The 5 Best Stocks to Buy Right Now in India
The equities and derivatives market in India is subject to several fluctuations. However, it is due to these fluctuations that several investors enter the market, looking to book profits and multiply their initial investment.
Unfortunately, the rewards of swing trading often overshadow the benefits of long-term investment. The stock market has a way of rewarding long-term investors, as evident by the case of Rakesh Jhunjhunwala, who capitalised on the budding popularity of Titan and held it since 2002.
Although holding stocks for extended periods can be a method to safeguard against the volatility of the market, it comes with its share of requirements. For one, you might require extensive research in variables like market sentiments, fundamentals and charts discussing the latest price trends.
If the process seems too complex, don’t worry! We have compiled a list of the five best stocks to buy today that might be worthy long-term investments to enhance your portfolio.
1. Reliance Industries (RIL)
When you mention profitable ventures, leaving Reliance Industries off the list is impossible. Hovering at a price of around ₹2500, experts reason that the company has robust verticals and chances of achieving steady long-term growth.
Reasons to Invest
Profitability of Jio and a shift to 5G, with an increase in revenue and the number of subscribers.
Strong revenue results across retail stores, with an increase of 4.12% in net profits, bringing the total to ₹2,400 crores.
In 2022, the shares of RIL grew at a rate of 5%, outperforming the rise of Sensex for the same period, which was at 2.23%.
2. HDFC Bank (HDFCBANK)
India’s largest and most profitable private bank also offers lucrative opportunities for investors. HDFC bank is ranked tenth worldwide in market capitalisation, trading at close to ₹1,600 in the stock market.
Reasons to Invest
Over the last 20 years, HDFC bank has persisted with an average compounded interest of 28% annually, significantly higher than the Sensex.
HDFC Bank showcases a high ROI of 1.8% and a net profit growth of over 20% over the next five years.
Gradual enhancement in an operational capacity with an increasing shift to digitalisation.
3. Hindustan Unilever (HINDUNILVR)
Hindustan Unilever is one of India’s oldest and most diverse brands, with over 50 FMCG products in the market. Additionally, the company offers other products, such as personal care items, beverages and water purifiers. The stock of Hindustan Unilever is selling at a price close to ₹2,600.
Reasons to Invest
Established presence in high-penetrated and profitable categories in India, namely FMCGs.
Sub-brands under the company garner high profits. Sixteen companies have posted gains of over ₹1,000 crores, and two companies have claimed profits of ₹5,000 crores.
Strong market capitalization with a thorough distribution system and an impactful supply chain.
4. Tata Consultancy Services (TCS)
With over an estimated 6,00,000 employees worldwide, TCS is a global leader in IT services. The company caters to over 150 locations across 46 countries. It offers the perfect amalgamation of technology and consultation to its clients, making it one of the most profitable ventures in the country. The TCS stock is trading at a value close to ₹3,300 in the market at present.
Reasons to Invest
The compound annual growth rate of TCS has touched 25.34% over the last four years, making it a consistent compounder.
TCS has bagged several large and mission-critical government projects over the years.
5. Tata Motors Limited (TATAMOTORS)
Tata Motors is one of the biggest automotive manufacturers and distributors in India. They also acquired Land Rover and Jaguar a few years back, turning them into profitable ventures in the upcoming years. In addition to cars, Tata Motors also offers trucks, vans, buses and coaches.
The present value of the stock is around ₹450.
Reasons to Invest
Tata Motors offers some of India’s most popular electric vehicles, namely the Tata Nexon and Tata Altroz. It is also planning to introduce an electrical version of Tata Tiago as an economical alternative.
The company is projected to have zero debt by the end of 2024.
The stock of Tata Motors has provided returns of 173.01% over the past three years, rivalling the nifty 100.
How do you Choose Stocks?
It can be challenging to purchase a stock and hold it long-term unless you understand the company fundamentals. Here are some factors that can help you better choose the right stocks for investing.
Ascertain Market Sentiments
The prices of stocks fluctuate in response to mass buying or selling. If there is an increased apprehension among buyers that the value of the stock will fall due to certain internal or external events, you might notice a bearish trend where the number of sellers outnumbers the buyers.
Hence, it is essential to assess the sentiments of the majority in the market to understand the best stocks for long-term investment.
Research Different Sectors
Given that India is a developing country, several sectors are more profitable than others at a given time. It is vital to recognise these domains and check for the fundamentals of the top players in the market. Perform a complete analysis of emerging sectors and check for the past returns for the relevant stocks for a better chance of booking profits.
Assess the Price Trends
The price chart of each stock is publicly available on various websites and popular stock brokerage platforms like Choice India. Browsing through this chart will provide you with historical patterns and the stock performance, helping you understand if it is undervalued or overvalued at the moment.
Based on the results, you can buy specific shares and hope they appreciate them in the long term.
Evaluate the Fundamentals of the Company
The primary aim of fundamental analysis is to help you gauge the long-term trends in the market. It presents you with an overall picture of a certain company and assists you in predicting the future prices of a particular stock.
While fundamental analysis is not 100% accurate, it helps weed out companies with strong growth potential. You can buy them while they are still undervalued to acquire profits.
Final Thoughts
Investments in the stock market are known to present better returns than traditional avenues like fixed deposits. However, they come with their share of risks. Identifying and defining your risk appetite is important before you venture into the stock market.
The periodic fluctuations might compel you to sell the stock to not lose your initial investment. But it is integral to remain patient and trust the fundamentals of the stock. If you plan to make a long-term investment, buy your preferred quantities of stock and stop returning to it daily.
The investment is like a sapling. Wait for it to grow and provide you with dividends. So, perform your research and use our expertise to understand the best stocks to buy today!
Choose a reputed stock broker like Choice India to create a Demat account and start buying stocks immediately! As they say - the best time to invest was yesterday, and the next best time is today.
This article is written for the educational purpose. Please do your research before investing in any above mentioned stocks or consult to your financial planner.