Porter's five forces

Investing into the Stock Market is investing into businesses. We need to choose businesses carefully while making investment decisions. But how to make a choice with so many options available. This plethora of choices, often makes it impossible to make a sensible decision.

In order to simplify this issue, the companies are classified on the basis of their operational activities and revenue stream, so that companies with a common set of operations and business models can be classified into common industries and sectors, for ease of investors, businesses and also various regulatory bodies.

So, it becomes important to undertake sectoral analysis before making any investment decision, so that to gain insights on the future of different sectors, possible growth in those sectors, challenges ahead and any major technological changes in future.

Sectors can either be classified on level of activities like Primary, Secondary or Tertiary Activity or Common operational aspects like BFSI, IT, FMCG, Auto, etc.

This analysis will give you a broad idea on how to approach the analysis of companies in that sector. It gives us detail about which sectors are aligned to the economic growth of our country, which can potentially outperform the economy in growth and which are likely to face challenges in futures.

• How to undertake sectoral approach? What are the different approaches for analysis?

• What are different sectors in the economy, and which of them are considered more important by our markets?
• What is the difference between Industry and Sector?
• How sector Analysis helps gain higher Return?

In order to know more and learn about trading and investment in the Indian stock market, sign up for a complete video course by Kundan Kishore titled "A Complete Course on Indian Stock Market”.