Relative Returns Weekly Update - 15/01/2023
Trends Observed -
- Sectors continuing momentum in the past 6 weeks are -
- Automobile, Auto
- Banking, Finance
- General Industries
- Textiles and Aparrels
- Sectors where momentum is seen to increase -
- Cement & Construction
- Consumer Durables
- Metal & Mining
- Sectors where momentum is slowing down -
- Chemicals
- FMCG
- Hotels
Sector In Discussion -
- Consumer durables -
- It has been one of the beaten sectors for the past 2 years, as a question of discretionary spending came to light. In the near future, this is a sector that can show outperformance as earnings start regaining ground and inflationary pressures ease.
- This sector specifically in India caters majority to the local demand hence a global slowdown can have an impact on the supply side but not on the demand side.
- PLIs, Private player initiatives, cheap labor, and favorable policies can be the trigger for the next rally in this sector.
**Not a recommendation - just data-driven insights.