India’s Tigers: Best Indian Stocks on the Market10-min read

Sayan Chakraborty

Sayan Chakraborty |  Updated on 20/9/2023

Introduction to the Best Indian Stocks on the Market in May 2024

The Indian stock market is a treasure trove of investment opportunities, but with so many options available, retail investors often struggle to identify the best stocks for their portfolios. As such, we aim to assist Indian retail investors in their search for the best Indian stocks to invest in for the next decade. By providing valuable insights into categories such as blue-chip, growth, and multi-bagger stocks, we hope to guide investors toward stocks that can potentially deliver substantial returns over the long term.

Investing in stocks not only offers the possibility of attractive returns but also allows investors to diversify their portfolios and tap into the growth potential of top-performing companies in India’s rapidly expanding economy. Through a comprehensive list of stocks with an in-depth analysis of their performance, financials, industry trends, and other relevant factors, we aim to provide retail investors with a roadmap to the best Indian stocks for the next 10 years.

CoinBharat artwork of an Indian queen archetype

In This Guide:

  1. What Are the Best Stock Brokerages for India in May 2024
  2. How to Choose the Best Indian Stocks
  3. Top Indian Stocks for Retail Investors
  4. Top Indian Stocks by Market Capitalisation
  5. Dividend Stocks: Stable Returns for Long-Term Wealth Creation
  6. How to Buy Cheap Indian Stocks
  7. Tutorial: How to Invest in Indian Stocks Online
  8. Risks and Challenges of Investing in Indian Stocks
  9. Conclusion
  10. FAQs

 

Best Stock Brokerages for Indian Stocks in May 2024

Amongst the innumerable brokerages which exist within the Indian market, Admiral Markets and Libertex definitely shine the brightest as the best stock brokerages for Indian stocks.

 

Admiral Markets Review

Admiral Markets Review

star-empty star-empty star-empty star-empty star-empty
star-full star-full star-full star-full star-full

Pros

  • list bullet Over 40,000 active clients from 110+ countries, carrying out an average of 1.5 million trades per year.
  • list bullet Competitive spreads as low as 0.5 pips and up to 500:1 leverage for forex trading.
  • list bullet Provides access to over 8,000 trading instruments, including 40+ forex pairs, 200+ stocks, and 5+ cryptocurrencies.

Cons

  • list bullet Admiral Markets has relatively high minimum deposit requirements for some account types, such as those in GBP.
  • list bullet Some users have reported slow response times from customer support, during excessively busy periods.
Libertex Review

Libertex Review

star-empty star-empty star-empty star-empty star-empty
star-full star-full star-full star-full star-full

Pros

  • list bullet 0% fees on stock trades, minimum deposit of only $10 or equivalent
  • list bullet Over 322 tradable assets available
  • list bullet Unmatched user-friendly interface, easy for beginners to catch on

Cons

  • list bullet Unavailable in some countries, including the United States
  • list bullet Only features two types of accounts (Demo and Standard)

Admiral Markets

Admiral Markets is a popular online brokerage that provides access to a range of financial instruments, including Indian stocks, indices, forex, and commodities. The brokerage is regulated by several reputable financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC).

One of the standout features of Admiral Markets is its low fees, with commission fees as low as $0.01 per share on Indian stocks. The brokerage also provides access to a range of trading platforms, including MetaTrader 4 and 5, which are well-known and widely used among traders. The brokerage offers leverage of up to 1:500, which can increase potential profits, but also magnify losses.

Withdrawals from Admiral Markets are processed within 24 hours for e-wallets and up to 5 business days for bank transfers, and the minimum withdrawal amount is $10. The brokerage also offers a range of educational resources, including webinars, articles, and trading guides.

Libertex 

Libertex is a well-known online brokerage that provides access to Indian stocks, as well as a range of other financial instruments. The brokerage is regulated by the Cyprus Securities and Exchange Commission (CySEC) and is known for its user-friendly trading platform.

One of the key advantages of Libertex is its zero-commission policy, which makes it an attractive option for traders looking to minimise trading costs. The brokerage also provides access to various trading tools and features, including a demo account for practice trading and a mobile trading app for on-the-go trading.

Withdrawals from Libertex are processed within 24 hours, and the minimum withdrawal amount is $10. The brokerage also offers a range of educational resources, including webinars, trading guides, and a knowledge base.

How to Choose the Best Indian Stocks

CoinBharat artwork of an Indian woman adorning gold jewellery

The Factors That Investors Should Consider When Selecting Stocks

When investing in India, investors should consider a range of factors besides the company’s financial performance, including industry trends and market conditions.

Industry trends provide insight into how a sector is performing overall. For example, if the IT sector is booming, you can look at IT stocks that are likely to benefit from this growth. On the other hand, if the real estate industry is struggling due to oversupply, you might want to avoid any real estate stocks.

Market conditions can also influence investor decisions. In times of economic uncertainty or global crises, it is important to monitor market sentiment and watch for signs of volatility or downturns in specific sectors. Similarly, during periods of bullishness and high liquidity, identifying stocks with the potential for growth can help you get ahead of the competition and make more informed investments.

Considering both industry trends and market conditions when selecting stocks for their portfolios can help you sustain through the industry’s disparate dynamism. This enables identifying the best stocks that are poised to deliver attractive returns in the coming decade. By analyzing industry trends and market conditions, you can pinpoint the top-performing companies, the so-called “tigers,” and determine which stocks are likely to generate substantial profits in 2023 and beyond.

Incorporating these crucial factors critically can help you make informed choices and find the best Indian stocks for the next 10 years.

Analysing Financial Statements and Using Ratios to Evaluate Company Performance

You can use ratios, such as price-to-earnings (P/E) and earnings-per-share (EPS), to evaluate a company’s performance.

The P/E ratio measures how much investors are willing to pay for a company’s stock relative to its earnings, while EPS is the portion of the company’s profits that is paid out to shareholders in the form of dividends. By combining these two metrics, you can get a better understanding of how well a company is performing relative to its peers.

Another important factor to consider when evaluating potential investments is the company’s balance sheet. This statement tells investors how much money the company has, who owns it (or “owning interest”), and how much debt is on the books. It also provides insight into cash flow, which can be used as an indicator of future profitability.

By carefully analysing financial statements and evaluating key metrics such as P/E ratios and EPS, you can make informed decisions about which stocks are best suited for your portfolio.

Understand the Company’s Financials

It is essential to review the company’s financial statements, such as its income statement, balance sheet, and cash flow statement. Through these documents, you can gain insight into the company’s present financial health. For example, does the company have strong revenue growth? Are costs under control? Is cash flow sufficient? By examining these documents closely, you can get a clear picture of whether or not a company is worth investing in and find the best Indian stocks for the next 10 years.

Analyse Industry Trends

You should also look at industry trends:

What type of growth are competitors experiencing? How is their performance relative to the industry’s average? Additionally, understanding any potential risks associated with the industry can help assess whether or not a particular stock is worth investing in.

Consult with a Financial Advisor

Finally, consulting with a financial advisor is a great way to get sound advice on investing in Indian stocks. A financial advisor can provide you with valuable insights into market trends and advise you on which stocks might be the best fit for your portfolio, and help in finding out the best Indian stocks for the next 10 years.

Top Indian Stocks for Retail Investors

top Indian stocks for retail investors

Reliance Industries Limited (RIL)

Reliance Industries Limited is a conglomerate with interests in petrochemicals, refining, oil, and gas exploration. It is also the most prominent Indian company by market capitalization. RIL has consistently delivered strong financial performance, with a revenue of INR 659,205 crore in FY21 and a net profit of INR 53,739 crore. The company has also invested heavily in new ventures, such as the telecom industry with Jio, which has the potential for future growth and can be claimed as one of the best Indian stocks for the next 10 years. RIL has a diversified business model and is well-positioned to capitalise on emerging market trends.

HDFC Bank

HDFC Bank is one of the largest private sector banks in India, with a network of over 5,000 branches and 13,500 ATMs. The bank has consistently delivered strong financial performance, with a revenue of INR 131,868.4 crore in FY21 and a net profit of INR 31,116 crore in FY21. HDFC Bank has a solid business model, with a focus on retail banking, which has helped it maintain a strong balance sheet. The bank is also well-positioned to capitalise on the growth potential of the digital banking sector in India.

Infosys Limited

Infosys Limited is one of the leading software companies in India, providing services such as software development, maintenance, and engineering solutions. The company has a strong reputation for innovation and has consistently delivered strong financial performance, with a revenue of INR 104,000 crore in FY21 and a net profit of INR 19,351 crore. Infosys has a diversified business model with a focus on digital services, which has the potential for future growth.

TATA Consultancy Services (TCS)

TATA Consultancy Services is a global IT services and consulting company with a focus on digital and automation services. TCS has a solid business model and has consistently remained adaptive of their strategic partnerships and innovation, which has helped them maintain a strong financial position over the years. The company has consistently delivered strong financial performance, with a revenue of INR 164,352 crore in FY21 and a net profit of INR 33,872 crore. TCS is well-positioned to capitalise on the growth potential of the digital and automation sectors.

Bajaj Finserv

Bajaj Finserv is a diversified financial services company with interests in insurance, lending, and wealth management. The company has a solid business model, with a focus on the retail segment, which has helped it maintain a strong balance sheet. Bajaj Finserv has consistently delivered strong financial performance, with a revenue of INR 57,719 crore in FY21 and a net profit of INR 6,644 crore. The company is well-positioned to capitalise on the growth potential of the Indian financial services sector.

Top Indian Stocks by Market Capitalisation

Investing in the Indian stock market presents an opportunity to tap into one of the world’s fastest-growing economies. With a blend of traditional industries and a rapidly expanding technology and service sector, Indian stocks offer diverse opportunities for investors. Some of the top companies by market capitalisation in India include Reliance Industries Ltd., Tata Consultancy Services Ltd., HDFC Bank Ltd., Infosys Ltd., and Hindustan Unilever Ltd. These companies not only have a dominant presence in their respective sectors but also have unique selling points that make them attractive for potential investors. Each one is a leader in its sector, known for its operational efficiency, strong financials, and strategic market positioning.

  1. Reliance Industries Ltd. (RIL): RIL is a conglomerate with diverse businesses including energy, petrochemicals, textiles, natural resources, retail, and telecommunications. The company’s unique selling point is its significant footprint in multiple sectors, which provides a diversified income stream. Reliance Jio, its telecom subsidiary, has revolutionised the Indian telecom space with cheap data, and its retail arm, Reliance Retail, is the largest retailer in India.
  2. Tata Consultancy Services Ltd. (TCS): TCS is an IT services, consulting, and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys. Its unique selling point lies in its robust business model, wide array of services, and a strong customer base across different industries and geographies. TCS has a strong reputation for its quality of service and technical expertise.
  3. HDFC Bank Ltd.: HDFC Bank is a leading private sector bank in India. It offers a wide range of financial products and services to its customers, including retail banking, wholesale banking, treasury operations, and other banking services. Its USP is its strong retail banking business, solid asset quality, and robust technology infrastructure, which provides an excellent customer experience.
  4. Infosys Ltd.: Infosys is a global leader in next-generation digital services and consulting. Its USP lies in its strong client relationships, vast service offerings, and its focus on digital transformation solutions. The company’s ability to help clients navigate their digital transformation has been key in maintaining its position in the market.
  5. Hindustan Unilever Ltd. (HUL): HUL is India’s largest fast-moving consumer goods company, with leadership in home & personal care products and food & beverages. Its unique selling point is its broad portfolio of brands, extensive distribution network, and its strong understanding of the Indian consumer. HUL’s wide array of products caters to various segments of the market, which allows it to weather economic fluctuations well.

Remember, investing in stocks always comes with risks, and it’s important to do thorough research and consider seeking advice from a financial advisor before making any investment decisions.

Dividend Stocks: Stable Returns for Long-Term Wealth Creation

CoinBharat artwork of a retiree reaping the benefits of his investments at their highest returns

Passive income, skyrocketing in time

Dividend stocks represent shares in companies that consistently distribute a portion of their earnings to shareholders, offering investors an opportunity for stable returns and steady income streams. These stocks are an essential component of a well-rounded investment portfolio, as they provide a balance between growth and income.

Investing in high-yield dividend stocks can be ideal for those seeking long-term wealth creation. Dividends can provide a cushion against market volatility and generate passive income, allowing investors to reinvest or spend the returns as they see fit. When selecting dividend stocks, it is crucial to consider factors such as dividend yield, payout ratio, and the company’s track record of dividend payments, financial stability, and growth potential. By carefully choosing dividend stocks, investors can diversify their portfolios and enhance their financial security in the long run.

By investing a diverse portfolio of stable dividend stocks, one could even generate sufficient passive income for retirement. Before proceeding to invest in the best dividend stocks in India that, it is of utmost importance to select a reputable broker that operates in both India and abroad. Both Admiral Markets and Libertex offer a wide array of Indian dividend stocks to invest in.

How to Buy Cheap Indian Stocks

Penny stocks are often seen as an attractive option for investors due to their low cost and potential for high returns. However, it is important to remember that these stocks are often associated with higher risk, as they may be less stable and more volatile than other types of stocks. Investors should carefully weigh the potential risks and rewards before investing in penny stocks.

For those interested in investing in penny stocks, it’s important to conduct thorough research and analysis before making any investment decisions. This can include analysing the financials of the company, considering industry trends and competition, and evaluating overall market conditions. Additionally, it’s often recommended that investors consult with a financial advisor or investment professional before investing in penny stocks, in order to gain a better understanding of the risks and potential rewards involved.

There are only a handful of brokers that accept Indian traders looking for the best cheap stocks to buy, but thankfully they have been reviewed with unanimous praise by new customers looking to turn a profit from penny stocks.

Tutorial: How to Invest in Indian Stocks Online

CoinBharat artwork of a young man analysing the stock marketOpening an online trading account with a brokerage firm in India is a simple process that can be completed in a few steps. Here’s a step-by-step guide on how to open an online trading account with Admiral Markets and how to place orders for buying and selling stocks.

Step 1: Visit the Admiral Markets website

The first step is to visit the Admiral Markets website by clicking on the “Open an account” button on this page. This will take you to the account opening page, where you’ll need to fill in your personal and contact information. Merely tap the “Start Trading” button on the page to get started. A special 100% bonus is available after your first deposit when signing up from the links above, effectively doubling your investment funds. 

Step 2: Fill in your personal information

Fill in your personal information, including your name, date of birth, and contact details. You will also be asked to provide some identification documents, such as your Aadhaar card or PAN card.

filling out your details on Admiral Markets sign-up

Step 3: Choose the type of account you want to open

Admiral Markets offers different types of accounts, including a demo account for beginners and a live account for experienced traders. Choose the account that suits your needs and click the “Open Account” button.

setting up the type of account that is most suitable for you on Admiral Markets to invest in the best Indian stocks

Step 4: Verify your identity

To comply with the regulatory requirements, Admiral Markets will ask you to verify your identity by submitting your identification documents. Once your account is verified, you’ll receive an email confirmation from Admiral Markets.

verifying your identity on Admiral Markets to invest in the best Indian stocks

Step 5: Fund your trading account

Once your account is verified, you’ll need to fund your trading account by depositing money through various payment methods offered by Admiral Markets, including bank transfers, credit/debit cards, and e-wallets.

funding your Admiral Markets account to invest in the best Indian stocks

Step 6: Place orders for buying and selling stocks

After funding your trading account, you can now start buying and selling stocks by placing orders on the Admiral Markets trading platform. Admiral Markets offers various order types, including market orders, limit orders, and stop-loss orders.

Risks and Challenges of Investing in Indian Stocks

By now, we hope you have your doubts cleared about how to invest in Indian stocks. But still, considering the risks and challenges that come with this dynamic market is an integral aspect if you want to invest, and gain responsibly.

Market Volatility

One of the primary risk factors to consider in such cases is market volatility, which can result in rapid fluctuations in stock prices due to economic, political, or social events. As a result, you must be patient and prepared for short-term ups and downs in the market.

Currency Fluctuations

Another significant risk is the potential impact of currency fluctuations on returns. The value of the Indian rupee can be unpredictable, which can affect the earnings of foreign investors. To mitigate this risk, investors should consider hedging strategies.

Geopolitical risks

Geopolitical risks are also a factor to consider when investing in Indian stocks. India’s complex geopolitical dynamics, such as political instability, trade tensions, or geopolitical conflicts, can impact the economy and the stock market. As a result, investors should stay informed and vigilant about the potential impact of these factors on their investments.

Regulatory risks

Changes in regulations can significantly affect the performance of stocks. It is essential for investors to remain informed about the regulatory environment and to keep track of any changes that may affect their investments. By considering these risks and challenges, investors can make informed decisions and navigate the Indian stock market with greater confidence.

To mitigate these risks, you can take the following steps:

 

Admiral Markets Review

Admiral Markets Review

star-empty star-empty star-empty star-empty star-empty
star-full star-full star-full star-full star-full

Pros

  • list bullet Over 40,000 active clients from 110+ countries, carrying out an average of 1.5 million trades per year.
  • list bullet Competitive spreads as low as 0.5 pips and up to 500:1 leverage for forex trading.
  • list bullet Provides access to over 8,000 trading instruments, including 40+ forex pairs, 200+ stocks, and 5+ cryptocurrencies.

Cons

  • list bullet Admiral Markets has relatively high minimum deposit requirements for some account types, such as those in GBP.
  • list bullet Some users have reported slow response times from customer support, during excessively busy periods.
Libertex Review

Libertex Review

star-empty star-empty star-empty star-empty star-empty
star-full star-full star-full star-full star-full

Pros

  • list bullet 0% fees on stock trades, minimum deposit of only $10 or equivalent
  • list bullet Over 322 tradable assets available
  • list bullet Unmatched user-friendly interface, easy for beginners to catch on

Cons

  • list bullet Unavailable in some countries, including the United States
  • list bullet Only features two types of accounts (Demo and Standard)

Conclusion

CoinBharat artwork of a Zoomer stock investorIn conclusion, investing in the Indian stock market can be a highly lucrative opportunity for retail investors. However, it is essential to conduct thorough research and analysis before making any investment decisions. The guide has covered various critical aspects investors should consider, including the best stock brokerages, choosing the best Indian stocks, and tips for evaluating companies and industries. Additionally, we have provided a comprehensive list of the top Indian stocks investors should consider, which includes Reliance Industries Limited, HDFC Bank, Infosys Limited, TATA Consultancy Services (TCS), and Bajaj Finserv.

It is crucial to recognise that investing in Indian stocks involves risks and challenges, such as market volatility, currency fluctuations, geopolitical risks, and regulatory risks. However, investors can mitigate these risks by diversifying portfolios, conducting thorough research, and seeking professional advice.

Making informed investment decisions requires careful research, analysis, and a deep understanding of the market and industry trends. By considering the information in this guide and following the recommended strategies, investors can position themselves to take advantage of the best Indian stocks for the next 10 years and potentially earn substantial returns.

FAQs

What is the minimum amount of money required to invest in Indian stocks?

The minimum amount of money required to invest in Indian stocks depends on the brokerage firm, but it can be as low as Rs. 500.

How can I track the performance of Indian stocks in real time?

You can track the performance of Indian stocks in real time through various online platforms and mobile apps.

Can non-resident Indians (NRIs) invest in Indian stocks?

Yes, non-resident Indians (NRIs) can invest in Indian stocks.

What are the taxes I need to pay on my Indian stock investments?

The taxes on Indian stock investments include capital gains tax, securities transaction tax, and dividend distribution tax.

How can I stay up-to-date with the latest news and developments in the Indian stock market?

You can stay up-to-date with the latest news and developments in the Indian stock market through financial news websites, social media, and market analysis reports.

What are the risks of investing in penny stocks in India?

The risks of investing in penny stocks in India include low liquidity, lack of information, and high volatility.

How can I find a reliable stockbroker to invest in Indian stocks?

You can find a reliable stockbroker to invest in Indian stocks by researching online, asking for referrals, and comparing fees and services.

Is it necessary to have a demat account to invest in Indian stocks?

Yes, it is necessary to have a demat account to invest in Indian stocks.

Can I invest in Indian stocks if I live outside of India?

Yes, you can invest in Indian stocks if you live outside of India, but you need to comply with certain regulations and open a non-resident external (NRE) or non-resident ordinary (NRO) account.

How do I know when to sell my Indian stocks?

You can sell your Indian stocks based on your investment goals, market trends, and financial analysis of the company's performance.