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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.

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