Which market sector is performing the best
Aviation , 0. Banks 3,, Bank - Private 2,, Capital Goods , 0. Chemicals 1,, Carbon Black 12, Construction Materials , Cement , Consumer Durables , 0. Air Conditioners 68, 0. Diversified , Electricals 76, 0. Cables 67, 0. ETF 25, ETF 24, Thu, Nov 11th, Help. Stocks Sector Finder. Symbol not found. Sectors containing [[ data. No sectors found for [[ data.
Log In Sign Up. Stocks Market Pulse. ETFs Market Pulse. Candlestick Patterns. Options Market Pulse. Upcoming Earnings Stocks by Sector. Futures Market Pulse. Trading Guide Historical Performance. Iron and steel make up a core component for the real estate sector and likewise, demand for metals is set to continue given strong growth expectations for the residential and commercial building industry.
In fact, Brijesh Bhatia, senior research analyst at Equitymaster, had called it the sector of the year at the start of Brijesh is yet bullish on the sector. He believes metal stocks are all set to kick off the next leg of their rally. Watch this video for more. The Covid pandemic added a spark to existing trends as people shopped from home, sought entertainment from OTT platforms.
IT companies have benefitted from this trend. Brokerage houses are bullish on IT stocks opining reasons as strong demand environment, improving visibility, sustained margins, and improving free cash flow.
Not only have IT companies seen some of their best results in the June quarter but they are also facing an uptick in attrition rates due to a war for talent in the sector and as lateral hires can put pressure on company margins this has led to increased hiring of new graduates.
As per The Economic Times, the IT sector is expected to witness a five-year mega growth cycle due to the speed at which American enterprises transform themselves digitally. Here's what Tanushree Banerjee, Co-head of Research at Equitymaster, has to say about the realty sector. The biggest drag on real estate players is high debt and with interest rates moving up, investors need to be wary of realty companies with the tendency to pile up debt and dines with poor cash flows.
Also, this is a sector where investors have to be very careful about the management quality. Poor accounting and lack of corporate governance has been the reason for many large realty companies performing poorly in the past. After all, Walmart and Costco are likely to sell more TVs and other discretionary products during boom times.
So, despite its rather low-growth reputation, the consumer staples sector is one of just four sectors that has outperformed the market since the other three being tech, consumer discretionary, and healthcare. Despite being the best performing sector in , , and , the energy sector has been the worst-performing sector overall since High oil and gas supply coupled with low demand brought the energy industry to its knees in The long-term headwinds are concerning, too.
Renewables, namely solar , have come down in cost. Oil and gas is capital intensive high debt. There's global competition -- and with it, geopolitical risk.
And of course, there are environmental concerns. There are plenty of terrible energy stocks, but reduced share prices have also paved the way for opportunities. For investors willing to accept a little bit more risk, the energy sector could be a great place to hunt for value in But given high valuations in the tech and consumer discretionary sectors, the consumer staples sector seems to have the best mix of risk and reward in Consumer staples will likely outperform a bear market.
And contrary to popular belief, consumer staples have proven they outperform the market over the long term, too. With the stock market near an all-time high, it seems best to ease into with caution. However, a low-interest rate environment and economic stimulus could very well result in another great year for stocks.
Keeping some cash on the sidelines will allow you to take advantage of discounted prices during a crash, where it could serve you well to snag companies with attractive long-term prospects from a variety of sectors.
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