The stock market is divided into multiple sectors under the
Global Industry Classification Standard (GICS). There are 11 major stock
sectors classified under GICS as follows-
Energy sector includes all the companies
associated with oil, gas, coal, fuel and energy equipment and supplies. Judging
oil and gas companies is very simple as one just needs to see the rate of oil. An
uplift in the oil prices means the oil and gas companies are heading strong
while the opposite happens in the case of downfall of prices. Mostly, the
prices remain stable and so the companies are also stabilized.
This sector will always remain profitable
because medical aids are always required. The companies which produce
pharmaceuticals and healthcare equipment along with the companies providing
healthcare services are included in this sector. There are several big and well-recognized
names associated in this field which have a reputation of selling the best
medical products in the market.
Electricity, gas, and water are our basic
utilities and so the companies of this sector are never going to come down
because these are the basic amenities on will always need. There are many
regional and secure companies related to this sector and it is very safe to
invest in the stocks of the utility segment of the stock market.
The companies operating malls, apartments,
offices and senior living communities come in the category of the real estate
sector. This is undoubtedly a very good sector because these companies get
their income from the rent payers and the values of properties that usually
tend to increase. One has to think less and invest more in this sector.
This sector includes all kinds of material
producing companies in the field of metals, chemicals, construction, packaging,
and paper. Such companies commonly deal in the supplying of these materials to
other companies which further sell their products. One can consider this sector
to be the backbone of several other sectors.
This sector includes insurance, real-estate
and bank companies. This sector is very closely linked to the stock market. The
increase and decrease in the interest rates of banks and other companies help
one to judge and evaluate the profit or loss of investing here. This sector is
highly profitable but also turns out to be speculative sometimes.
The growth in the field of technology is
unstoppable and so is this tech sector. It is a sector which can bring massive
profits to its investors. All kinds of software, internet, and semiconductor
companies are included in this sector. There are big names and this sector has
maintained its position of leading stock sector from the past few years.
Many kinds of industries such as defense,
construction, manufacturing, airlines, aerospace, and machinery come under the
industrials sector. There are a lot of high profile and solid companies in this
sector. It is also a stable sector that tends to give good profits to its
investors because most of the companies have a well established financial
background due to which the shareholders have to worry less about losses.
Companies and online platforms such as
websites and applications are all under this sector. The popularity of this
sector is widely growing and it is considered to be a game of profit to invest
in this sector right now.
This sector has one of the most popular
companies under it because people spend much money on the products of these
companies. The companies related to apparels, restaurants, retailers, hotels,
autos, household products, and media come under this sector. All these companies
are linked with the daily life of people which is why it is a good choice to
This sector is also somewhat related to the
Consumer Discretionary sector because it includes the food, tobacco and
beverage companies. Some of these companies also manufacture several products
of personal and household use just like Consumer Discretionary. This sector is
safe to invest in because all these products are used on a daily basis by all