Best High Liquid Stocks in India to Invest in 2024

  • 10 May 2024
  • Read 17 mins read

Investors often seek out liquid stocks for their ability to be easily bought and sold on the stock market without significantly impacting their prices. In 2024, amidst evolving market dynamics and economic fluctuations, identifying the best high liquid stocks in India becomes crucial for investors aiming to build a resilient and diverse portfolio. These stocks not only offer liquidity but also possess strong fundamentals, promising growth prospects, and stability in their price movements. In this blog, we'll explore some of the top liquid stocks in India that investors may consider adding to their investment portfolio in 2024. 

What are Liquid Stocks Meaning?

In the stock market, liquidity is defined as the ease with which the stock can be purchased and sold without significantly affecting its price. The stock's liquidity is influenced by several factors such as the company’s size, the number of outstanding shares and the level of investor interest.

Investors usually prefer liquid stocks because they can be bought and sold easily without significantly affecting their stock price and high trading volume. 


List of Popular Liquid Stocks in India.

After learning about liquid stocks, let's explore the top 10 high liquidity stocks in India. The following table provides lists of popular stocks, including their industry, current share prices and market capitalisation.

Stock NameIndustryShare PriceMarket Capitalisation (Cr)
SBIBanksRs. 779Rs. 6,85,677
Bajaj Finance LtdConsumer Finance Rs. 7,215.8Rs. 4,44,118
Axis Bank LtdConsumer FinanceRs. 1,089.25Rs. 3,32,130
Maruti Suzuki India LtdAutomobilesRs. 12,649.35Rs. 4,04,482
ONGCOil, Gas & Consumable FuelsRs. 271.95Rs. 3,40,170
Adani Ports and Special Economic Zone LtdTransportation InfrastructureRs. 1,352.05Rs. 2,91,327
IOCOil, Gas & Consumable FuelsRs. 138.95Rs. 2,04,051
IndusInd Bank LtdBanksRs. 173.35Rs. 2,40,484
Hindalco Industries LtdMetals & MiningRs. 601.85Rs. 1,29,009
Indiabulls Housing Finance LtdThrifts & Mortgage FinanceRs. 177.75Rs. 10,910

Disclaimer: This list of liquid stocks contains data updated as of 26th April 2024. However, it's important to conduct detailed research before making any investment decisions in these stocks.

Top Liquid Stocks in India: An Overview

The above-mentioned companies are considered to have liquid share prices. Below is the basic overview of these companies.

  • State Bank of India

    State Bank of India (SBI) is a public sector bank. The bank provides a range of products and services to personal commercial enterprises, large corporates, public bodies and institutional customers.
    SBI has reported an 83% growth in standalone net profit at Rs 16,695 crore for the quarter ended March. It records operating revenue of Rs. 511,186.62 crore for the trailing 12-month period. The company's revenue growth of 16%, pre-tax margins of 16%, and ROE of 16% have all contributed to operating revenue. This is one of the highly liquid options stocks on the NSE.
  • Bajaj Finance Ltd

    Bajaj Finance is a non-banking finance company (NBFC). Company activities include lending and allied activities. Its trailing 12-month operating revenue is Rs. 44,610.10 Cr. This company boasts an impressive 31% annual revenue growth, a notable pre-tax margin of 38%, and an exceptional return on equity of 21%. The company is also one of the most liquid stocks for intraday trading in India. 
  • Axis Bank Ltd

    Axis Bank provides products related to corporate and retail banking. The bank’s segment includes treasury, corporate/wholesale banking, retail banking and other banking business.
    On a trailing 12-month basis, Axis Bank has generated an operating revenue of Rs. 115,362.49 Cr. This figure is backed by 23% of outstanding annual revenue growth. In addition, pre-tax margin of 18% and an ROE of 8%, which is fair but has room for improvement. Also, it is one of the high-liquidity stocks in NSE.
  • Maruti Suzuki India Ltd

    Maruti Udyog Limited, the largest automaker in India, was established in 1981 by the government of India. The company operates as the Indian subsidiary of Suzuki Motor Corporation. Currently, Maruti Suzuki dominates the Indian passenger vehicle market as the nation's largest exporter of vehicles. In addition, it is one of the highly liquid stocks in NIFTY 50.
  • ONGC

    With its headquarters in New Delhi, Oil and Natural Gas Corporation Limited is India's leading oil and gas company. The ONGC has grown into the global leader in oil and gas exploration. The company contributes significantly to India’s energy landscape, producing about 70% of its crude oil and approximately 84% of its natural gas.
  • Adani Ports and Special Economic Zone Ltd

    Adani Ports and Special Economic Zone Limited (APSEZ) is India's largest private port operator, managing 13 ports and terminals. Thiruvananthapuram's Vizhinjam International Seaport and the first port-based special economic zone (SEZ) in Mundra, Gujarat, are noteworthy.
  • IOCL

    Indian Oil Corporation Limited (IOCL), also known as IndianOil, is a government-owned company in the oil and gas industry. With its capacity and revenue, it is the largest state-owned oil producer in the country. On September 1, 1964, Indian Oil Corporation Ltd was formed by merging Indian Oil Company Ltd with Indian Refineries Ltd.
  • IndusInd Bank Ltd

    Srichand P. Hinduja, the head of the Hinduja Group, founded the IndusInd Bank in 1994. In its 1997 IPO, the company raised a total of 1,800 crore, supplemented by an additional 1,000 crore in the issuance of preference shares. The bank has 2,631 branches and 2,903 ATMs that serve 3.7 crore customers in India.
  • Hindalco Industries Ltd

    In the metals sector of India, Hindalco Industries Limited plays a prominent role. In 1962, the company began producing aluminium and copper in Renukoot, Uttar Pradesh. Hindustan Aluminium Corporation Limited was rebranded as Hindalco in 1989. During its peak, the company produced 20,000 metric tons of aluminium metal and 40,000 metric tons of alumina annually.
  • Indiabulls Housing Finance Ltd

    Home loans are offered by Indiabulls Housing Finance Limited, a registered company with the National Housing Bank (NHB). As part of Indiabulls Financial Services Limited, the company provides home loans, loans against property, corporate mortgage loans, lease rental discounting, and residential construction loans.

How to Invest in Liquid Stocks?

Here are some strategies for investing in most liquid stocks or ways to find stocks that suit you:

  • Value Investing

    Value investing is a strategy to identify highly liquid stocks for intraday trading in future. But currently trading at a discount to their intrinsic value. In this investing strategy, investors identify companies with strong fundamentals, such as a low price-to-earnings ratio, high dividend yield, and strong financials. The objective of such type of investing is to buy undervalued stocks and hold them until the market recognises their true value.
  • Growth Investing

    Growth investing identifies companies that may experience strong growth in the future. In this strategy, investors look for companies with high earnings growth rates, expanding market share, and strong management teams. The objective of growth investing is to buy growth stocks with high growth potential and hold them for a long time to benefit from future growth.
  • Technical Analysis

    Technical analysis involves analysing stock price and trading volume to identify patterns and trends. Investors use technical indicators and charting tools to identify potential buying or selling opportunities. They aim to gain from short-term price movements based on technical signals.

How to Use Liquid Stocks to Strategise in the Stock Market?

For stock market strategies to be effective, understanding stock liquid or liquidity is vital. Based on different trading scenarios, here's how to use liquidity to strategies your trading:

A long-term investor doesn't have to worry about liquidity. Long-term holdings of stocks allow investors to weather periods of low liquidity. By contrast, day traders or swing traders require high liquidity since they trade over a very short period of time. Trading liquid stocks is essential for quickly executing trades and managing stop-loss orders, reducing exposure to market fluctuations.

To execute orders efficiently, short-term traders must navigate small price movements. For day traders, liquidity is essential to closing positions quickly to mitigate losses.

If you have a low-risk appetite, choosing the appropriate stocks is paramount. Although high-volume stocks may offer liquidity, they are often characterised by significant price volatility. By investing in medium-volatile, liquid stocks, you can achieve both liquidity and manageable risk.

Take the BlinkX Route to Invest in Liquid Stocks

To invest in liquid stocks through BlinkX, follow the steps below:

  • Step 1: Open a Demat account with BlinkX. Also, ensure the Demat account is linked with a pre-existing bank account to carry out smooth transactions.
  • Step 2: Through a mobile-based application or web browser, sign in to your Demat account. 
  • Step 3: Next, choose the liquid stock you want to invest in. 
  • Step 4: Ensure you have enough funds in your bank account to purchase the stock. 
  • Step 5: Make a purchase at the stock’s listed price, specifying the number of shares. 
  • Step 6: Once a seller reciprocates your request, the purchase order is executed. After the transaction is completed, the amount is debited from your bank account, and the shares are simultaneously credited to your Demat account. 

Factors to Consider Before Investing in Liquid Stocks

Before investing in highly liquid shares, investors need to consider several factors. Some of the key factors include:

  • Expense Ratio: Investors prefer lower expense ratios. Liquid funds usually keep the expense ratio low by holding securities until maturity.
  • Investment strategy: An emergency fund can be created by investing in highly liquid stocks, which offer a reasonable return and high liquidity. They are well-suited for short-term goals. However, align your investment plan with objectives before investing. 
  • Return Potential: Liquid funds may offer significant returns, making them suitable for idle cash.
  • Risk Analysis: A liquidity share has a short asset maturity (up to 91 days), which makes it low-risk. However, they aren't risk-free. When an underlying security's credit rating drops, the NAV can also drop. 

Risks, Challenges & Advantages of Investing in Liquid Stocks

Liquid stocks may seem appealing due to their high trading volumes and accessibility, but it is important to recognise their risks and challenges. In the table below, let’s take an overview of the risks and benefits of investing in these stocks.

Risks and Challenges of Liquid StocksAdvantages of Liquid Stocks
There can be sudden price swings in highly liquid stocks. These factors are driven by market sentiment and external factors, which necessitate vigilant monitoring and risk management.Many buyers and sellers actively trade liquid shares. Therefore, they can be easily bought and sold in the market without substantially impacting stock prices.
Share liquidity can sometimes cause market detachment from the company’s fundamentals, necessitating thorough research before investing.Due to their substantial trading volumes, highly liquid stocks have lower transaction costs than less liquid options stocks.    
Stock prices of liquid shares tend to be more stable because there are many buyers and sellers. As a result, their investment value is less likely to fluctuate significantly.
Liquidity attracts many traders, so you have to navigate competition effectively and time your trades.Many liquid option stocks are listed on major stock exchanges, and these stocks are required to release regular financial reports to the public. Thus, informed decisions can be made based on the most current information available.
The price movements of high liquidity stocks can be influenced by herd behaviour, where emotional reactions can drive exaggerated price movements. Investing independently and disciplinedly is essential to avoid being swayed by the crowd.You can diversify your portfolio by investing in liquid shares across sectors, industries, and geographies. 

Differences Between Liquid Stocks and Illiquid Stocks

Based on the ease of trading, traders differentiate liquid stocks from illiquid ones. Due to high daily trading volumes, liquid shares can be brought or sold without significantly impacting their price. On the other hand, illiquid shares are traded in low volumes. As a result, they are difficult to buy or sell without affecting their price. Here is the table to understand the differences between liquid and illiquid stocks.

FeatureLiquid StocksIlliquid Stocks
Trading volumeHighLow
Bid-ask spreadNarrowWide
Price stabilityHighLow
Market DepthHighLow
Transaction CostsLow High
Liquidity RiskLowHigh
Ease of buying and sellingEasyDifficult
Price DiscoveryEfficientInefficient
Market Impact CostLow High

Investing in highly liquid stock in India may be an appealing option for investors seeking easy buying and selling options. These stocks have high trading volume, which indicates active investor participation. Investors can invest in these stocks through an online stock trading app. These apps provide quick trade execution and facilitate convenient access to the stock market. The advantages of investing in liquid stocks are lower transaction costs and ease of buying and selling. However, investors must know risks like sudden price swings, herd behaviour, and competitive trading.  

FAQs on Liquid Stocks

A stock's liquidity can be measured by how easy it is to buy and sell it at a stable price in its market. High-liquid markets allow assets to be sold, traded and bought quickly without causing significant price drops. A low-liquid market is exactly the opposite of a high-liquid market.

Liquidity is typically measured using the current, quick, and cash ratios.

There is an investment platform offered by every Asset Management Company (AMC) in India. This platform allows you to buy, sell, switch, initiate SIPs, and more. After registering on the platform and setting up your login details, you can begin investing in liquid stocks.

The lowest-risk option among debt funds is liquid funds, which invest primarily in short-maturity fixed-income securities. Therefore, they are suitable for risk-averse investors. However, investors should keep an eye on the market before investing.

The top three liquid stocks are Axis Bank, Bajaj Finance, and Tata Motors.