NSE Sector Rotation Explained

Sector rotation is the movement of market leadership from one group of stocks to another. In India, leadership may shift between banking, IT, pharma, FMCG, energy, metals, auto, realty, and infrastructure depending on rates, earnings, currency, commodities, and sentiment.

Why Sector Rotation Matters

A stock move is more meaningful when its whole sector is participating. If one bank is up but the banking sector is weak, the move may be company-specific. If many banks are up together, the market may be rewarding the whole sector.