Top Performing Sectors in the stock market

Selecting a particular company to buy its stock can be challenging for a new investor entering the market without any particular knowledge about the company. But learning about the different sectors/industries can make it easier as the list of companies investible becomes clear. 

So let’s look at which sectors are top-performing in the stock market.

1. Pharmaceuticals and Health Care 

The last two years have been a roller coaster for the world economy and especially the Indian economy as well due to the pandemic. But as the news of introducing a vaccine in the market got traction the stock market reacted in a positive way for the pharma companies involved in the manufacturing and distribution of the vaccines.

2. Banks

Banks were not as affected by the pandemic as they were part of the essential class and so have given a steady return to investors. Top-performing banks generally bring consistent returns to investors while the returns might fluctuate in the case of low-performing banks. The services the banks provide and the revenue they bring in will affect the returns they generate. 

3. Information Technology

The IT industry has seen a boom in 2020-2021 with the majority of the businesses depending on online platforms for meetings, announcements, etc. New apps have been launched to cater to the new user base that has been created and has made IT companies a lot of revenue, which has made the investors very happy. 

4. Construction

Companies like L&T and other construction-based companies have seen a rise in stock prices from 2021 as work has tremendously taken off on different projects, for example, the Mumbai coastal road project has seen many updates and that has resulted in the stock price rise of L&T construction. Other projects have also helped the construction stocks to rise.

5. Automotive

In Spite of the two years gone facing the pandemic, problems like supply chain issues, parts not being able to be delivered, car and motorcycle launches being delayed, the automotive industry has still witnessed a gradual rise in the stock market as customers still were able to offer the cars and motorcycles but may not have given higher sales figures for the companies. New players have joined the sector pushing electric technology for the future. Sales of electric vehicles are constantly increasing. 

These were the top sectors to invest in. However, markets can fluctuate at any time and any sector can see a rise or fall. Due diligence will. Do check out our other article on How to start investing in the stock market.