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Sectors in Stock Market

Sectors in Stock Market

Companies can be divided into 12 major sectors. These sectors are:

→ Consumer Discretionary

→ Communication Services

→ Consumer Staples

→ Energy

→ Financial

→ Health Care

→ Industrial

→ Information Technology

→ Materials

→ Real Estate

→ Utilities

(1) Consumer Discretionary

Consumer Discretionary sector covers businesses that do businesses in Auto(it includes from manufactures to sellers), Retail(footwear, apparel, etc.), Textiles(from manufactures to sellers), Educational Services, Hospitality(Restaurants, hotels, cafes, etc.), Travel, Jewelry, etc. Top companies in this sector on the basis of market capitalization are Maruti Suzuki, Titan Company, Avenue Supermarkets, Bajaj Auto, Hero MotorCorp, Motherson Sumi Systems, Jubilant Foodworks, Voltas, MRF, Page Industries, Bata India, etc. This sector includes products with the cost of Rs. 10 chocolate to lakhs or crores of rupees of car. This section includes products that are essential and even non-essential or luxury items. NSE's Nifty Auto Index, Nifty Consumer Durables index covers some companies in this sector.


(2) Communication Services

The communication Services sector covers businesses that do business in Telecom Services(including infrastructure and equipment), Advertising, TV channels, and broadcasting, Online Sevices, Cable, and D2H, etc. Top companies in this sector are Bharti Airtel, Info Edge, Indus Towers, Vodafone Idea, Tata Communication, Indian Railway Catering, and Tourism Corporation(IRCTC), IndiaMART InterMesh, ZEEL, Sun TV, etc. Companies in this sector help in easing communication by providing them services related to it like cellular, wireless, cable network, etc. NSE's Nifty Media Index covers some companies of this sector.

(3) Consumer Staples

The Consumer Staples sector covers businesses that do businesses of alcoholic beverages, soft drinks, tea, coffee, FMCG(it includes food, personal products, tobacco, etc.), sugar, etc. Top companies in the sector are Hindustan Unilever, ITC, Nestle, Dabur, Britannia, United Spirits, Gillette India, Zydus Wellness, Varun Beverages, EID Parry, etc. Companies in this sector sell or manufactures alcoholic beverages, soft drinks, tea, coffee, FMCG(it includes food, personal products, tobacco, etc.), sugars, etc. Businesses of companies in this sector can be easy to understand but to choose one company for investing in is a hard nut to crack. NSE's Nifty FMCG Index covers some companies of this sector.

(4) Energy

The energy sector covers businesses that do the business of Oil & Gas. Top companies in this sector are Reliance Industries, Oil and Natural Gas Corp.(ONGC), Bharat Petroleum, Indian Oil, Hindustan Petroleum, Oil India, etc. Companies in this sector do the business of manufacturing oil and gas and even retail selling of it through gas stations. NSE's Nifty Energy Index, Nifty Oil & Gas Index covers some companies of this sector.


(5) Financial

The financial sector covers businesses that do the business of banking, NBFC, Stock Exchange, Insurance, Asset Management, Rating, etc. Top companies in this sector are HDFC Bank, Housing Development Finance Board, ICICI Bank, Kotak Bank, SBI, Bajaj Finance, Bajaj Finserv, SBI Cards and Payment Sevices, Muthoot Finance, etc. CRISL, BSE, etc. Companies in this sector do the business of lending money through the business of Banks or NBFC, provides cards to customers, manages assets of customers, etc. NSE's Nifty Financial services Index, Nifty Bank Index, Nifty PSU Bank Index, and Nifty Private Bank Index covers some companies of this sector.

(6) Health Care

The health care sector covers the businesses that do the business of pharmaceuticals, labs, hospitals, etc. Top companies in this sector are Sun pharmaceuticals, Divi's Lab, Dr. Reddy's Lab, Cipla, Aurobindo Pharma, Biocon, Lupin, Cadila, Apollo Hospitals, Pfizer, Abbott, etc. Companies in this sector do the business of making medicinal drugs, doing research, hospitals, etc. NSE's Nifty Healthcare Index and Nifty Pharma Index covers some companies in this sector.

(7) Industrial 

The industrial sector covers the business that does businesses of construction, ports, trucks and buses, electrical components, airlines, logistics, etc. Top companies in the sector are Larsen & Toubro, Adani Ports, Adani Enterprises, Eicher Motors, Havells India, Interglobe Aviation, Ashok Leyland, Escorts, Amara Raja, etc. Companies in this sector are in the manufacturing of batteries, trucks, buses, etc, companies in this sector also construct projects, etc. 


(8) Information Technology

The information technology sector covers businesses that do the business of producing software, IT services and consultancy, outsourced services, etc. Top companies in this sector are Tata Consultancy Services(TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, Larsen & Toubro Infotech, Tata Elxi, Vakrangee, Firstsource Solutions, etc. Companies in this sector are in the manufacturing of Electronic equipment, technology hardware, etc., provide outsourcing services, IT Services, and consultancy, Software services. NSE's Nifty IT Index covers some companies in this sector.

(9) Materials

The materials sector covers businesses that do the business of manufacturing paints, cement, mining(includes mining of coal, aluminum, iron ore, manganese, etc.), iron and steel, chemicals(including fertilizers and agrochemicals), metals(including aluminum, coke, copper, etc.), etc. Top companies in this sector are Asian Paints, Ultratech Cement, Hindustan Zinc, Shree Cement, JSW Steel, Pidilite Industries, Coal India, Vedanta, Hindalco, Berger Paints, etc. Companies in this sector are some of the global manufacturing giants. The business of these companies can be easy also and can be a bit difficult also. Some of these companies in manufacturing see commodities prices fluctuating throughout the year which results in their profits plunging. NSE's Nifty Index covers some companies in this sector.

(10) Real Estate

The real estate sector covers businesses that do the business of selling real estate properties, REITs, etc. Top companies in this sector are DLF, Godrej properties, Embassy Office Park REIT, Oberoi Realty, Indiabulls Real Estate, Phoenix Mills, Sunteck Realty, etc. NSE's Nifty Realty Index covers some companies in this sector.

(11) Utilities

The utilities sector covers businesses that do the business of renewable energy, power transmission and distribution, gas distribution, power infrastructure, etc. Top companies in this sector are Adani Green Energy, Power Grid Corp., NTPC, Adani Transmission, Indrapasath Gas, Gujarat Gas, Tata Power, etc. NSE's Nifty Index covers some companies in this sector.



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