Blue chip stock is a high-quality and high-priced stock. It gains that status from its past record of being a high growth, high dividend paying company. These companies would be leaders in its field. The Blue Chip shares are of very large and well-recognized 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 market reputation. WHAT IS A BLUE CHIP COMPANY? A Blue chip company is very strong financially, with a solid track record of producing earnings and only a moderate amount of debt. It also has a strong name in its industry with dominant products or services. Blue chip companies have several characteristics: • They are usually large companies. • They are usually older companies. • They generally sell widely used products or services. • They perform relatively well during economic downturns. • They have records of long-term, stable growth. • They usually pay regular dividends, and those dividends usually grow over time. • They have reputations as management and industry leaders. • They are usually very creditworthy. As per market capitalization, the leading blue chip companies of India are Tata Consultancy Services (TCS), Reliance Industries, Oil and Natural Gas Corporation Limited (ONGC), Imperial Tobacco Company of India Limited (ITC), Housing Development Finance Corporation Limited (HDFC) Bank, Coal India, Sun Pharmaceutical Industries Limited, Infosys, State Bank of India (SBI) and Industrial Credit and Investment Corporation of India Limited (ICICI) Bank.