Different Sectors in Stock Market: Which are the best stocks under each of them?
Sectors in Stock Market: Introduction
With the ever-growing interest in the share market, there is a drive among intelligent investors to learn more about varied jargon used in the market. That is what brings you here as well, right?
Well, in light of this, you must have seen the stock market making headlines about a particular sector taking away the market by storm. Especially with covid around, some sectors like healthcare and consumer witnessed a high boom while other sectors like aviation couldn’t seem to have seen the other side of the door until very recently.
So let us understand the reasons why a particular sector outperforms while the other struggles to survive. Also which sector should deserve a chance in your portfolio based on your investment periphery..
What are Sectors in Stock Market
Let’s say you are looking to watch something that gives you shiver spines on Netflix, what would you look for? a thriller section right? Or if you are surfing about the best stocks to invest under Rs 1, you will immediately check out the finance blog in Indmoney. What are these after all? Categories. Stock market sectors have the same philosophy.
Sectors in the share market are merely a way to classify the Indian stocks based on the industry type in which they operate. The marketplace is like an indefinite curveball with more than 1900 companies listed on the stock exchanges. This makes it difficult for an investor to segregate them, especially in times when a stock market segment is at fall.
Market sectors help the investors to understand where they should park their money based on the market performance and help them to diversify their portfolios based on the best-performing stocks of that sector. Further in this article, you shall find some of the best-identified stocks as per their share market sectors.
Identifying Different Sectors in the Indian Stock Market
The market sectors prove to be handy to identify some hidden gems in the stock market. The Indian stock market is a hub of varied sectors, where there is no definite answer to how many sectors are there in the stock market. However some of them can be certainly identified as household names. Let us look at some of the key sectors in the Indian stock market.
|Market cap (in Rs cr)
|Reasons to Invest
|Oil & Gas
|Software & IT Services
Relevant Factors before Investing in a Market Sector
It is important for an investor to understand, that even though an industry must be all in limelight, it is still important to consider some of the relevant points before making an investment decision
If you choose to invest in a particular industry based on the records it has been set in that year, you must check the financial health of the company in that industry. You must check if the company shall be able to pay its liabilities and has an earning potential in the future.
Your risk tolerance must be an important factor before making an investment decision. Some sectors may appear to be highly appealing but involve a huge amount of risk. If you are an investor who cannot afford to take an ultimate risk with your portfolio, you must carefully scrutinize the fundamentals before investing
Your investment goals
It is important that as an investor you must not invest based on a herd mentality rather you must as per your investment goals. If you are a long-term investor you must consider sectors that shall not become obsolete in the long run, whereas if you deal in short-term profits, little playing around with your stocks shall not hurt.
Best Stocks as per Stock Market Segments in India
Let us now look at some of the best stocks as per their stock market segments in India
|Market cap (in cr)
|Market Price (in Rs)
|Associated Alcohols & Breweries
|Bajaj Electricals Ltd.
|Indian Oil Corporation
|Oil & Gas
(Data as of November 25, 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Important things to remember:
1. Do Not Blindly Follow Hot Tips
No matter how credible the source is, never follow a stock marketing tip blindly without conducting thorough research personally. Always select the stocks after doing proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can push you down under the risk pretty quickly.
2. Eliminate Loser Stocks from Portfolio
There is absolutely no guarantee that a stock will rise after a great fall. Know that it is extremely important to be practical about what is possible and what's impossible in the stock market. So, upon realizing that a stock is performing poorly in your portfolio, accept your mistake and sell it immediately to prevent further losses.
3. Don't Exceed Your Investment Budget Abruptly
While it's true that long-term investments are way better than other forms of investment, you shouldn't exceed your investment budget in a haste. Instead, decide on a fixed amount and invest it across various good stocks. Rather than investing in only one stock, divide your budget evenly across multiple good-performing stocks and shares.
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns.
Which sector is currently performing well in the Indian stock market?
There is not one sector that performs well throughout as the economic conditions keep changing constantly. However, Infrastructure, banking, and power stocks are some promising sectors as per this year's investment cycle.
Which Industry shall boom by 2030?
As per the reports, the Power and Healthcare sector is likely to boom by 2030.
What is the full form of GICS system?
GICS is the acronym for The Global Industry Classification Standard (GICS). GICS divides the global market into 11 sectors with 24 industry groups and about 69 industries.