5 best Indian stocks to buy for Q3 2023
Indian companies have been some of the best performing stocks in the world in recent times. Our experts have combed through the Indian securities market and performed industry analysis on all the leading sectors in India to find the best Indian stocks to invest in.
What are the top stocks to buy in India?Copy link to section
There are thousands of stocks available to buy across India and our experts have chosen five of the best ones. You can find the latest price information in the table below, or scroll down to read more about why they’ve been chosen.
|#||Stock ticker||Company name||Trade now|
|3||LALPATHLABS||Dr Lal PathLabs|
|5||PFC||Power Finance Corporation|
1. Tata Motors (NSE: TATAMOTORS)Copy link to section
Tata Motors is an automotive manufacturer based in Mumbai that’s part of the Tata Group conglomerate that also owns Tata Consultancy Services, among other businesses. It produces a wide range of vehicles, from regular cars to lorries and construction equipment, owns the Jaguar Land Rover brand, and is responsible for one of the most popular electric vehicles in India.
The strength and breadth of its output has helped the company’s share price to surge towards its all time high since the onset of the pandemic. Its emphasis on electric vehicles, in particular, is a reason to be bullish about that trend continuing, while sales of all its commercial vehicles have risen over the past couple of years.
Tata Motors is listed on four different stock exchanges; which means you can get shares in it from whichever exchange is easiest, which might be either the National Stock Exchange of India or the Bombay Stock Exchange inside the country, or the New York Stock Exchange for most other investors.
2. HCL Technologies (NSE: HCLTECH)Copy link to section
HCL Technologies is one of the fastest growing technology companies in the world. It provides IT support and consulting to businesses from all across the spectrum and is already one of the largest corporations in India.
The company was already taking advantage of a digital trend before the pandemic, and since then demand for advanced technology and cloud-based services have only increased. The stock price is up by over 200% in five years and in that time it was voted as one of the world’s best companies to work for to boot.
Part of HCL’s growth strategy is to continue to invest in new technology. It has poured money into things like automation and AI, and tends to grow via acquisitions. That’s taken it into areas as diverse as banking and blockchain, and are an extremely positive sign that it can continue its recent growth trajectory.
3. Dr Lal PathLabs (NSE: LALPATHLABS)Copy link to section
Dr Lal PathLabs is a healthcare company based in Delhi. It specialises in screening for diseases, by performing things like blood and urine tests on patients. Founded in 1949, it operates around 1500 screening centres across the country.
The company has been a slow and steady grower for a few years but it’s done particularly well since 2019. Since then, the stock price has tripled, particularly in response to more demand for blood tests and screening services during the pandemic, but also because it has solid fundamentals as well.
Dr Lal’s has increased its revenue and net profit substantially over the last decade. A company that is able to generate more income every year is an extremely attractive investment opportunity and that’s why it has sealed third place on our list.
4. Hindustan Unilever (NSE: HINDUNILVR)Copy link to section
Hindustan Unilever is a subsidiary of the British food, beverage, and fast moving consumer goods (FMCG) conglomerate, Unilever. It’s based in Mumbai and owns 35 brands in its own right, including things like Lipton Ice Tea, Cif bleach, and Dove skin care products.
The Hindustan Unilever share price has been on the up for more than a decade. It’s grown by more than 600% over that time, and saw out the 2010s by acquiring GlaxoSmithKline’s Indian consumer division to further expand the products it offers.
The advantage of owning a blue-chip company like this is that it produces so many established products that it’s resistant to most economic struggles. Even the pandemic, with its effects on the movement of goods, barely made an impact on the share price. That reliability makes it an excellent addition to any portfolio.
5. Power Finance Corporation (NSE: PFC)Copy link to section
Power Finance Corporation is a financial services company that’s tightly linked to the Indian government. Its main role is as a company that provides financing for infrastructure projects, predominantly in the power sector.
Like many financial stocks, Power Finance’s share price tends to rise and fall in a cyclical manner. This isn’t necessarily a stock which is going to offer substantial growth, but it is a relatively safe one given that it has the backing of the government of India behind it.
The main reason for it featuring on this list is its dividend. Power Finance pays out one of the best dividend yields in the country, so it makes for a strong and steady bulwark to the rest of your portfolio.
Where to buy the best shares in IndiaCopy link to section
To get your hands on the best stocks in the Indian securities market, you need an online stock broker. Most brokers offer shares from all the major markets around the world, and so you can get started with Indian stocks by choosing one of the beginner-friendly platforms in the table below.
77% of retail CFD accounts lose money.
What is an Indian stock?Copy link to section
It is simply a company that is headquartered in India and whose stocks trade on one of the country’s stock exchanges. The specific industry (or industries) the company’s operations are based in varies, there are some large pharmaceuticals and FMCG companies, along with IT and manufacturing businesses, but their shared characteristic is their location. Any investor in India can buy shares in any of the companies on this list.
The best stocks in India are generally characterised by a long history of strong past performance, with positive net income over a period of years. You should always take a long term perspective and look for Indian stocks with strong fundamentals.
Are Indian stocks a good investment?Copy link to section
The best stocks in India offer a great way to create a diversified portfolio that includes companies based all around the world. Investing in companies that are geographically diverse means you’re less likely to be hurt by issues that affect local stock markets. India is one of the fastest growing economies and presents lots of opportunities to invest in the best stocks for the next 10 or 15 years.
There are stock market risks in India, as there are for every economy. Such stocks may be a bit more volatile or unpredictable than those in more established economies. It can also be risky if you don’t fully understand the Indian economy or the companies you’re investing in, so make sure to get fully familiar with Indian stocks before you invest in any.
The best approach is to choose a few different types of Indian stock so that your overall portfolio is balanced and isn’t too reliant on one company or industry for success. Large, popular Indian companies with a strong track record, known as ‘blue-chip’ stocks, are the safest way to invest, while cheaper stocks tend to come with the possibility of a higher reward but are more risky.
The stocks on this page represent a variety of companies, large and small, that you can combine to create a balanced portfolio based around the Indian economy. All you need to do to get started is choose a broker from the table above.
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