4 Quality Large-cap Debt-free Stocks To Watch In A Rising Interest Rate Scenario

Indian stock markets opened lower in trade today, on weak global cues. The US Federal Reserve hiked the interest rate by 75 bps, which is affecting the volatile equity markets. Nifty stood at 17,802.45 points, falling by 0.35%, at the time of writing on November 3. Here, 4 quality stocks have been discussed for investors to watch, in a situation when the interest rate is rising.

Life Insurance Corporation of India

The current market price of LIC stood at around Rs. 619/share on NSE, falling marginally. In the last 1 month its share price has fallen by 0.26%, the company has opened for public trading in May, 2022. The highest price of this stock is Rs. 918.95, and the lowest price of this stock is Rs. 588. It is a large-cap PSU stock with a market capitalization of Rs. 391,770 crore.

Maruti Suzuki India Ltd

The current market price of Maruti Suzuki stood at around Rs. 9,224.15/share on NSE, up by 2.44%. In the last 1 month its share price has surged by 7.92%, and in the last 6 months its share price has surged by 24.69%. The 52-week high level of this stock is Rs. 9,769, and the 52 week-low level of this stock is Rs. 6,536.55. It is a large-cap stock with a market capitalization of Rs. 278,802 crore. Top brokerage firm BNP Paribas has given a buy rating to this stock with a target price of Rs. 9511.90.

Nestle India Limited

The current market price of Nestle India stood at around Rs. 20,222.90/share on NSE, up by 0.81%. In the last 1 month its share price has surged by 6.48%, and in the last 6 months its share price has surged by 11.80%. The 52-week high level of this stock is Rs. 21,050, and the 52 week-low level of this stock is Rs. 16,000. It is a large-cap stock with a market capitalization of Rs. 196,566 crore. Recently, Nestle India, the parent stock of Maggie, announced a dividend of Rs. 120/ share.

Pidilite Industries Limited

The current market price of Pidilite stood at around Rs. 2,622.70/share on NSE, down by 0.45%. In the last 1 month its share price has fallen by 1.26%, but in the last 6 months its share price has surged by 12.85%. The 52-week high level of this stock is Rs. 2,918.95, and the 52 week-low level of this stock is Rs. 1,988.55. It is a large-cap stock with a market capitalization of Rs. 133,909 crore.

Why Should You Watch Debt-free stocks?

To control the mounting inflation rate in India, the RBI is hiking the repo rate to restrict liquidity in the country. If a company is having debt, the company will have to gear a certain amount of interest rate, attached to the primary debt amount. At a time, when the repo rate is rising, the interest percentage will also be higher for the company, which will impact its net profitability. Hence, investors like to watch debt-free stocks that have better future potential.

All of the above mentioned stocks are debt-free stocks.

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article. This article only incorporates the recent stock related information about the companies.