Indian markets at a crossroads: Banking loses steam, IT and metals eye a comeback
According to Share.Market's weekly Sector Rotation Report, which analyses sectoral movements relative to the Nifty 50 benchmark over a six-week period from April 4 to May 16, several sectors are showing signs of transition.
Banking, private banking, and financial services indices have remained in the leading quadrant, outperforming the broader market with strong relative strength and momentum. However, recent trends show a decline in both, signaling that this leadership may not last much longer. Analysts suggest that while fundamentals remain solid, valuations and macro headwinds could be prompting investors to rotate out of these heavyweights.
The IT sector, which had been underperforming, is now showing renewed strength. Rising momentum and improving relative performance indicate growing investor confidence, possibly driven by global tech demand and cost optimization initiatives.
Metal stocks, while still in the lagging quadrant, have shown a modest improvement in momentum. While early, this may signal the beginning of a bottoming-out phase, especially if global commodity cycles turn supportive.
The auto sector remains in the lagging zone but is witnessing a gradual pickup in momentum. Analysts interpret this as early signs of a cyclical rebound, though visibility remains low. In contrast, the pharma sector has slipped deeper into underperformance, moving from weakening to lagging with falling momentum and strength—indicating structural pressures may persist.
Once seen as safe havens, FMCG and healthcare sectors have also drifted into the lagging quadrant. Share.Market notes that these sectors have failed to sustain prior momentum, likely reflecting stretched valuations and tepid earnings growth.
As of mid-May, the sectoral rotation paints a picture of a market in transition. 'Investors should watch out for emerging leadership from beaten-down sectors showing signs of revival. The IT and metal sectors deserve close attention, especially if momentum sustains,' the report said.
The Relative Rotation Graph (RRG) framework used in the analysis is particularly helpful in identifying turning points, enabling investors to shift focus ahead of major sector rallies. Experts suggest that success in the current environment will depend on adaptability and timely sector rotation.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Small-cap stock under ₹50 jumps 8% despite volatility in the Indian stock market
Stock Market Today: Small-cap stock under ₹ 50 gained 8% in the intraday trades on Wednesday despite volatility in the Indian stock market. Check details about Mercury EV-Tech here Mercury EV-Tech share price opened at ₹ 48 on the BSE on Wednesday. At the time of opening, the Mercury EV-Tech share price was more than 5% higher compared to the previous day's closing price of ₹ 45.56 on the BSE. The Mercury EV-Tech share price thereafter gained further to intraday highs of ₹ 49.60, which meant intraday gains of almost 9% for the small-cap stock under ₹ 50, the Mercury EV-Tech share price. The gains for small-cap stock under ₹ 50 Mercury EV-Tech were on a day when the Indian stock market remained weak and the benchmark Sensex remained range-bound. The small-cap stock under ₹ 50, Mercury EV-Tech, had dipped to 52-week lows of ₹ 45 on the Tuesday; however, it is seeing a sharp rebound. The small-cap stock under ₹ 50, Mercury EV-Tech, though it may be down 50% year to date, is still up 8090% in the last 5 years. The small-cap stock under ₹ 50, Mercury EV-Tech, with multifold gains, has given multibagger returns to the investors. Mercury EV-Tech had recently reported Q1 2025 net profits at ₹ 1.63 crore at the consolidated level. This marked more than threefold gains in the net profit from ₹ 0.48 crore in the year-ago quarter. The revenue from operations for Mercury EV-Tech at ₹ 22.56 crore during the first quarter of fiscal year 2025-2026, or Q1FY26, marked a more than 5-fold rise compared to 3.87 crore in the year-ago quarter. Mercury Ev-Tech Ltd., incorporated in 1986, is in the business of manufacturing and trading electric cars and other related renewable energy goods. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
an hour ago
- Business Standard
Indices edge lower in early trade; Nifty below 24,950 mark; VIX rises 1.78%
The domestic equity indices traded with minor losses in early trade, snapping a four-day winning streak, as weak cues from Asian and US markets dampened investor sentiment. The Nifty traded below the 24,950 mark. IT and consumer durables shares advanced while all other indices traded in red. At 09:30 IST, the barometer index, the S&P BSE Sensex, fell 121.02 points or 0.15% to 81,529.48. The Nifty 50 index shed 45.05 points or 0.18% to 24,935.60. In the broader market, the S&P BSE Mid-Cap index shed 0.16% and the S&P BSE Small-Cap index fell 0.17%. The market breadth was positive. On the BSE, 1,558 shares rose and 1,289 shares fell. A total of 186 shares were unchanged. Foreign portfolio investors (FPIs) sold shares worth Rs 634.26 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,261.06 crore in the Indian equity market on 19 August 2025, provisional data showed. Stocks in Spotlight: Lloyds Metals and Energy added 2.85% after the company has emerged successful bidder for the Tandsi - III and Tandsi - III Extension coking coal mine, securing the project with a premium of 10.5%. Located on the Madhya PradeshMaharashtra border, approximately 400 kilometers from Ghugus, the mine spans an area of around 338 hectares and holds estimated total reserves of 23 million metric tonnes. GMR Power & Urban Infra rose 1.51% after the companys board is scheduled to meet on 22 August 2025, to consider raising funds upto Rs 3,000 crore in one or more tranches through issue of securities including qualified institutions placement (QIP) and/or foreign currency convertible bonds(FCCBs) and/or any other securities. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 0.43% to 6.512 from the previous close of 6.512. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.1000 compared with its close of 87.1300 during the previous trading session. MCX Gold futures for 3 October 2025 settlement shed 0.07% to Rs 98,628. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 98.35. The United States 10-year bond yield rose 0.16% to 4.309. In the commodities market, Brent crude for October 2025 settlement rose 7 cent or 0.11% to $65.86 a barrel. Global Markets: Markets in Asia traded lower on Wednesday, weighed down by a tech-led selloff on Wall Street recorded yesterday. Japans exports dropped 2.6% year over year in July, notching their steepest drop in over four years. The fall was sharper than the widely expected 2.1% contraction and compared to the 0.5% drop seen in June. Meanwhile, China kept benchmark lending rates unchanged for the third consecutive month on Wednesday, as authorities signalled they are in no rush to deliver monetary stimulus despite a string of recent disappointing economic data. The one-year loan prime rate (LPR) was kept at 3.0%, while the five-year LPR was unchanged at 3.5%. Overnight stateside, the S&P 500 pulled back, weighed down by Nvidia shares and a broad decline in technology stocks. The broad market S&P 500 lost 0.59% and closed at 6,411.37, while the Nasdaq Composite fell 1.46% to settle at 21,314.95. The Dow Jones Industrial Average added 10.45 points, or 0.02%, and ended at 44,922.27. The 30-stock index touched a fresh record high during the session.
&w=3840&q=100)
Business Standard
2 hours ago
- Business Standard
Globe Civil Projects shares gain 5% on ₹222 crore order win; details here
Shares of Globe Civil Projects surged nearly 5 per cent on Wednesday after it received a ₹222.2 crore order for the construction of an International Cricket Stadium in Haryana. The civil construction major's stock rose as much as 4.9 per cent during the day to ₹82.4 per share, the biggest intraday rise since August 8 this year. The stock pared gains to trade 1.6 per cent higher at ₹79.8 apiece, compared to a 0.13 per cent advance in Nifty 50 as of 10:48 AM. Shares of the company snapped a two-day losing streak but have been range-bound since the beginning of August. The shares, which debuted on the exchanges on July 1 this year, have declined 10 per cent since listing. Globe Civil Projects has a total market capitalisation of ₹481.34 crore. Track LIVE Stock Market Updates Here Globe Civil Projects wins ₹222 crore order The company secured a major contract worth ₹222.2 crore from the Haryana Cricket Association for the construction of an international cricket stadium at Lohat in Jhajjar district, Haryana. The project is slated for completion within 24 months. The scope of work involves execution of the stadium on a bill-of-quantities (BOQ) basis, underscoring the company's growing role in developing large-scale infrastructure facilities across the country. The deal also boosts its order book and marks a strategic foray into sports infrastructure. 'This project marks our entry into the sports infrastructure segment and reflects the confidence of our stakeholders in our ability to deliver large-scale assignments with precision and reliability,' said Ved Prakash Khurana, chairman and whole-time director of Globe Civil Projects. Last month, the company announced the receipt of an order from NBCC (India) Ltd. valued at ₹172.99 crore. The contract involved the development of infrastructure and buildings for the Central University of Punjab at Village Ghudda in Bathinda, Punjab, on an Engineering, Procurement, and Construction (EPC) basis. About Globe Civil Projects Globe Civil Projects Limited, headquartered in New Delhi, is an integrated Engineering, Procurement, and Construction (EPC) company involved in executing a wide range of infrastructure and non-infrastructure projects across India. With operations spanning eleven states, the company has established a solid track record in delivering projects across Transport & Logistics, Social & Commercial Infrastructure, and Premium Residential and Commercial Developments. Traditionally known for its expertise in constructing railway infrastructure and educational institution buildings, Globe Civil Projects has strategically diversified into more complex and specialised segments, including railway bridges, elevated railway terminals, airport terminals, and hospitals.
