2 weeks ago

Experts Decode Sector Cycles and Share 2026 Investment Lessons

Experts Decode Sector Cycles and Share 2026 Investment Lessons
Sector cycles: Experts decode past trends — and share key lessons for investors to make smarter moves in 2026 · livemint.com

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.

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

Sources

Related news