When someone decides to do business, then the first question is present in the beginning, which business will be beneficial, for this we collect information, how much will be the profit, what will happen to this business in the future, how much will be the capital, etc. In the same way, in the stock market While investing in the stock market.
Investing in which sector we will invest, of SIP investment in mutual fund it is very important to know that we will get good returns. When we are new investors in share market then it is very beneficial to segregate sector wise companies. Getting sector wise information brings clarity to invest.
Here we will analyze each sector separately and know its future and how the company grows. By getting sector wise information, what is the future of the business and what can be the profit of margin, it is understood. Here we will briefly practice all the sector sector wise investment in the stock marhttps://www.forbesindia.com/article/explainers/nifty-50-stocks-list-weightage-sectors/85791/1ket, which will be useful for us to invest.
How do you select sector wise stocks?
Selecting sector-wise stocks involves a systematic process of researching and analyzing companies within specific sectors or industries. Here’s a step-by-step guide on how to do it:
- Understand the Market Cycle: Start by understanding the current stage of the economic and market cycle. Different sectors tend to perform better at different points in the cycle. For example, technology and consumer discretionary sectors often perform well in bull markets, while defensive sectors like utilities and healthcare may perform better during economic downturns.
- Identify Your Investment Goals: Determine your investment objectives and risk tolerance. Are you looking for growth, income, or a balance of both? Your goals will influence which sectors you should focus on.
- Sector Analysis: Conduct a thorough analysis of each sector’s fundamentals. This includes studying factors such as:
- Economic Indicators: Pay attention to economic data like GDP growth, inflation rates, and interest rates, as these can impact different sectors differently.
- Industry Trends: Research the specific trends affecting each sector. For instance, in the technology sector, you might look at trends in cloud computing, artificial intelligence, or cybersecurity.
- Regulatory Environment: Understand the regulatory landscape for each sector, as changes in regulations can significantly impact companies within that sector.
- Competitive Landscape: Analyze the competitive dynamics within each sector and identify industry leaders and laggards.
- Financial Analysis: Once you’ve narrowed down your sectors of interest, delve into the financials of individual companies within those sectors. Key financial metrics to consider include:
- Revenue and Earnings Growth: Look for companies with consistent revenue and earnings growth over time.
- Valuation Metrics: Evaluate a company’s price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and other valuation metrics to determine if the stock is undervalued or overvalued relative to its peers.
- Debt Levels: Assess a company’s debt levels and its ability to manage its debt obligations.
- Dividend History: If you’re seeking income, examine a company’s dividend history and dividend yield.
- Technical Analysis: Consider technical factors such as stock price charts, moving averages, and relative strength indicators to identify entry and exit points.
- Risk Assessment: Evaluate the risks associated with each sector and individual stocks within that sector. Diversify your portfolio to reduce risk by holding stocks from different sectors.
- Stay Informed: Keep up with news and developments related to the sectors you’re interested in. Market conditions can change rapidly, so staying informed is essential.
- Portfolio Management: Finally, construct a diversified portfolio that includes stocks from different sectors to spread risk. Monitor your portfolio regularly and be prepared to adjust your holdings as market conditions and sector performance change.
Remember that investing in individual stocks can be risky, and it’s important to do your research or consult with a financial advisor if you’re uncertain about your investment decisions. Diversification and a long-term perspective are key to managing risk when investing in sector-specific stocks.
Automobile Sector –
Automobile sector is dependent on many of its elements for investment, as this sector has a limitation on production, so the pattern of recession in this sector is more and the pattern of bullishness is also more. Looking from the point of view of 2021, the production of electronic vehicles is going to increase more in the coming time because the vehicles running on petrol, diesel and gas will be replaced by the electric vehicles gradually, for this every government of the world has started making policies for it. Is.
Earlier, making electric vehicles was not happening due to lack of costing and research, but Tesla Motors have brought in good research market for this and the auto sector is going to change in the coming time. This initiative is related to the project of global warming, which reduces pollution, so it is expected that the auto sector will be good for the next twenty years. We can also utilized the SIP investment mutual fund for auto sector.
Listed companies in the auto sector and its related companies, this market is very big. Talking about India, Tata Motors, Maruti Suzuki, Mahindra, this Indian company are doing well in the market even by competing with foreign companies. Therefore, this sector is very profitable from the point of view of investment in the stock market. Is. There are many such small companies in the auto sector that do not make direct vehicles, but their parts are made and are performing well in the auto sectors and are getting at a low price, just you have to check its balance sheet and the setup of the direct company. Earlier
Top Automobile Sector Company –
- Maruti Suzuki
- Tata Motors
- Hero Motocorp
- TVS Motors
- Bajaj Auto
Energy Sector –
In this sector, companies like Tata Power, Adani Group, NTPC work, and natural gas, coal, and solar energy work in all the business markets related to it, which are energy related projects, it is very beneficial to invest in it. Thermal power and solar thermal energy will give good benefits in the coming time and there is more continuity in its development, the slowdown in this sector is very less.
OIL and gas resources are limited, but thermal power and solar energy are the energy of the future, which has no reason to be limited, so investing in the stock market Energy sector is very profitable. We can also used to SIP investment in mutual fund which made for energy sectors group of companies mutual fund.
Top Energy Sector Company –
- Reliance Industries
- Oil India
- Adani Total Gas
FMCG Sector –
It means fast moving consumer goods which are perishable goods and whose expiry works for one year, it is called FMCG sector. The things that deteriorate quickly, their products seem more in the market, their scalability is more, their profitability is less, but there is a market for everyday things.
Products made from milk, drinks, vegetables and their products whose expiry is not more than one year. This sector gives you continuity, it does not have profit like other companies, but its growth is continuous. These companies are good for long term smart investment in the stock market.
For example – Companies like ITC, Nestle, Dabur, Hindustan Unilever are performing well in the market, in this only the companies which are small but can perform well in future, so you can invest by checking their fundamentals. We can also used SIP investment in FMCG sector companies mutual fund.
Top FMCG Sector Company –
- Hindustan Unilever Ltd.
- ITC Ltd.
- Nestle India Ltd.
- Dabur India Ltd.
- Britannia Industries Ltd.
Information Technology Sector –
IT Sector This is the highest return sector for the last twenty years, but today all its major companies are running at higher prices. Yet there are many companies in this sector that are still cheap in price to invest in the stock market for smart investment.
In the coming time, the entire economy is going to be converted into digital market, so IT sector is an important service provider for these digital market changes. Profit of margin means that the growth of these companies is very good from other sectors, so every investor keeps one IT sector company in his portfolio. We can also used SIP investment in IT sector companies mutual fund.
Top Information Technology (IT) Sector Company –
- Tata Consultancy Services
- HCL Technology
- Wipro Ltd.
- Tech Mahindra
Banking & Finance Sector –
Banking and finance sectors have performed well, since the past and many private banks and finance companies are giving good retail. Hence Banking and Finance Sector This is a consistently performing sector in which the returns are good and there are many good options available in the market to invest here. Through Bank Nifty, we can check the performance of this sector in the banking and finance sector investment in the stock market.
TOP BANKING AND FINANCE SECTOR COMPANY –
- HDFC Bank
- ICICI Bank
- Bandhan Bank
- Axis Bank
- Bajaj Finance
Telecom Sector –
Telecom sector is performing well due to technology and android mobile in India, big companies are dominating this sector and the company offered in this sector or running at high cost i.e. lack of sharp investment share price, still this sector in terms of long term investment. Investing in is a profitable deal. Fundamentals of these companies are good, but investment options in this sector are very limited.
Top Telecom Sector Company –
- Vodafone Idea Ltd.
- Reliance Jio
- Bharti Airtel
- Bharat Sanchar Nigam Ltd.
- Mahanagar Telephone Nigam Ltd.
Pharma & Health Care Sector –
Pharma sector is a very good sector for investment in the whole sector, there are many small companies in it, which can be considered a good & smart investment from a future point of view, it has a good growth rate in comparison to other sectors because the profit margin of this sector is high. The rest of the sector companies could not give good results in the entire lockdown, but the quarterly results of the pharma sector have been good.
Top Pharma Sector Company –
- Davis Lab
- Glenmark Pharma
- Piramal Enterprise Ltd
- Sun Pharma
Real Estate Sector –
The growth rate in the real estate sector has come down for the last few years, but this sector is very good for smart investment and that too long term investment in the stock market, there are many companies which are available at good prices and after the recession, the market remains in the market. In this, you can expect good returns in the coming time, just the investment should be long term.
Top Real Estate Sector Company –
- DLF Ltd
- Godrej Properties Ltd
- India Bull Real Estate Ltd
- L&T Reality Ltd
- Oberoi reality Ltd
Service Sector –
Apart from the service companies of banking and IT sector, whatever service base companies are there, it can be used to analyze in these sectors as a sharp investment share price. In the service sector, the production cost is less than other companies, there is no need to invest more money for setup, so the profit of margin is high in it, so this sector is very beneficial for investment.
Due to the development of information and technology, the service sector is growing very fast because in the age of web site, every customer needs good services at one click of their mobile, so this sector is good to invest in.
Infrastructure Sector –
Mainly this company works for the big projects of the government and its profit of margin is also good, so this sector is very good to invest in future, real estate and infra, whatever production and infra related to this sector. Services are they can give good returns, so this sector is very good for smart investment in the stock market.
Top Infrastructure Sector Company –
- L&T Infra
- Reliance Infra
- GMR Infra
- IRB Infra
- Hindustan Construction Company
Consumer Durable Sector –
The consumer durable sector is also very big and the things that every family puts in their daily life is its market, in which people buy things like television, fridge, air conditioning, they also get good returns if you invest in a good company. Choose to practice.
Top Consumer Durable Sector Company –
- blue star Ltd
- Crompton greaves
- Voltas Ltd
- Philips India Ltd
- Other Sectors –
There are many sectors in the stock market to smart investment in but some of the important ones I have mentioned above. There are other such small and small sectors in the share market in which you will get good companies to invest.
Top Other Sector Company –
- Spice Jet -Aviation Sector
- ACC Cement – Cement Sector
- Aditya Birla Fashion -Retail Ltd – Retail Sector
- ZEE Entertainment – Media Sector
- Aarti Industries – Chemical Sector
Top Performers Sector –
- Information technology sector
- pharma and health care sector
- Infrastructure sector company
- Chemical sector
- Agriculture Products
- Alcohol products
- Aviation sector
- FMCG Sector
- Banking & Finance Sector
Without knowing the sectors & sharp investment share price, you will not be able to know the scope of smart investment, so sector wise companies give you a clear idea about the growth. Many sectors depend on the government policy, due to which the growth of those companies in the future depends. For example, when the government takes up development projects, cement companies, infra companies do a good job, and whatever companies have related to it, they perform well.
Due to the influence of the global market i.e. Information and technology, some companies perform well. For example, due to the introduction of 4G or 5G technology in the telecom industry, the company earns a good profit by selling new products.
In this way, we have tried to know in brief about some important sectors here for smart investment, in the coming articles, we will practice each sector in detail so that we will get the best companies to invest in the stock market. If you want to smart investment in mutual fund then we can utilized more sectors in one investment by investing in the SIP investment mutual fund.