The Indian stock market is extensive and contains stocks that can suit any specific investment strategy. This is because of numerous asset classes, such as equities, derivatives, debt, etc., and various sectors and industries. Among the numerous sectors you can invest in, the manufacturing sector is one of the most sought-after.
The manufacturing sector contributes 17% to the Indian GDP and is poised to export goods worth Rs. 8.33 lakh crores by 2030. India is one of the largest manufacturing hubs, with manufacturing companies expanding at a rapid pace. With a sector performing so well, manufacturing stocks can provide hefty returns to investors if based on extensive stock and sector-wise research.
This blog will help you understand how to use manufacturing stocks and invest in them as part of a balanced portfolio.
Read more: What are equity shares
What are manufacturing stocks?
Manufacturing stocks refer to shares of companies that manufacture goods. These companies operate within the manufacturing sector and sell their goods domestically or export them to other foreign countries. The manufacturing process generally involves transforming raw materials into finished products through the use of machinery, labour, and various production techniques.
Manufacturing stocks belong to the manufacturing sector but can also belong to a wide range of industries such as automotive, aerospace, electronics, consumer goods, pharmaceuticals, machinery, etc. Manufacturing stocks can also belong to sub-sectors, such as chemicals, construction materials, textiles, and food processing.
Manufacturing stocks trade on stock exchanges such as NSE and BSE following an IPO, which is the process of offering a company's shares for the first time to the general public.
Read more: Large-cap stocks
