Sectors are
typically considered to be a broad classification. Within each sector, numerous
sub-sectors and industries can also be further delineated. The Global Industry
Classification Standard also known as GICS is the primary financial industry
standard for defining sector classifications.
The Global
Industry Classification Standard was developed by index providers MSCI and
Standard and Poor’s. Its hierarchy begins with 11 sectors which can be further
delineated to 24 industry groups, 68 industries, and 157 sub-industries. It
follows a coding system which assigns a code from each grouping to every company
publicly traded in the market. The GICS coding system is integrated throughout
the industry allowing for detailed reporting and stock screening through
financial technology.
The 11 broad
GICS sectors commonly used for sector breakdown reporting include the
following:
Energy
Materials
Industrials
Consumer
Discretionary
Consumer
Staples
Health Care
Financials
Information
Technology
Telecommunication
Services
Utilities
Real Estate
Following
are the sectoral indices in NSE.
Nifty Auto
Index
Nifty Bank
Index
Nifty
Consumer Durables Index
Nifty
Financial Services Index
Nifty
Financial Services 25/50 Index
Nifty FMCG
Index
Nifty IT
Index
Nifty Media
Index
Nifty Metal
Index
Nifty Oil
& Gas Index
Nifty Pharma
Index
Nifty
Private Bank Index
Nifty PSU
Bank Index
Nifty Realty
Index
All sectors
are linked with economy but there are few sectors which are coupled to the
economy while few which also perform well in bad economy. If the financial
condition of the country is weakened, then Banking and Finance sector is
affected e.g. The financial crises of 2008. In times of economic downtime, Auto
sector is affected and does not perform as sales of auto is impacted during
downturn of economy e.g. The COVID-19 situation of 2020. Consumer durable
sector performs when economy is healthy and looking for growth prospects. In a
healthy economy all sectors perform but when there is a recession or lag in
economic growth, few sectors do not perform depending on the situation. The
pharma sector is performing currently with the down turn of economy. PSU banks
sector is in bad shape since a long time as the banking reforms in this sector
has not pleased the investors. Oil and Gas sector performs when Global economy
is in peak and demand of oil is high and prices are rising. Media sector
depends on the performance of the media and is usually dependent on the growth
of the media house. Metal is usually a gloomy sector and performs with
difficulty. In times of bad economy, it is in bad shape and when economy is
stable it generates results on investment but investment results are usually
moderate. IT sector has turn out to be an evergreen sector with its performance
in COVID-19 times. FMCG is usually a stable sector and depends on the demand in
the economy which usually does not go below or above a certain point.
https://www1.nseindia.com/products/content/equities/indices/sectoral_indices.htm
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