How Do Blue-Chip Stocks Perform in Recession?

Are Blue-Chip Stocks Recession-Proof?

– Blue-chip stocks are known for resilience during market crashes.
Large, established businesses can withstand economic slowdowns.

Why Blue-Chip Stocks Hold Up in Recessions?

– Strong balance sheets – Low debt and high cash reserves.
– Essential industries – FMCG, utilities, and pharma remain in demand.

Best Blue-Chip Stocks for Recession Investing

– ITC & HUL – FMCG demand remains stable.
– TCS & Infosys – IT services remain essential.

Risks of Blue-Chip Stocks During Recessions

– Cyclical blue-chips (like auto & metals) may see sharp downturns.
Dividend cuts can happen if profits decline significantly.

Investment Insights

– Look for Companies Expanding Fiber Networks: Telecoms with a strong broadband presence will see sustained growth.
Monitor Subscriber Growth & ARPU: Higher broadband adoption leads to steady revenue