Stock Market is divided into three parts (on the basis of their revenue, asset, net profit and market capital):
1. Large Cap such as Reliance Ind, Tata Motors, Tata Steel, Hindalco etc.,
2. Mid Cap such as Bharat Forge, Titan, Tech Mahindra etc.,
3. Small Cap such as Motherson Sumi, Soya Koyo, Hanung Toys etc.,
Further, these companies are divided on the basis of their sector such as
1.Metal Sector ( Ferrous: Tata steel, Sail, Jindal Steel etc and Non-ferrous: Hindalco, Nalco, Sterlite etc)
2. Automobile Sector: (4 wheeler: Tata Motors, Mahindra, Ashok Leyland and 2 wheeler: Bajaj Auto, Hero, TVS etc)
3. Aviation Sector: Jet Airways, Spicejet, Kingfisher
4. FMCG Sector: ITC, HUL, Dabur etc
5. Banking Sector: SBI, Axis, ICICI, IDBI, etc
6. Oil & Gas Sector:Reliance Ind, ONGC, MRPL, HP, BP, Cairn India etc
7. Power Sector: NTPC, Tata Power, Reliance Power, NHPC etc
8. Cement Sector: Ultratech Cement, ACC, Ambuja etc
9. IT Sector: TCS, Infosys, Wipro, HCL etc
10. Pharma Sector: Dr Reddy, GlaxosmithKline, Lupin, Sun Pharma, Ranbaxy etc
11. Telecom Sector: Bharti Airtel, IDEA, Reliance Comm, Tata Tele etc
& many more sectors such as Infrastructure (DLF, Unitech), Toys & Textiles, Engineering Sector (BHEL, L&T) etc
Before investing, you must analyse the market for atleast 6 months or you can take advise from the broker. You must calculate the percentage of risk which you can take and keeping that in mind you must take one stop loss.
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