When one sector rallies, another often cools off. This natural shift is called sector rotation and it's happening right now in Indian markets.
Understanding Rotation = Better Timing
Nifty and Sensex are at new highs, but the gains aren't evenly spread. A handful of sectors are driving the rally, while former leaders are taking a back seat.
PSU banks continue to outperform, backed by strong fundamentals: - Credit growth at 15%+ - NPAs at multi-year lows - Government support remains firm - Many up 30-50% year-to-date
Order books are at record highs. Government and private sector spending is flowing into infrastructure. Defense, railways, and road projects are leading.
- China's stimulus creating demand - India's infrastructure leads - Steel & aluminum prices rising - Cyclical recovery gaining steam
And premium segments continue to outperform the mass market.
Both 2-wheelers and passenger vehicles are showing strength.
- IT: Demand slowdown + pricing concerns - FMCG: Recovering after weak volumes in 2025 - Pharma: Export headwinds persist The market is clearly shifting toward growth over safety at the moment.
Want to spot the next rotation before it happens?