Stock Market Sectors

A sector is a part of an economy broader than an industry. There could be many industries in a sector. For example, the banking and financial services industries are part of the finance sector. Similarly, the pharmaceuticals and medical devices industries are part of the health care sector.

A stock market refers to a combination of stocks of companies that offer similar products or services in different sectors. The stock market helps investors understand companies engaged in various industries and sectors, e.g., FMCG, Banking, Metals, etc.

The world’s major stock markets are divided into different market sectors; company stocks that compete directly in the same industry or sector are listed together in an index. E.g., companies in FMCG, and IT in a broad-based index, like in Nifty 50 and SENSEX. Similarly, companies of the same sector in a sectoral index, like Bank Nifty, have different banking companies in a banking index.