[Updated on 16th June 2021]

The economy of major countries can be divided into three sectors: primary, secondary, and tertiary. The primary sector includes raw materials; the secondary sector includes manufacturing; the tertiary sector includes services. 

The tertiary sector contributes the most to India’s GDP with iconic publicly traded companies like Larsen & Toubro, Tata Consultancy Services, HDFC, and more playing a crucial role in its growth. 

In this blog, we will examine the Indian services sector by looking at its past performance, popular stocks, and past performance. In the end, we'll tell you how Cube Wealth can help you invest in the best stocks from the services sector.

Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.

What Is The Services Sector?

The services sector includes companies that provide services rather than producing traditional goods. These brands charge for the value added by their service instead of a specific product.

Examples of services sector industries include:

• IT/Fintech
• Accounting & Auditing services 
• Healthcare & Tourism
• Trade
• Shipping
• Storage services
• Real estate services
  

The services sector contributes approximately 60% to India’s GDP while employing only 25% of the overall workforce. The IT industry contributes the most to the growth and revenue of the services sector.

Top 10 Most Popular Service Sector Stocks In India

1. Tata Consultancy Services

• Ticker: TCS
• Market Cap: ₹1,211,198 crores
• EPS: 86.71
• Beta: 0.62
• Present Value: ₹3,274.35
  

2. HDFC Ltd

• Ticker: HDFC
• Market Cap: ₹455,247 crores
• EPS: 104.70
• Beta: 0.96
• Present Value: ₹2,521.45
  

3. HDFC Bank

• Ticker: HDFCBANK
• Market Cap: ₹819,208 crores
• EPS: 57.60
• Beta: 0.89
• Present Value: ₹1,484.60
  

4. Reliance Industries

• Ticker: RELIANCE
• Market Cap: ₹1,425,398 crores
• Beta: 0.97
• Present Value: ₹2,211.65
  

5. ICICI Bank

• Ticker: ICICIBANK
• Market Cap: ₹443,174 crores
• EPS: 26.83
• Beta: 1.05
• Present Value: ₹640.10
  

6. Larsen & Toubro

• Ticker: LT
• Market Cap: ₹209,412 Crores
• EPS: 82.41
• Beta: 0.87
• Present Value: ₹1,490.90
  

7. State Bank of India

• Ticker: SBIN
• Market Cap: ₹380,143 crores
• EPS: 25.10
• Beta: 1.07
• Present Value: ₹425.95
  

8. Axis Bank

• Ticker: AXISBANK
• Market Cap: ₹229,815 crores
• EPS: 24.13
• Beta: 1.36
• Present Value: ₹749.80
  

9. Kotak Mahindra Bank

• Ticker: KOTAKBANK
• Market Cap: ₹349,019 crores
• EPS: 50.49
• Beta: 0.71
• Present Value: ₹1,760.60
  

10. NTPC

• Ticker: NTPC
• Market Cap: ₹116,166 crores
• EPS: 11.75
• Beta: 0.46
• Present Value: ₹119.80
  

*Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of India’s most popular service sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.

Past Trajectory Of Investment Returns In The Indian Services Sector

In India, the performance of the services sector can be tracked with the help of the Nifty Services Sector index:

How To Invest In Indian Services Sector Stocks?

Stocks from the services sector may seem promising to many investors but just like any investment, each stock must be evaluated based on merit through analysis and careful research. 

However, busy professionals may find stock analysis and everyday market tracking to be tedious. That’s where a powerful app like Cube Wealth becomes useful. 

Cube gives you access to Indian stock advice from industry experts Purnartha who have 7500+ clients and an AUM of ₹7000+ crores. Moreover, they have a solid track record of beating the market.

Purnartha's April 2009 to October 2020 CAGR was approximately 3x better than NIFTY:

Purnartha's investment strategy focuses on companies that have a strong balance sheet, high growth potential in the long term, and owners who have an active part to play in the company's success.   

This may be ideal for investors looking to create long term wealth backed by quality advice and a strong investment identity. 

Download the Cube Wealth app to invest in the best Indian services sector stocks with advice from industry experts Purnartha. 

Watch this video to learn how Indian stock advice works on the Cube Wealth app

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FAQs 

1. Why is the services sector important in the Indian stock market and economy?

Ans. The services sector is a vital contributor to India's economy, accounting for a substantial portion of GDP and employment. It encompasses a diverse range of industries and plays a significant role in supporting both domestic and international business needs.

2. Which are some of the prominent companies in the Indian services sector?

Ans. Leading companies in the Indian services sector include IT giants like Infosys and TCS, financial institutions such as HDFC Bank, healthcare providers like Apollo Hospitals, and telecommunications companies including Bharti Airtel.

3. What are the key trends and challenges in the Indian services sector today?

Ans. Current trends include the rapid growth of the information technology and software services industry, the expansion of e-commerce and digital payment platforms, and the adoption of telemedicine services. Challenges encompass regulatory changes, cybersecurity risks, and competition in the evolving market.

4. How can investors make informed decisions when investing in Indian services sector stocks?

Ans. To make informed investment decisions, investors should stay updated on industry trends, analyze individual company financials, and consider their investment objectives and risk tolerance. Consulting with financial advisors can provide valuable guidance.

Conclusion

The services sector in India represents a dynamic and integral component of both the stock market and the nation's economy. This sector encompasses a wide range of industries, including information technology, financial services, healthcare, telecommunications, and more, making it a significant contributor to India's GDP and employment

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