Sector Rotation 2026

Where Money Is Moving

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

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

Capex Push

Order books are at record highs. Government and private sector spending is flowing into infrastructure. Defense, railways, and road projects are leading.

Metals Are Making A Comeback

- China's stimulus creating demand - India's infrastructure leads - Steel & aluminum prices rising - Cyclical recovery gaining steam

Auto Stocks

And premium segments continue to outperform the mass market.

Both 2-wheelers and passenger vehicles are showing strength.

Not Every Sector Is Winning

- 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?

StockEdge gives you: ✔ Live sector heatmaps ✔ Momentum vs fundamentals ✔ Early rotation signals