Sector rotation analysis for Indian markets
Money moves between sectors as the economic cycle and market mood change. Sector rotation analysis shows which groups are gaining strength and which are fading, so you can focus on stocks in areas where the tide is rising.
Open the free scannerThe four quadrants
Each sector is placed on a map by its relative strength against the market and the direction of that strength:
- Leading: strong and getting stronger.
- Weakening: still strong, but momentum is fading.
- Lagging: weak and getting weaker.
- Improving: still weak, but turning up.
Sectors typically travel around this cycle clockwise: improving, leading, weakening, lagging, and back.
Sectors, industries and themes
The scanner groups stocks by sector and by industry, and also by themes such as data centres, defence or cables and wires, which cut across official sector lines. Each theme is scored on the median RS of its stocks, how many trade above their 50-day average (breadth) and how many have strong RS on both 3- and 6-month windows (persistence).
Why breadth and persistence matter
A sector can look strong because two stocks are surging. Breadth and persistence tell you whether the whole group is participating, which is a better sign of a durable move than a single outlier.
Testing rotation honestly
The Sector Rotation Backtest ranks themes at each month-end using only data available on that day, then compares the result with official NSE thematic indices. Theme lists are today’s, which can flatter results, so the tool shows the index comparison as a check on hindsight.
Frequently asked questions
What is sector rotation?
It is the movement of investment money from one sector to another as conditions change. Analysts track it to see which areas of the market are leading.
How often is the data updated?
The scanner refreshes after each market close on trading days.
Can I see themes as well as official sectors?
Yes. Themes group stocks across sectors, for example by a common business driver, and are ranked in the same way.
Is rotation analysis a timing signal?
No. It describes what has been strong. It does not predict what will happen next.