InvestorQ : What are the different sectors in stock market?
Ayushi Kampani made post

What are the different sectors in stock market?

nishi Shah answered.
3 years ago

Hello! To answer this let me first explain the stock market. The stock market is a platform where equity share of public limited companies are offered for sale to the common public. This equity is also known as stock and so comes the term “stock market”. These stock or equity of every company are listed with a stock exchange of the country, for India, it is BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). These listed equity shares are traded, i.e bought and sold on the stock exchange. Initially, the trading was physical, wherein the buyer and trader use to quote the price manually at BSE ring. However, with the advancement in technology, the stock exchanges have become online and transparent. This means that trading of stock happens through online platform with real-time price quote of the buyer and seller for the respective equity share of a company.

Now, as there are N numbers of industries operating at a different area, phases, products, and services. These listed companies in the stock market vary from each other. Companies that focus in manufacturing medicine are collectively known as Pharmaceutical sector, Steel manufacturing products are categorized as Steel Industry, companies manufacturing Fast-Moving-Consumer-Goods (FMCG) like soap, hair oil, packaged foods, beverages, toiletries, over-the-counter drugs, and other consumables products comes under FMCG, companies that provide banking and allied service comes under BFSI sector and many more to go. So, we can say that the sector allocation primarily on their core business activity. Other than the said sector there are many sectors like infrastructure, Insurance Sector, Automotives, Technology, Cement/Construction, Media, Retail/Real Estate, etc.