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Top 5 Large Cap stocks for 2023

01 Dec 2023

Stocks of companies are generally categorized according to their market capitalization into small cap, mid cap, and large cap stocks. Among these three categories of stocks, the ones classified as large-cap are often recommended by industry and investment experts.

In this article, we’re going to briefly take a look at what large cap stocks are, some of the advantages that you get to enjoy by investing in them, and 5 of the best large-cap stocks that you can invest in 2023.

What are Large Cap Stocks?

The top 100 companies in terms of market capitalization listed in the Indian stock market are known as large cap stocks. These stocks usually have a market capitalization of above Rs. 20,000 crores. One of the factors that set large cap companies apart from others is that they’re well established, possess a strong market share, and are financially very stable.   

What are the Advantages of Investing in Large Cap Stocks?

You get to enjoy a plethora of different benefits by investing in large cap stocks. Here’s a quick look at a few of them. 

Stability

Large cap companies are typically well-established and have a long track record of financial performance, which can provide a level of stability for investors.

Diversification

Because large cap companies operate in a variety of industries, investing in a diversified portfolio of large cap stocks can help spread risk and potentially increase returns.

Liquidity

Large cap stocks are typically highly traded, which means that they can be easily bought and sold in the market. This can make them a good choice for investors who may need to liquidate their holdings quickly.

Higher Dividends

Many large cap companies have a history of paying dividends to shareholders, which can provide a steady stream of income for investors.

Best Large Cap Stocks to Invest in 2023

If you’re considering investing in large cap stocks, here’s an overview of some of the best ones that you can invest in in the year 2023. 

1. HDFC Bank  

Founded in 1994 and headquartered in Mumbai, HDFC Bank is the largest private sector bank in India. It offers a wide range of banking services, including personal banking, business banking, and corporate banking. In addition to possessing a strong digital, online, and mobile banking presence, the bank also has a large network of branches and ATMs across the country. 

One of the major positives of HDFC Bank is that the company has been consistently ranked among the top banks in India in terms of asset quality, capital adequacy, and profitability. In addition, the bank is also known for its strong corporate governance practices and has been recognized as one of the best-performing companies in the country.

As of January 19, 2023, the share price of HDFC Bank was Rs. 1,640. Over the past six months, the company has been experiencing a slow, yet consistent rise in its share price, making it one of the best large cap stocks to invest in. 

2. Hindustan Unilever 

Established way back in 1933 as a subsidiary of Unilever, one of the world’s largest consumer goods companies, Hindustan Unilever Limited (HUL) is currently the leading manufacturer of Fast Moving Consumer Goods (FMCG) in India. 

The company offers a wide range of products across various categories that include personal care, home care, and food and beverages, among others. Some of the well-known brands under HUL are Dove, Lipton, Surf Excel, Pepsodent, and Lifebuoy. 

A strong point of the company is that it has a very strong distribution network across the country, with its products available even in the most remote locations in India. Apart from its strong business ethics, Hindustan Unilever is also known for its commitment to sustainable practices and has been recognized as one of the most socially responsible companies in India.

The share price of Hindustan Unilever was Rs. 2,643 as of January 19, 2023. One of the few companies that consistently issue dividends to its shareholders, HUL is another one of the best large cap stocks to invest in. 

3. Reliance Industries 

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company that was founded by Dhirubhai Ambani in 1966. Reliance Industries is involved in various businesses, such as the exploration and production of oil and gas, refining, petrochemicals, retail, and telecommunications. 

With over $150 billion in market capitalization, RIL is currently the largest private-sector company and one of the largest publicly traded companies in India. Most of the revenue of Reliance Industries comes from its petrochemical and refining business. Reliance Retail, a subsidiary of RIL, is the largest player in the Indian retail market, whereas Reliance Jio, the telecom arm of the company, is one of the fastest-growing companies in the world and has completely transformed the telecom industry in India.

As of January 19, 2023, Reliance Industries’ share price stood at Rs. 2,469. The company has been creating wealth for its shareholders ever since its inception. The conglomerate is easily one of the best large cap stocks that you can consider investing in 2023. 

4. Infosys 

Infosys Limited is a multinational corporation that provides business consulting, technology, engineering, and outsourcing services. The company was founded in 1981 and is headquartered in Bengaluru, India. 

Currently, Infosys is one of the largest IT services companies in India and has a global presence with offices in over 50 countries. The entity is known for its strong focus on innovation and has been recognized for its best practices in corporate governance. 

One of the major positives of Infosys is that it has a very diverse client base that includes leading companies in various industries such as banking, insurance, manufacturing, and healthcare. In addition, the company’s strong reputation for delivering high-quality services has led to it being consistently ranked among the top-performing companies in the Indian IT services sector.

Infosys Limited’s share price as of January 19, 2023, was Rs. 1,534. The company has displayed strong Q3 2022-2023 financial results, with profits rising by about 13% year-over-year. This makes the company one of the best large cap stocks to invest in right now. 

5. ITC Limited 

Headquartered in Kolkata, West Bengal, ITC Limited is an Indian conglomerate. The company operates in a variety of sectors which includes fast-moving consumer goods (FMCG), hotels, paperboards and packaging, agribusiness, and information technology. 

The company's FMCG portfolio includes brands such as Aashirvaad, Sunfeast, Bingo!, and Yippee! noodles. The company is also the owner of several luxury hotels, including ITC Grand Chola in Chennai and ITC Maurya in New Delhi. In the paperboards and packaging segment, the company operates under the brand name "ITC Packaging and Printing" and offers a wide range of products.

The share price of ITC Limited stood at Rs. 332 as of January 19, 2023. In the past 6 months, the company’s shares have gone up by 11.33%, and are all set to make further gains in the future, making it one of the best large cap stocks to invest in in 2023. 

Conclusion

So, there you have it. These are the top 5 large cap stocks that you can consider investing in this new year. Now, before you proceed, make sure to open a Demat account and a trading account since it is mandatory to invest in the stock market. You can visit Motilal Oswal to open one for free through a paperless process. Once you have your Demat account, you can then proceed to invest in the best large cap stocks or even upcoming IPOs. 

 

Popular Stocks:  HDFC Bank share price | ICICI Bank Share Price | UPL Share Price | Tata Consumer Share Price | Divislab Share Price

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