2 weeks ago
Experts Decode Sector Cycles and Share 2026 Investment Lessons
The stock market is made of many groups of companies, called sectors, like technology, banking, and medicine.
Sometimes a sector becomes popular and grows quickly, and other times it falls out of favor.
Experts studied ten years of data to understand how sectors change popularity.
They found that no sector stays the most popular for long, usually only two or three years.
Media was unpopular for nearly eight years, the longest of all the sectors.
Technology, FMCG (food and drink), and banking often appeared on the unpopular list.
Real estate, metals, power, and medicine were often among the best performers.
Being unpopular doesn't automatically make a sector a good deal, experts warn.
A sector only becomes a smart buy when it shows real signs of recovery, like rising profits.
So experts say investors shouldn't keep money in one sector forever and should review their choices regularly.
Stock market leadership is never permanent, according to sector performance data spanning 2017 to 2026.
Media was the most out-of-favour sector, staying unloved for nearly eight of the ten years studied.
Realty, metals, power and pharma frequently ranked among top performers, while PSU banks made a notable comeback in 2022 and 2025.
IT, FMCG and banking appeared multiple times on the out-of-favour list, and by 2026 the broader bank index moved back out of favour.
Experts call IT and FMCG attractive in 2026 (trading 33.6% and 22.8% below five-year average P/E) and flag metals (64.6% above) as a sector to avoid.
- Who
- Market analysts Mayank Jain of Share.Market by PhonePe and Tanvi Kanchan of Anand Rathi Shares & Stock Brokers.
- What
- An expert analysis of how sectors move in and out of favour, with lessons for investors picking sectoral funds in 2026.
- Where
- The stock market context of India, indicated by references to PSU banks, RERA-related realty consolidation and Indian brokerage firms.
- When
- Based on track performance data as of July 2026 covering the period 2017 to 2026.
- Why
- To help investors understand where a sector sits in its cycle and avoid value traps when making sectoral fund bets.
Key facts
- Data source
- Bandhan Contra Fund NFO presentation
- Period studied
- 2017 to 2026 (data as of July 2026)
- Most out-of-favour sector
- Media (nearly 8 consecutive years)
- Frequent top performers
- Realty, metals, power, pharma; PSU banks in recovery phase
- Attractive sectors for 2026
- IT, FMCG, finance, infrastructure
- IT and FMCG valuations
- 33.6% and 22.8% below five-year average P/E
- Metals valuation
- 64.6% above five-year average P/E after 28.5% one-year gain
- Suggested sector holding period
- 12–24 months
Quotes
Tanvi Kanchan
Associate Director at Anand Rathi Shares & Stock Brokers
“"Almost no sector holds a top‑5 in‑favour position for more than 2‑3 consecutive years, which argues against buy‑and‑hold sector bets and calls for periodic rebalancing."”
livemint.com
“"media remained out of favour more often than any other group, staying unloved for nearly eight consecutive years out of the ten-year period studied."”
livemint.com









