According to the most widely used classification system, the Global Industry Classification Standard, there are 11 different stock market sectors (GICS).
Companies involved in the oil and natural gas industries are included in the energy sector. The energy sector also comprises enterprises that supply oil and gas producers with equipment, resources, and services. Surprisingly, it excludes many renewable energy companies, which are instead classified as utilities.
Companies in the materials sector produce a variety of items for use in manufacturing and other purposes. Chemicals, construction materials, containers and packaging, as well as mining stocks and companies that create paper and forest products, are all part of the materials industry.
The industrials industry includes a diverse range of enterprises that all require the usage of heavy machinery. Airlines, railroads, and logistics firms, as well as organizations in the aerospace, defense, construction, and engineering industries, are all part of the industrials sector.
There are two main elements in the healthcare industry. Pharmaceutical and biotechnology-based treatment firms make up one component, while healthcare equipment and services make up the other.
The financial sector is made up of companies that deal largely with money. Financials include insurance businesses, brokerage houses, consumer finance providers, and mortgage-related real estate investment trusts, among others.
Information Technology Sector
The IT industry encompasses businesses engaged in various types of technical innovation. Some information technology firms specialize in developing software or offering services linked to implementing technological solutions, while others focus on developing the equipment, components, and hardware that make technology possible.HitachiCredit Canada Life
Real Estate Sector
Some companies in the industry are in charge of creating new real estate developments and then managing them by finding tenants for various spaces within the property. Furthermore, most real estate investment trusts (REITs), which are special tax-favored business organizations that participate in many aspects of the real estate industry, are included in the real estate sector.
Communication Services Sector
The communication services sector is the most recent of the GICS sectors, and it encompasses a few important areas that were formerly classified as part of other sectors. One component of the business is telecommunication services providers, which includes both wireless telecom networks and suppliers of traditional landline services.
The utilities industry includes just about every type of utility company you can imagine. Utilities that specialize in providing electrical electricity to residential and commercial consumers, as well as natural gas transmission and distribution specialists, can be found in this sector.
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About the Author- Gaurav Heera is a stock market analyst & trainer with many years of experience in the field. He also heads DelhiCourses, an institute known for its best Stock Market Course in Delhi.