the need for a human trader's intervention is minimized and thus the decision making is very quick. This enables the system to take advantage of any profit making opportunities arising in the market much beforAlpha: Alpha is an estimated numeric value of a stock's expected excess return that cannot be attributed to the market's volatility, but may be due to some other security.Description: In other words, it is the difference between the investment return and the bench mark return (for e.g. NSE Nifty). It is one out of the five technical risk ratios which help the investor to determine the risk reward p
- American Option: American options are derivatives contract with the option of redeeming the contract during the life of the option.Description: The unique feature of redeeming the contract before maturity or on the date of maturity gives it an added advantage of tradability. Due to this particular feature, it is the most widely traded option on trade exchanges. It is highly liquid in nature.It is to be nArbitrageArbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference (usually small in percentage terms). While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade. The pay-off should be Assetare things you own that you can sell for money. In accounting, an asset is any resource that a business owns or controls. It's anything that could be sold for money. The study of a balance sheet and assets and liabilities helps us to ascertain the equity value. This value can be used to value a company and understand if a company is overvalued or undervalued in the market. What is an asset?An asseAsset AllocationAsset allocation is an investment strategy by which an investor or a portfolio manager attempts to balance risk versus reward by adjusting the percentage of amount invested in an asset of a portfolio according to the risk tolerance of the investor, his/her goals and the investment time frame.Description: Financial assets vary in returns from each other depending on market conditions and user r
- Auction MarketAn auction market is the market where interested buyers and sellers enter ambitious bids and offers, respectively, at the same time. The price at which the security trade reflects the highest price the buyer is interested to pay and the lowest price at which the seller is interested to sell.The trade is executed at the price where the bid and the offer price match. It is different from an overBasis RiskBasis Risk is a type of systematic risk that arises where perfect hedging is not possible. When there is a variation between hedge/futures/relative price and cash/spot price of the hedged underlying at any given point of time, that variation is called ‘Basis’ and risk associated with it is called Basis Risk.Basis is simply the relationship between the cash price and future price of an underlyi
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Data centre and transformers are long-term themes; liquor a structural play: Madhu KelaMadhu Kela sees potential in transformers, data centres with Google tie-ups, and privacy laws. Indian liquor stocks could grow with premiumisation, citing Rs 200 vs Rs 10,000 bottles and Moutai’s profits. UP's excise collection rose due to Yogi government reforms. Stocks hit life highs. He remains positive on real estate and the affluent India cycle after a downturn.- Nifty may see a 400-point correction before June 4 but banks will outperform: Sanjiv BhasinSanjiv Bhasin from IIFL Securities provides insights on market trends, highlighting the performance of key banks like HDFC, Kotak, ICICI, and Axis. He recommends focusing on IDFC First, Dhanlaxmi Bank, SBI Life, Grasim, LIC, GIC, and New India Assurance for potential growth. Bhasin also says that in pharma, Divi's is one of the best contract pharming companies and it is regaining its position but he would put his money on Lupin.
- Range-bound trade likely till election results are out; buy 3 must-have stocks on dips: Sanjiv BhasinSanjiv Bhasin shares insights on market trends, cautioning against exuberance and highlighting investment opportunities in HAL, BEL, Bharat Dynamics, Jindal Saw, Honeywell Automation, Naukri, and Info Edge. Bhasin also says that due to high valuations, HAL, BEL and Bharat Dynamics are the three must-have stocks that should be bought on dips.
- How the entry or exit from Nifty impacted individual stocksInclusion of a stock in a diversified market benchmark like Nifty 50 is often considered to be a positive. Similarly, exclusion from the index is often interpreted as a signal to get out as returns are perceived to be sub-optimal. But, does this theory play out in the real world?
- Top Nifty50 stocks analysts suggest buying this weekStock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.
- Tata’s Trent doubles its net profit in Q3Trent's profit increased from Rs 160.9 crore to Rs 343.6 crore over the year and the revenue to Rs 3312.4 crore (Rs 2171.5 crore). Trent’s earnings before interest, tax, depreciation, and amortization (EBITDA) during the quarter jumped 86% year-on-year to Rs 623.15 crore.
- India emerged as a leader in IPOs in 2023: Report2023 was a year of divergence for investors in Asian markets, as Japan's benchmark index touched a 33-year high, Hong Kong rounded out its fourth straight year of decline and India emerged as a leader in IPOs, Nikkei reported.
- Helped by continuation of policy push: 5 largecap stocks from different sectors with upside potential of up to 34%There are many sectors which have been able to do well because of policy push by the government. Many may not realize that “Tipper” which is a kind of light commercial vehicle ( LCV) did extremely well due to the fact that it is used in road construction and in the last eight years, that has done extremely well. Similarly a tile company did well because there was a housing boom and auto ancillary which was focussed on EV did well due to push to EV. Now with increased probability of continuation of policy push, some of these sectors and companies are likely to see continued tailwinds. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
- For volatile markets: 4 largecap stocks from different sectors with upside potential of up to 28%After out performing emerging markets, Indian markets have become an inline performer with other emerging markets for the last three weeks. This is due to sharper correction which both nifty and sensex have witnessed. Now because this correction is coming at a time when the global situation is not so good, both in terms of interest rate and also higher geopolitical risks, it would be better that “caution” should be added when decisions are taken about investing. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
- Invest for long term: Here are 10 advantages of pumping funds into blue chip stocksBlue chip stocks are established, financially sound companies with strong governance, skilled management teams, and a proven track record. They offer stability, reliability and are included in major market indices. These stocks are known for their leadership position in their respective sectors and have strong bargaining power with the customer. They have a robust financial strength, can weather market fluctuations, and have a consistent track record of paying substantial and regular dividends. While being safe and low-risk investments, blue-chip companies command high valuations, generally above the broad-market, thus making them an ideal choice for long-term investors.
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