loader2
Partner With Us NRI

Open Free Demat Account Online with ICICIDIRECT

5 Sectors that are Likely to Sweep the Market in 2021

Introduction

Investors keep a close watch on sectors that make big news. To choose suitable securities to invest in, you need to understand the market movements and learn about their impact on specific sectors. The Share Market is volatile, and you will always see an upward or downward trend, but some sectors remain stable and will generate high returns for investors in 2021.

Sectors that Look Promising to Sweep the Market

1. Banking


The banking sector has survived the pandemic. Many Mutual Funds have increased their allocation to the banking sector. The banking stocks have consistently generated solid returns and are considered relatively safer than stocks in other sectors. It is believed that the banking and financial sector will sweep the markets, with strong revenues and profit this year.

2. Infrastructure


One of the primary drivers of the economy is the infrastructure industry. The government focuses on developing this sector and offers several initiatives to companies that help make considerable investments in the road maintenance and highway department. The government is also focusing on renewable energy and urban transport. It is a solid option for investors who seek long-term opportunities.

Additional Read: 5 Thumb Rules of Investing in Market

3. Pharmaceuticals


In the pandemic, the pharmaceutical sector has become a key area of focus across the world. As companies compete to develop a vaccine and offer medication to help beat the virus, there is a significant swing in investments in this sector. The suppliers will become major contributors in the sector, and investments in pharma companies will deliver stellar returns over the next few years.

4. Information Technology


There is a boom in the IT sector, with remote businesses and learning becoming trends. The work from home trend has become the new normal in the pandemic, leading to a surge in demand for high-speed internet connectivity, laptops, and smartphones. It has undoubtedly led to an acceleration in the sector's development and growth, which gets reflected in the IT market sector. It has become attractive and could be a valuable long-term investment.

Also Read: 5 smart tips for beginners in the Stock Market

5. Chemicals


Many investors who are moving out of China consider India as an ideal alternative, and chemicals are a primary sector growing in the country. The global market share of India is growing, and the economy's future in the industry holds massive potential. Several large companies are investing in business expansion. For investors, the chemical sector could be one of the most lucrative bets for investment.

Conclusion 

Despite the pandemic, the market in India is on a path towards recovery, and for any investor with long term goals, understanding these sectors will be crucial. They look promising and may bring great opportunities and generate tremendous returns. Investing in the stock exchange when trading at a lower value will give you a good chance of developing high returns when the market improves.
 

Keywords:

Share market-1 time
Stock exchange- 1 time
Market sector- 1 time
 
 Disclaimer :

ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990.The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Most Popular

  • 13 May 2022
  • ICICI Securities

The Five-Point Financial Planning Checklist For Your Family

Whether you just got married or planning to have a baby or have dependents, you should have financial plans for every stage in your life to ensure a secured future for your family members. Here are five things you can do financially for your family.   

  • 12 May 2022
  • ICICI Securities

What is a Zero Coupon Bond?

You get fixed returns in the form of interest until maturity when you invest in a bond. Zero-coupon bonds work a little differently. In this article, find out what zero-coupon bonds are, their advantages and whether you should invest in them. 

  • 12 May 2022
  • ICICI Securities

What are Cross Currency Pairs?

The forex market is the largest financial market globally. Currency trading is a lucrative and booming business. While most currencies trading happens in relation to the US Dollar, some don’t. That forms the basis of cross currency pairs. Here’s what you need to know about it. 

  • 12 May 2022
  • ICICI Securities

Investing principles from Benjamin Graham: The Father of Value Investing

Benjamin Graham was a British born economist, professor, and investor who taught at Columbia University. He was also a mentor to some of the most famous investors of the 20th century, including Irving Khan, John Templeton, & Warren Buffett. Buffett called him "the second most influential figure in his life, only after my father". 

  • 12 May 2022
  • ICICI Securities

How to Invest in Nifty 50?

The Nifty 50 is the benchmark index of the National Stock Exchange. It represents the 50 largest companies listed in India. Investing in the Nifty 50 can be a good idea for those looking to make index-linked returns. Here’s how you can invest in the index. 

  • 12 May 2022
  • ICICI Securities

Investment philosophy of Cathie Wood: The most powerful woman on Wall Street

Catherine Duddy Wood, also called Cathie Wood, is an investor who primarily invests in disruptive technologies and is the founder, chief executive officer, and chief investment officer of ARK Investment Management, LLC, an investment management firm mostly active in the United States.

  • 11 May 2022
  • ICICI Securities

How to Use Technology to Improve Your Finances

Technology has made life simpler for everyone. In the realm of personal finance, technology has streamlined many processes—from budgeting to automating your payments. On National Technology Day, let’s look at how technology has transformed our finances. 

  • 11 May 2022
  • ICICI Securities

How to Invest in your Every Goal with Mutual Funds?

Each of us is unique. We have different needs and goals in life. Some of us can ride along swinging markets, while some may need a relatively conservative investment tool. 

  • 11 May 2022
  • ICICI Securities

Four Reasons Why Entrepreneurs should Invest in Equity Mutual Funds

Equity mutual funds provide growth opportunities not just for individual investors but also for entrepreneurs and corporates. They make excellent investments for anyone looking for wealth creation. This article will give you four reasons why businesspeople should consider investing in equity mutual funds.