In the stock markets, sectors refer to an industry or a theme that you can invest in. When you find a sector or theme attractive, you can either invest in stocks in the sector or you can invest in the index futures assuming that they are liquid enough. Let us understand some popular sectors themes in the stock market.
Popular sectors or industry groups in the stock markets
Sectors refer to industry groupings which is a similar set of products. Here are some key sectors.
From a macro economic perspective, the previous week was surely disappointing for the Indian markets. The reasons were not far to seek. On the one hand, CPI inflation touched the critical 5% mark for the month of June. At the same time the IIP growth for the month of May 2018 came in sharply lower at just 3.2%. In the midst of these economic disappointments, the other macro concerns like rising trade deficit, global trade wars and a weakening rupee continue to haunt the economy.
At a time when the world markets have been worrying about oil prices, a likely default on Italian bonds and trade wars between the US and China, the Nifty and Sensex have been scaling new highs. Some may argue that the rise in Nifty is due to the fact that Indian economy is agnostic to what happens in the world. That may be a very simplistic argument. It is true that India just accounts for 1.6% of the global trade in goods and 3.2% of the global trade in services. However, the impact of flows can be quite pronounced, as we have seen in the past. Also, India imports nearly 75% of its daily crude oil needs and is therefore not totally immune to global trade trends. Then what explains this anomaly.
By – Mr. Jayant Manglik, President of Retail Distribution at Religare Securities Limited
Should an investor buy now? Or wait and try to time the market?
Let’s start by summarising the situation.
The rupee has fallen, mainly due to higher crude prices. Even more than rising US Fed rates, this remains the biggest speed-breaker to India’s growth story in the near term.
You have just about learnt that equities can generate tremendous profits for you over the long term. But you cannot jump into any stock. You need to take a well thought and calibrated investment decisions. Broadly, you need to consider fundamental factors and technical factors before zeroing in on the stock. Continue reading
