Diversified Stocks

Diversified stocks are linked to companies that are into multiple businesses, whether it is manufacturing biscuits, or selling cigarettes. These companies are not linked to any particular segments and operate in multiple sectors. However, they may enjoy the stronghold of any particular business like manufacturing, services, logistics, supply chain management and IT, among others.

Investors can buy diversified sector stocks from online brokerage platforms like Upstox after opening a Demat account and linking it with their bank account. Before investing in a diversified sector stock, it is important to research the company’s financials. They must also understand their segment-wise profitability and profit breakdown. Investors can also seek advice from SEBI-registered advisors for investment in diversified sector stocks.

While the idea of operating in different segments may look lucrative for these companies, the successful execution requires strong management and operational framework. Diversified sector stocks might be unlikely to get impacted by losses in any specific segment, but at the same time, they may fail to outperform sector-specific stocks (like pure FMCG or the IT sector companies). At times, companies fund their expansion to different segments through heavy borrowing. Higher debt may lead to several issues in the long run.

Investors looking for an option to diversify their portfolio and gain exposure to different market segments may consider investing in diversified stocks. Investors with lower risk appetite and a goal for stable returns and long-term growth can also bet on diversified stocks. Before investing in these stocks, it is important to analyse their financial performance and growth prospects.

Companies linked to diversified stocks can adapt to evolving market situations and at the same time get the benefit of diversification. These firms would be able to amplify the growth opportunities in multiple sectors and mitigate the overall risk. Diversified sector stocks can offer stable returns with consistent growth in the long term.

Largest Diversified sector company is Grasim Industries Ltd with a market capitalization of ₹184463.50.

Today's Top gainers in Diversified sector are:

DCM Shriram Ltd (3.73%)

Balmer Lawrie and Company Ltd (1.70%)

Prism Johnson Ltd (1.46%)

3M India Ltd (1.45%)

Grasim Industries Ltd (1.35%)

Today's Top losers in Diversified sector are:

Binani Industries Ltd (-5.04%)

Gillanders Arbuthnot & Co Ltd (-2.66%)

Aspinwall and Company Ltd (-0.65%)

Aditya Birla Real Estate Ltd (-0.45%)