Top Indian Stocks Owned by BlackRock

Top Indian Stocks Owned by BlackRock: BlackRock is a global investment company founded in the United States in 1999. The company has a presence in 36 countries with customers across the Americas, Europe, Asia, Australia and EMEA. The company is an investment manager for individuals, educational and non-profit organizations, pension funds, insurance companies and governments.

Top Indian Stocks Owned by BlackRock

set by BlackRock BlackRock India Fund This is to enable investors to get a share of India’s economic growth. This fund is a major player in the Indian stock market, accounting for 70% of all Indian funds.

This gave heavy weightage to the dominant large-cap companies in the Nifty50 index. Now, let’s take a look at which companies have the highest weighting and learn a little more about these giants.

Top Indian Stocks Owned by BlackRock #1 – Infosys

Infosys is a global leader in digital services and consulting. It was founded in 1981 by Mr. Narayan Murthy and six engineers from Pune. The company successfully secured its first client, Data Basics Corporation, in New York that same year.

In 1983, Infosys moved to Bangalore and established its permanent headquarters. It opened its first international office in Boston in 1987 and finally went public in 1993. From humble beginnings in the early 1980s, Infosys has grown into a massive IT conglomerate with a presence in over 56 countries.

Currently, Infosys operates several platforms under the following names: Edgeverve, Infosys Finnacle, Infosys Live Enterprise Suite, Infosys Polycloud, Infosys Equinox, and much more. The company derives most of its revenue from the financial services and insurance industry (29.8%), followed by retail (14.5%) and telecommunications (12.3%).

The company derives most of its revenue from North America (61.8%), followed by Europe (25.7%). India and Rest of the World generate 9.9% and 2.6% respectively.

BlackRock has given Infosys the highest weighting of about 8.2% in its BlackRock India Fund.

Top Indian Stocks Owned by BlackRock #2 – Reliance Industries (reel)

Reliance Industries is India’s largest private sector company with a market capitalization of Rs. 15.8 billion True to Chrome’s motto growth is life The company has grown significantly from a textile manufacturer to a giant in the petrochemical sector.

Reliance’s story begins in 1957 when Dhirubhai Ambani returned from Yemen and started a small yarn trading business. The business underwent an exceptional transformation in the hands of Mukesh Ambani, who joined the Reliance board in 1977.

His educational background in chemical engineering led Reliance to enter the petrochemical business and establish the world’s largest petrochemical refinery. Located in Jamnagar, Gujarat, the refinery has a production capacity of 6.6 Lakh barrels per day with integrated petrochemical, port and associated infrastructure.

The company earns approximately 64% of its revenue from its refining and petrochemicals segment, and an additional 25% from its retail segment. Digital services account for just 2.01%, while oil and gas accounts for about 1.19% of revenue. Although O&G made only a negligible profit, the segment saw strong growth of 113% compared to the previous year.

Reliance earned a profit of Rs. 9.03 Lakh Cr in FY23, up 23.27% from Rs. 7.32 Lakh Cr in FY22. However, net profit growth slowed to 9.04%, up from Rs. 67,945 Cr in FY22 to Rs. 74,088 Cr in FY23.

RIL holds the second largest holding in BlackRock India Fund, or about 7.84% of the total fund.

Top Indian Stocks Owned by BlackRock #3 – HDFC Bank

HDFC Bank or Housing Development Finance Corporation Bank is India’s largest private sector bank with deposits of Rs. 18.83 Lakh Cr. The bank has 7821 branches across India. 34% of branches are located in semi-urban areas, followed by metropolitan cities (28%).

The bank was a subsidiary of the now merged HDFC Ltd, India’s largest housing finance institution. HDFC Ltd was founded by Shri HT Parekh in 1977. He envisioned providing affordable loans to India’s middle class to provide better home ownership opportunities.

The success of HDFC Ltd led to the creation of HDFC Bank, which would further enhance financial inclusion in India. The bank was established in 1994 and was approved as a Scheduled Commercial Bank by RBI in 1995. It was one of the first few banks to receive approval from the RBI.

On April 4, 2022, HDFC Bank & HDFC Ltd announced their intention to merge, with a timeline of 12 to 18 months to complete the merger. The merger was intended to improve efficiency across the financial group and, in particular, to integrate the two companies’ home loan divisions.

HDFC Bank (pre-merger) net interest income increased by 20.6% from Rs. 72,010 Cr in FY22 to Rs. 86,842 Cr in FY23. Net profit increased at a slightly higher rate of 21.21% from Rs. 36,391 Cr in FY22 to Rs. 44,109 Cr in FY23.

The company holds the third highest holding in BlackRock India Fund at 6.89% in FY23.

Top Indian Stocks #4 Owned by BlackRock – Axis Bank

Axis Bank is the third largest bank in India with deposits of Rs. 9.46Lakh Cr as of FY23. Currently, the bank has approximately 4,900 branches across the country and offices in major global cities such as Singapore, Dubai, and London.

The bank was promoted by Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and National Insurance Corporation of India (NIC). It began operation in 1994.

In fiscal 2023, the merger and acquisition process of Citibank India Consumer Business was completed. Management’s focus on increasing and improving margins resulted in a 21% increase in CASA growth.

This ultimately resulted in an increase in net interest margin of over 55 basis points, increasing from 3.47% in FY22 to 4.02% in FY23. Banks earn 64% from the interest they charge on loans, 18% from other investments and 14% from commissions or brokerage.

Axis Bank’s net interest income increased from Rs. 33,132 Cr in FY22 to Rs. 42,946 Cr in FY23, growing by 30% over the year. At the same time, the company’s net profit declined by 23% from ₹14,207 Cr to ₹10,918 Cr in FY23.

BlackRock India Fund maintains a high holding of 5.19% in Axis Bank as of FY23.

Top 5 Indian Stocks Owned by BlackRock – Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) is the flagship IT business under TATA that provides global IT and consulting services. TCS was later incorporated through the efforts of a person called . Father of Indian ITHis name is Fakir Chand Kohli.

FC Kohli holds a Master of Science degree from the Massachusetts Institute of Technology (MIT). After working for a short time in the United States, he returned to India and joined Tata Electric Company. Eventually, he worked his way up to become a director of the company.

In 1969, he helped set up Tata Consultancy Services at the request of JRD Tata. He won the first overseas IT contract from the United States in the four years since the company was founded. In 1989, the company signed a US$10 million contract with Swiss Clearing Corporation, a major milestone for the company.

The company has crossed many of these milestones over the past 54 years to become India’s largest IT giant in terms of revenue and market capitalization. Today, TCS is a global leader in cloud, cognitive business operations, consulting and cybersecurity.

TCS gets 38.2% of its revenue from banking, financial services and insurance companies. The telecom and retail sectors account for approximately 16.7% and 16.6% respectively. Healthcare and manufacturing account for approximately 10.9% and 9.4%, respectively.

The company earned a profit of Rs. 2.28 Lakh Cr in FY23, up 17% from Rs. 1.95 Lakh Cr in FY22. Despite strong sales growth, net profit rose only 10%, up from Rs. 38,450 Cr in FY22 at Rs. 42,303 Cr in FY23.

BlackRock India fund has assigned 4.92% weightage to Tata Consultancy Services in the fund.

List of BlackRock Holdings Holdings

The list below outlines the top 10 stocks held by BlackRock.

conclusion

BlackRock India fund holds a total of 40 stocks with a recovery PE ratio of 25.21 as of October 31, 2023. The fund currently manages assets worth US$470 million. However, this fund has only achieved a return of 156.90% since its launch in 2006.

The fund’s poor performance can be attributed to the relatively poor performance of large-cap stocks such as Infosys and Reliance. These companies have donated 115% and 105%, respectively, over the past five years.

So do you think the BlackRock India fund accurately represents the Indian stock market? Do you think the fund should be exited or stocks should be added to the fund? Please let us know in the comments below.

Written by Nasir Hussein

by utilizing stock screener, stock heatmap, Backtesting Portfolioand stock comparison The tools on the Trade Brains portal give investors access to comprehensive tools to identify the best stocks, stock market newsBe aware and invest well.