1. What are low-risk stocks in the stock market?
Low-risk stocks are shares of financially strong companies with stable earnings, solid balance sheets, and lower price volatility compared to the broader market.
2. Why is HDFC Bank considered a stable stock?
HDFC Bank shows consistent profitability, controlled volatility, strong return on equity, and a zero debt-to-equity ratio, which support long-term stability.
3. How does Reliance Industries add stability to a portfolio?
Reliance Industries operates across energy, telecom, and retail, offering diversified revenue streams and a large market cap that supports resilience.
4. Are IT stocks suitable for low-risk investing?
Leading IT companies with global contracts and strong cash flows can provide defensive exposure, though short-term returns may fluctuate.
5. Is diversification important for reducing stock market risk?
Yes, spreading investments across banking, energy, consumer, healthcare, and infrastructure sectors helps manage overall portfolio volatility.