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Stock Market Sectors – 4 Major Sectors and 11 Sub Sectors

by | Last Updated On October 3, 2022

Learn about the 4 Major Stock Market Sectors and 11 Sub Sectors.

There are 4 Major Stock Market Sectors divided into 11 Sub Sectors. Here we will understand what are the 4 Major Sectors and 11 Sub Sectors in Stock Market.

Stock Market Sectors - 4 Major Sectors and 11 Sub Sectors

Stock Market Sectors – 4 Major Sectors and 11 Sub Sectors

List of 4 Stock Market Sectors and 11 Sub Sectors

Major Sectors Sub Sectors
Evergreen Sector :
  1. IT Sector
  2. Infrastructure Sector
  3. FMCG Sector
Defensive Sector :
  1. Utilities Sector
  2. Healthcare Sector
  3. Consumer Sector
Sensitive Sector :
  1. Automobile Sector
  2. Communication Sector
  3. Financial Sector
Cyclical Sector :
  1. Consumer Discretionary Sector
  2. Media and Entertainment Sector

Stock Market Sector Classification

As per GICS (Global Industry Classification Standard), Companies Listed in a Stock Market can be Classified as 4 Major Sectors further divided into 11 Sub Sectors. These are as follows:

1. Evergreen Sector

The evergreen sector lists those companies that are believed to continue growing in the long run. Demand for products and services under this sector are believed to grow continuously as is the case with Textile. Investors in this sector can expect rewards even after 5-10-15 or 20 years.

Three Sub-Sectors under this sector are:

  1. Information Technology Sector – Stocks of IT Companies in India. Check: Top 5 Best Performing Technology Mutual Funds in India
  2. Infrastructure Sector – Stocks Related to Infrastructure such as Highways, Railways, Airports, Renewable Energy such as Solar Energy etc.
  3. FMCG Sector – Stocks of companies producing Fast Moving Consumer Goods such as packaged food, cosmetics, household products for daily use etc.

2. Defensive Sector

Remember: Defensive Sector is different from Defence Sector that manufacture Arms and Ammunition for Defence.

Unlike Volatile Stocks, stocks under defensive sector are deemed to be reliable. Such stocks yield a stable income irrespective of the Market Condition even during Stock Market Crash.

This sector is basically Low-Risk, Low-Gain as the Stocks are Less Volatile and do not reward with High Returns.

Three Sub-Sectors under this sector are:

  1. Utilities Sector – Stocks of companies associated with Utilities like Water, Gas and Electricity.
  2. Healthcare Sector -Stocks of companies associated with Medical Equipment, Medicines, Hospitals, Pharmaceuticals etc.
  3. Consumer Sector – Stocks of companies associated with everyday products such as food and beverages, products for household and personal use.

3. Sensitive Sector

Business that mainly run of borrowed capital fall under this sector. This sector is highly sensitive to changing Interest Rates. There is NOT much impact on this sector by Market Conditions but there is Huge impact by Interest Rate.

Three Sub-Sectors under this sector are:

  1. Automobile Sector – Stocks of companies associated with Automobiles like EV, Car, Bus, Trucks etc. People often buy these assets with borrowed loan where Interest Rate plays a vital role.
  2. Communication Sector -Stocks of companies associated with communication such as phone call, messaging and internet services (4G, 5G etc).
  3. Financial Sector – Stocks of companies associated with Banking, Insurance, Housing, NBFC etc.

4. Cyclical Sector

This sector follows a cycle of Market High and Market are is highly volatile. Investors must be too careful while investing in this sector.

Two Sub-Sectors under this sector are:

  1. Consumer Discretionary Sector – Stocks of companies associated with Luxurious products that are not essential for a basic living. Example – Tour and Travel, 5-Star Hotel, Holiday Packages.
  2. Media and Entertainment Sector -Stocks of companies associated information and entertainment. Value of these stocks fluctuate with Market Volatility. Example: News Channels, Film and Cinema Industry.

FAQ: Stock Market Sectors

11 GICS stock market sectors are:

  1. IT Sector
  2. Infrastructure Sector
  3. FMCG Sector
  4. Utilities Sector
  5. Healthcare Sector
  6. Consumer Sector
  7. Automobile Sector
  8. Communication Sector
  9. Financial Sector
  10. Consumer Discretionary Sector
  11. Media and Entertainment Sector

Top 5 Risk-Free Sectors to Invest in Stock Market are:

  1. Banking Sector;
  2. Infrastructure Sector;
  3. Pharmaceuticals Sector;
  4. Information Technology Sector; and
  5. Metals and Chemicals

5 Sectors in India that are most likely To Grow in Next 5 Years and Perform Well in Future are:

  1. Green and Renewable Energy Sector;
  2. Healthcare and Insurance Sector;
  3. IT Sector;
  4. FMCG Sector; and
  5. Real Estate Sector

Conclusion

We hope now you have good idea about Stock Market Sector Classification. We always advise investors to invest in Evergreen and Defensive Sectors and maintain distance from Sensitive and Cyclical Sector.

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Santosh Das

Santosh is an Electronics Geek, Blogger and Young Entrepreneur. He possesses vast experience in the field of Electronics. Santosh has been an Investor and Investment Portfolio Manager for the Past over 20 Years. Keep visiting for daily dose of Share Trading and Stock Market Tips and Tutorials.

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