Question

Describe the basis utility of India

Answer 1

Answer:

The utilities sector refers to a category of companies that provide basic amenities, such as water, sewage services, electricity, dams, and natural gas. Although utilities earn profits, they are part of the public service landscape and are therefore heavily regulated. Investors typically treat utilities as long-term holdings and use them to inject steady income in their portfolios.

Utilities typically offer investors stable and consistent dividends, coupled with less price volatility relative to the overall equity markets. Because of these facts, utilities tend to perform well during recessionary climates. Contrarily, utility stocks tend to fall out of favor with the market, during times of economic growth.