List Of The Best Liquid Stocks In India For Investment In 2024

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By MOFSL

2024-04-30T12:46:32.000Z

6 mins read

List Of The Best Liquid Stocks In India For Investment In 2024

motilal-oswal:tags/stock-market

2024-12-27T06:23:05.000Z

Liquid Stocks

Introduction

If you desire healthy returns, you must build a portfolio comprising stocks with favourable liquidity. Liquidity refers to a company’s capability to fulfil short-term debt obligations. This means companies having attractive liquidity positions have strong financial health.

But, before investing in a highly liquid stock, you must be cautious as a high liquidity level may also indicate the company’s failure to utilise assets efficiently.

What are liquid stocks?

In stocks, liquidity refers to the ease with which a stock can be bought or sold in the market without affecting its price. Many factors impact a stock’s liquidity, such as the company’s size, level of investor interest in the stock, and number of outstanding shares.

Open Trading Account and Start Trading!

A large number of investors trade in liquid stocks actively. One of the most prominent characteristics of liquid shares is their high trading volume. Moreover, due to their high liquidity, you can trade them anytime and fulfil your emergency requirements.

Five best liquid stocks to invest in 2024

1. SBI

State Bank of India is a multinational public sector bank. It has a rich legacy of over 200 years, helping it get recognised as India’s most trusted bank through generations. The bank operates in several business industries through subsidiaries like SBI Life Insurance, SBI General Insurance, SBI Card, SBI Mutual Fund, etc.

As of April 5, 2024, the bank’s market capitalisation was worth Rs. 6,82,509 crore. The volume of shares traded was 99,39,620. The share’s trading price was Rs. 764.75.

2. Axis Bank Ltd.

Axis Bank Ltd., erstwhile UTI Bank, is a multinational banking and financial services company. It was founded in December 1993, with a registered office in Ahmedabad and a corporate office in Mumbai. It sells financial services to SMEs and retail businesses, large and mid-size companies. The bank also has an international presence with offices in Hong Kong, Singapore, Dubai, Colombo, and Shanghai.

The bank’s market capitalisation was Rs. 3,26,898 crore as of April 5, 2024. The volume of shares traded was 92,10,187. The trading share price was Rs. 1,059.10.

3. ONGC

The Oil and Natural Gas Corporation Limited (ONGC) was incorporated in 1956 by the Government of India. It is owned by the Ministry of Petroleum and Natural Gas and has its headquarters in Dehradun. The company’s operations include exploration, development, and production of natural gas, crude oil, LPG, and other value-added petroleum products.

The market capitalisation of ONGC was Rs. 3,37,088 crore as of April 5, 2024. Its trading share price was Rs. 267.95. The volume traded was 1,30,29,904 shares.

4. IOC

Indian Oil Corporation (IOCL) belongs to the refineries sector. It is the country’s flagship national oil company and petroleum major. It operates India’s widest and largest network of petrol and diesel stations. The company is owned by the Ministry of Petroleum and Natural Gas and was incorporated in 1959. Its headquarters are in New Delhi.

The company’s market capitalisation on April 5, 2024, was Rs. 2,37,236 crore. Its trading price was Rs. 168. The volume of shares traded was 2,65,51,221.

5. Hindalco Industries

Hindalco Industries is a leader in the aluminium and copper industry. It is Aditya Birla Group’s metals flagship company. It was started in 1958. In 2007, it acquired Novelis Inc., the world’s largest aluminium rolling company. In 2020, it acquired Aleris Corporation through Novelis Inc. Hindalco’s headquarters are in Mumbai.

As of April 5, 2024, the company’s market capitalisation was Rs. 1,28,102 crore. Its share trading price was Rs. 570.05, and the volume of shares traded was 48,84,617.

Conclusion

You must evaluate a stock on specific parameters before investing in it. These parameters include return potential, risk, growth rate, and liquidity. You must understand a stock’s liquidity, especially if you have a shorter investment horizon. Blue-chip companies with strong financials and large market capitalisation are regarded as liquid stocks. Investors find them convenient because they can be easily bought and sold in the market, carry a low transaction cost, and offer high price stability.

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