Top 3 Nifty50 Blue-Chip Stocks That Could Soar as India’s Economy Rebounds

Indian stock market index Nifty50 began another day in a muted tone. After opening, the benchmark indices dipped. Nifty50 fell over 50 points while Sensex slumped by 80 points. This week has been choppy for Nifty due to the Iran-Israel conflict. Several mid-cap and small-cap stocks have suffered.

Despite ending in the red, the index manages to maintain a respectable level. The market has to deal with several global and domestic concerns this week. However, the long-term picture of India’s economy is positive and as the economy rebounds later in the year, we could see the top blue-chip stocks gain momentum.

Reliance Industries

Reliance Industries is a global name, one of the country’s biggest industrial giants. Whenever the economy improves, Reliance gains momentum. The multinational giant has a presence across several industries including natural gas, petrochemicals, energy, entertainment, telecommunications, retail, and textiles.

Reliance stock is exchanging hands for Rs.1,436 and is up 17% year-to-date. It has soared 16.7% in six months but remained flat in 12 months. The stock is considered a hot property and has a price target of Rs.1,570 for 2025. It is India’s most valuable stock with strong growth prospects.

If you’re a long-term investor keen on buying large-cap stocks, this is the one to pick. Experts are positive about the stock and analysts have a buy rating. In the recent quarter, it reported a 6% year-over-year jump in consolidated profit and a 10% rise in revenue from operations. It declared a quarterly dividend of Rs.5.50 per share.

As crude oil prices continue to rise amid growing geopolitical tensions, there could be an improvement in the margins for Reliance. Several analysts believe Reliance Retail and the telecom segment could witness significant growth later this year. Once India’s economy improves and consumer spending increases, Reliance could rally.

Coal India Limited

There are multiple reasons to like Coal India Limited. The public sector undertaking is also the largest government-owned coal producer in the world. It generates over 80% of the total coal in India. I’m bullish on the stock because the company has recently opened over 30 mines and is launching five Greenfield sites in 2025.

The company has opened 32 defunct coal mines and has already awarded tenders for 27 mines while the remaining five are in the pipeline. India is heavily dependent on coal and the new mines will give a massive push to the company’s revenue. Coal India stock is trading for Rs.388. The company declared a final dividend of Rs. 5.15 per share.

The management is aiming for a production of 875 million tonnes this fiscal year amid the strong industry demand. The stock is down 18.77% in 12 months and is moving closer to the 52-week low of Rs.349. It gained momentum between August 2023 and December 2024 but has remained flat since then. However, the new developments and an improvement in India’s economy could boost the stock.

Analysts are bullish on the stock and ICICI Securities has a price target of Rs.440.

Tata Consultancy Services

Exchanging hands for Rs.3,426 Tata Consultancy Services stock hasn’t had a good 2025. The stock is down 16.70% year-to-date and about 20% in 6 months. The technology company has a presence across 46 countries and is one of the top information technology service providers. Overall, the stock is up 67% in five years.

The downward trend in the stock makes it a solid buy as it will rebound once the economy improves. The IT company reported a weaker-than-expected quarterly performance where the net profit was down 1.7% year-over-year while the revenue improved. Its net profit stood around Rs. 12,224 crore. An improvement in the economy is going to boost the technology sector and TCS is set to benefit. Its valuation looks attractive in comparison with its peers.

Overall, it is a strong investment, the management has always delivered, the numbers are strong and TCS has the ability to bounce back from the lows. Despite the recent dip, analysts have a buy rating for the stock and a price target in the range of Rs. 4,211 to Rs. 4,589. An improvement in discretionary client spending and the U.S. economy could benefit TCS in the near term.

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