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Glossary: 18 sectors in the Indian economy
The banking sector in the Indian stock market includes companies that offer banking and financial services. Many of these companies are dedicated to holding financial assets for others, and they invest those financial assets as a leveraged way to create more wealth.
2. Finance and financial services
The finance and financial services sector includes everything related to investing, finance and handling money in the economy. Many banks that are part of the banking sector also come under the financial services sector. In addition to this, the sector also includes companies engaged in the provision of other financial services like credit card issuers, insurance companies, co-operatives, pension fund companies, mutual fund companies and other smaller financial entities.
The automobile or automotive sector, often abbreviated to the auto sector, includes a wide range of businesses and companies that design, develop, manufacture, market and sell motor vehicles.
4. Consumer durables
Consumer durables refer to the category of goods that are enduring in nature, and do not wear out quickly. This sector includes companies that are engaged in the manufacturer of such consumer durables.
Fast Moving Consumer Goods (FMCG) are exactly what they sound like - they are products that are in high demand, and so, they sell quite quickly. These products generally have a low shelf life, like soft drinks and chocolates, and often, they may even be perishable in nature. India’s FMCG sector is one of the largest sectors in the stock market.
The tech sector, often abbreviated to IT for Information Technology, is the segment of the market that includes companies engaged in the manufacture of software, hardware or semiconductor equipment. It also includes companies engaged in providing internet services and other technology-based services.
The pharmaceutical sector, abbreviated as the pharma sector, consists of companies that discover, develop , produce, and market pharmaceutical drugs.
8. Oil and gas
The oil and gas sector of the stock market consists of companies involved in the exploration, extraction, refining, transporting and marketing of petroleum products like oil and natural gas.
The healthcare sector in the stock market includes companies that provide medical services, manufacture medical equipment or drugs, provide medical insurance, and facilitate the provision of healthcare to patients. There is a slight overlap with the pharma sector here.
10. Consumer discretionary goods and services
This sector includes companies that manufacture, sell or provide non-essential consumer goods and services.
The media sector consists of companies engaged in the production, publication and distribution of media.
The metal sector is made of companies that are dedicated to the location and extraction of metal and mineral reserves.
Realty or real estate is a sector that includes companies that are in the business of real estate.
14. Basic materials
This is a sector consisting of companies involved in the discovery, development, and the processing of raw materials needed by other sectors.
The energy sector consists of companies related to producing or supplying energy in various forms.
The industrials sector includes companies that make finished products, which are then utilized in the construction, manufacturing and other industries.
In the telecom sector, you’ll find companies that are involved in the business of exchange of information over significant distances by electronic means like words, voice, audio, or video.
This sector consists of water, gas and electric companies.
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