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Sectoral Performance in NSE

When we talk about Sectoral Performance in NSE. It is quite evident that if you do not know which sector is profitable at which time then the share market won’t help you to earn money. Hence it is important to understand which are the strong sectors and which are the weak sectors from time to time. It is simple to comprehend that if a particular sector is currently weak, it is not likely to remain so in the future. So investing in it can be profitable when the sector will turning around. On the other hand, If a sector is doing well or about to end the phase of a bullish market then getting out from that sector is the ideal path to be taken.

So In the following, we shall take a look at How to analyze any sector to understand its current situation. Not only that we will also discuss the Sectoral Performance in NSE or National Stock Exchange.

Sectoral Performance in NSE (Live)

Intraday Performance

Short Term Performance

FAQ about Sectoral Performance in NSE

What is the Sectoral Index?

Nifty index smartly separates different industries and makes an index out of that same sector-related companies. It is called the Sectoral Index. These indices provide summaries as well as benchmarking information for certain industries or sectors. It enables investors to compare a stock’s performance to that of various industries.

What are the very known sectors of Nifty?

Nifty Bank Index or Bank Nifty, Nifty Financial Services, Nifty FMCG Index, Nifty Healthcare Index, Nifty IT Index, Nifty Media Index, etc are some of the well-known Sectors to invest in.

Which sector is growing very fast in today’s Indian economy?

The health sector of India is growing very fast in today’s Indian economy. This is also due to the enhanced public demand for medicines in this covid 19 situation.

What is Sectoral Analysis?

Sectoral Analysis is a study of a particular industry’s economic and financial situation and prospects. An investor can use sectoral analysis to decide how well companies in that sector are projected to perform.

What is sectoral rotation?

Suppose you have put your money in IT Sector and also have earned profit from it. But when that stock starts its downtrend, you did nothing but hold the shares which left you with a big loss. Now understand whenever any sector starts its bearish run simply book your profit and put your money to a new sector that just has come out from its negative returns to the positive one. Rotating your money from a bearish sector to a bullish sector is called Sectoral Rotation.

What is Sectoral Performance?

Nifty deftly distinguishes different industries and creates an index comprised of companies from the same sector. It is the Sectoral Index. For specific industries or sectors, these indices give summaries as well as benchmarking data. It allows investors to compare the performance of a stock to that of other industries.

Suppose 10 IT companies enlisted in National Stock Exchange. It is not necessary that all those companies got listed in the same period of time. But all those companies are trading in the stock market. Hence all the companies belong to the same sector. So the stock exchange think to sum up all the companies and put a name of it, as Nifty IT Index. It shows an overall view of the It market in general.

How to see Sectoral Performance in NSE?

Sectoral Performance in NSE is presented on the official trading website of the National Stock Exchange. There are 14+kinds of sectors present in the NSE indices. If anyone wants an update about Nifty Bank, Nifty Financial, Nifty Auto Nifty FMCG, or any other sector, it is more likely to check out the sectoral indices of the website. In which you will find the Sectoral Performance of those indices. So in the following, we shall take a look at how you can find the website to search it out according to your preferences.

First, go to Google Chrome then write “nseindia.com”, and press “Enter”. As soon as you press the “Enter” button Chrome will take you to the official website of the National Stock Exchange.

Use this link to vise NSE India

Direct link to open NSE India

Just to make it easy for you I’m also providing you with a direct link to National Stock Exchange. In the above, there is a blue rectangle in which the direct link is provided. Just click on it and you will be on the website.

The sectoral performance in NSE

A page will appear on your PC or laptop which looks something like the above image. Now we shall click on “Market Data”. As soon as you click on it a lot of information regarding the market will appear on your screen. In which we will click on “Indices”. In the above picture, the market Data is presented in deep blue color. On the other hand, I have produced the Indices in light blue color as they are related to each other.

After clicking on the “Indices option” all the information related to indices will pop up on your screen. Which includes the sectoral indices. most of them are named after nifty such as Nifty auto, Nifty IT, etc.

The sectoral performance in nse

In the above, I have attached a similar image that will pop up on your screen when you will click on the Indices option.

Sector wise Performance in NSE

Many people get afraid to invest in a single share. As they believe if that stock does not perform well in the long run then it will be a loss-making decision for them. To avoid such a situation they most likely invest in sectors such as Pharma, Auto, Health, etc or in the sectoral mutual funds. In the long run, such sectors never let you down. Not only that it also helps to gain a lot of profit by doing options trading. But we also have to keep in mind that if you are a regular trader who likes to make a profit by doing swing trading or intraday trading Then it is important to keep track of the sectors daily.

If you want to invest in a particular stock then finding out the right one is the most important for you. First, select a sector that has turned into a bull market from bear market recently. After that select those stocks which are profitable among all. For that calculate the 30-days and 90-days return average. Now after all the calculations if you find the stock profitable then invest in it. But you have to keep in mind that it is for a long time. I shared this process for intraday traders. As it has just started its bullish trend.

Best sectors to invest in

Sectoral Persomences is a piece of important knowledge if you are an intraday trader. As it helps you to detect the best sector. When I am writing the post, the best sector is the Nifty Auto sector which is doing comparatively well among the other sectors of Nifty Indices. So in the following, I have discussed the indices which are having good Sectoral Performances in NSE

i) Nifty Realty Index

There are so many real estate companies listed on the National Stock Exchange. But exchange takes the best shares of this sector, calculates the average Sectoral Performance in NSE, then gives an overall view about that index. That is why if any investor wants to invest in this sector, they take a look at the Sectoral Performance in NSE of that index. Then they most likely invest in it. Usually, any investor takes a look at the returns of that sector. If it gave good returns then that index considered having a good Sectoral Performance in the NSE. Investors invest in that sectors. On the other hand, traders find out the best stock of that index and do intraday or swing trading. So that they don’t put their money on the best stock of that sector.

Stock wise Example

As of 27th January 2022, Nifty was trading weak. Nifty Realty Index was the weakest of all the sectoral indices. And, Godrej Properties Ltd and Indiabulls Real Estate Ltd were the weakest stock of the Nifty Realty Index. They are on their bearish trend. So let’s see how to earn money from it. The market is weak, the sector is weak and also the stock is going through a bearish trend. How to earn money from such a share by doing intraday trading will be discussed in the following.

So first put the chart on a 5min then add the stochastic indicator to it. Adjust the setting by changing the smooth section to 3 and remain the other two same as it is by default. If the momentum hits 80 then consider it as the best opportunity of short sell. As it suggests that the stock has been over-bought there is a possibility that the next move of the traders might be going to be is selling. So doing a short sell in such stock is the best option to do.

Short sell for intraday

As you can see the above chart of 27th January 2022 of Godrej Properties. If we take a look at the Stochastic indicator we shall see that at the end of the day, there are three red lines that formed because at that time the line was above 80. That suggests an overbought situation. It is the best time to do a short sell. Whenever the line hits 80 do selling and wait as soon as the line starts to come down word buy at that time. That is how you can earn an amount on an intraday basis.

Short sell for intraday

On, 27.01.2022 the Stochastics Indicator in Indiabulls Real Estate Ltd has also gone up to 80 twice. It means there is more than one chance of doing a short sell. Short selling possible in the stock whenever the stochastics touches the mark of 80 and starts to fall. Buy it back as soon as it goes below 20. This is the process to earn from it.

ii) Nifty Auto Index

Nifty Auto holds the best stocks in the Automobile Sector. The NIFTY Auto Index is intended to reflect the share market’s behavior and performance in the Automobiles sector. Automobiles such as 4 wheelers, Automobiles 2 & 3 wheelers, Auto Ancillaries, and Tyres are all represented in the index. This index contains 15 large-cap companies in the automobile sector. The current price of this index is 11,717.70 rupees. If we look from an average perspective we shall see that this sector always gives a good return. But if you are an intraday or swing trader then it is important to analyze every aspect of that index before investing in that.

Suppose that sector is not doing well for the last few days. That means it is going through a bearish phase. But you still invest in it. Expecting that now in future this sector will earn you profit. So investing your money keeping that in mind is an important lesson that Sectoral Performance thought us.

If we look upon it as a sectoral investment then it might be a golden opportunity for you. As the market is in a bearish phase it does not mean it will remain the same for the next few months. Possibilities are that the sector will soon start its bullish trend.

The sectoral performance of NSE

iii) Nifty PSU Bank Index

The Indian government owns the majority of these banks’ shares. The Indian government’s Ministry of Finance also owned more than half of the stock. These shares were also owned by India’s various state governments. It comprises all of India’s small- and large-cap banks. Such stocks are coming under the Nifty PSU Bank Index. 12 banks come under this index. If we take a look at the average refund of 30 days and 90days in a combined manner then we will find that it has provided the return of 8.09%.

As we all know investing in such sectors is profitable always. Because its Sectoral Performance in NSE is quite promising. As it is providing approx 8% of return so there is a chance if you hold this stock it will help you to earn profit.

iv) Nifty Media

This is an underrated index. But if we observe closely then we will see that this sector is performing well in the NSE for the past few months. The current price of this sector is 2228.25 rupees. This sector covers all the listed stocks related to entertainment and media. But only takes the best ten stocks of media and enlist them in the Nifty Media sector. That is how you get an overall view of this index. This sector has given a return of 6.98% on average in the past 30 to 90 days.

v) Nifty Metal

As we all understood by the name of this Secor covers the metal industries such as steel, copper, iron, etc. There are many big-cap shares that deal under this sector. So in this sector, there are 15 stocks that are enlisted to form the Nifty Metal index. The average return on this sector for the last 30 to 90 days is 5.68%.

vi) Nifty IT Index

It helps to determine the overall performance of the best IT sector’s shares which are included in the Nifty IT index. As we all know Nifty IT index contains the top ten companies in the IT industry. IT infrastructure, IT education, software training, telecommunication service, networking infrastructure, software development, hardware manufacturers, etc all sector comes under this sector. The current price of this index is 17,757 rupees.

Just because a sector is giving good returns does not mean its bearish move won’t arrive in the near. Whenever the bearish move starts of that sectors get out of that marker. Do not hold that index stocks for longer because if the bearish pattern starts it is better to leave that sector by booking your profit and investing in a new one.

Chart analysis for Intraday trading

Nifty was weak, and the weakest stocks of the Nifty It sector are Coforge Ltd and MindTree Ltd. As of 27th January 2022, I observe both the charts of the stocks. But I fount that MindTree has given the opportunity of doing short sell twice.

Sectoral Performance NSE intraday

But on the other hand, Coforge Ltd mostly went sideways. It does not hit the 80 mark to short sell. So there was no chance of doing a short sell as an intraday trader or buying and holding the stock as an investor.

Sectoral performance nse for intraday

Best Returns according to Sectoral Performance in NSE

So in the following, I have presented you the chart of the Best Returns according to Sectoral Performance in NSE till the date of 21st of January 2022. In this chart, we have calculated the 30day and 90 days return average and put it in a form of a chart so that it won’t be hard for you to understand.

Sectoral Performances of NSE Indices

Sl.no.IndexAverage % Change
1.Nifty Realty9.72%
2.Nifty Auto9.17%
3.Nifty PSU Bank8.09%
4.Nifty Media6.98%
5.Nifty Metal5.68%
6.Nifty IT1.33%
7.NIFTY 501.17%
8.Nifty Bank0.93%
9.Nifty Financial Services-0.94%
10.Nifty Private Bank-1.31%
11.Nifty Pharma-3.93%
12.Nifty FMCG-6.95%

Low Sectors to Avoid

In the following, I have listed the sectors in ascending orders. That means the top performing sectors are at the top then comes the comparatively weaker ones. You might think if these sectors are not up to the mark to earn profit. Then what is the need to know about such indices? So let me tell you that such indexes are also profitable if you know how to use them.

i) Nifty FMCG Index

FMCG means Fast Moving Consumer Goods. It is a fast-growing market that contains 15 stocks in this index. FMCG index helps to detect the average performance of FMCG shares, such as Hindustan Unilever Limited (HUL), Nestlé India, ITC Limited, etc. Every Indian widely know about the companies. Because this company made products which are used by the Indian on a day to day basis. The current price of this index is 37,175.00 rupees. But if we take a look at its return it is not that satisfying. Because in the last 90-days and 30-days combine average is -6.95%.

That means if you are planning to buy this index and do holding for the next few months at this point, I won’t say that is a good idea. Rather wait for a little and keep your eye on the sector. Whenever the sector starts doing well, means whenever the sector comes out from negative to positive returns then invest in the sector. Because as we can see by the trend if a sector comes out from the negative returns its bullish trend has started from there. So as soon as we put our money in that sector possibilities are that we shall earn good returns from there.

How to earn profit from a bearish index

As we all know bearish indices and stocks under them aren’t meant to earn profit. If you thinking the same. Then I won’t say you are wrong because if you buy bearish stock by thinking of holding it. Then it is quite uncertain about that index to perform well in the near future. Here comes the ideology of doing short sell. As we can see Nifty FNCG is falling so start your trade by selling it first. Then at the end of the day you can simply buy it. This technic is called short sell. That is how you can earn from a bearish index as well.

ii) Nifty Pharma Index

This sector covers the pharma industries of India which are listed in the NSE. It took the best shares of the pharma industries to built the Nifty Pharma Index. Usually, this index helps us to understand the overall scenario of the market. That is why someone wants to invest in any of the stock that is related to the pharma industry. That person takes a look at the Nifty Pharma Index before investing in it. As the Sectoral Performance in NSE of this index helps to understand whether this sector is either profitable for that person or not. Currently, the price of this sector is 13,243.05 rupees. This sector is also a conservative sector. Generally it performs better when overall market is weak.

iii) Nifty Private Bank Index

The Nifty Private Bank Index helps to determine the overall performance of the shares of the private banks that are listed in the NSE. The Sectoral Performance of the private banks is very low nowadays so it might be a risky sector for you. Private banks are those that are authorized by the government but not a takeover on it. The current price of this index is 18,929.55 rupee. This sector contains ten private banks shares.

iv) Nifty Financial Services Index

The Nifty Financial Services Index covers the Indian financial market. It comprises banks, financial institutions, housing finance, insurance firms, and other financial services firms to determine the love of all Sectoral Performance. It contains 20 shares of different industries. The current price of this index is 18,213.50 rupees. These shares are summarised in the form of the Nifty Financial Services sector. If this sector performs well in the market it helps you to gain a good amount of profit.

Futures on the Nifty Financial Services Index is very important to understand as it helps you to earn from the market. The Nifty Financial Services Index would be used as the basis for the contract. The underlying index, market lot, and contract maturity date are all defined by the NSE when it comes to futures contracts.

v) Nifty Bank Index

The Bank Nifty (also known as the Nifty Bank) is a stock market index that tracks the banking industry. It helps to track the Sectoral Performance in the NSE of the banking shares. Stocks with the largest market capitalization and liquidity quotient make up this group. This index includes both private and public sector banking equities. There are 12 stocks in total. That suggests this sector has 12 banking shares listed in it. The price of the Nifty Bank index is 37,965.90 rupees. Earning a good profit from such a sector is a bit risky sometimes as we have to keep track of how the stock is moving on a daily basis.

Bank Nifty index is very popular among the traders. Heavy trading is done on this index and the stocks in it. Assume the market opens with a gap up, the bank nifty gap trading strategy is ideal. When you notice the market opening with a gap up, you can trade the gap fade to earn profits

Conclusion

At the end of the writing, we can see that If you put money on the best return giving stocks of the best return providing sectors, then finding out the right time to get out from the market is very important. But there are also ways which you can use to earn profit from the low return giving sectors, such as short sell. If a sector is not doing well then find out the best stocks of that sector calculate its average return amount and then think whether you want to invest in that stock by the time or you will wait for the bullish trend of that sector.

The Sectoral Performance in NSE helps to determine the average returns of different indices which can be used to understand the present situation of that index. If you handle the indices smartly then you can earn from both the best and the worse performing sectors of NSE.