Blue chips are the crème de la crème of the stocks in the stock family. They are supposed to be solid and dependable stocks that deliver good returns year after year to investors. However, blue-chips are not eternal safe havens. A blue chip today could become a dud tomorrow, and similarly a mid-cap of today can become a blue-chip tomorrow. So to get the right perspectives on the definition and the performance of blue chips in India, The Analyst, invited experts A N Sridhar, Fund Manager (Equities), Sahara Mutual Fund; Vikram Achreja, Director, Aster Business Research; Dipen Shah, Vice-President, PCG-Research, Kotak Securities; K Venkitesh, National Head-Distribution, Geojit Financial Services Ltd.; I V Subramaniam, CIO, Quantum Advisors Private Ltd.; and Anita Gandhi, Head, Institutional Business, Arihant Capital Markets Ltd. to share their views.

Anita Gandhi: A blue chip company is a well-established, financially-sound company having a sustainable business model. The company's products need to be nationally accepted. These companies sell high-quality and widely- accepted products and services. Blue chip companies can withstand downturns and operate profitably in adverse economic conditions. This ensures their stable and reliable growth. Needless to say, all blue chip companies are backed by excellent managements having solid professional background. Such companies keep rewarding their shareholders with consistent dividends and bonuses apart from capital appreciation.

A N Sridhar: A blue-chip stock can be defined as nationally recognized, well-established and financially sound company that has demonstrated its ability to pay dividends in both good and bad times. A blue chip company generally sells high-quality, widely-accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which help to contribute to their long record of stable and reliable growth. The name `blue chip' came about because in the game of poker the highest chip denomination is colored blue. These are the companies that are mainly referred to as the one that has risen or fallen when the markets rise or fall.

Blue Chips, The Analyst, Vikram Achreja, Sahara Mutual Fund, Geojit Financial Services Ltd., Arihant Capital Markets Ltd., Reliance Industries, Infosys, State Bank of India, HDFC, Hindustan Unilever, Fast mooving consumer goods, FMCG, National institute of information technology, NIIT, Indian equity markets, Mergers and acquisitions, M&A.