This question always comes across one way or the other.
While there is no fixed way of going about it, this is how I analyze and compare sectors.
Finding a sector and analyzing it, is a very tiring job for a beginner.
One gets lost while doing the research.
Here are three (3) simple steps to help you get started-
➢ Identify cyclical and non-cyclical sectors. I
Cyclical sectors are those whose demand changes with the business cycle like automobiles, aviation, restaurants, and non-cyclical are those whose demand will stay forever like FMCG, pharma, etc.
➢ Study government initiatives in these sectors
You can use https://www.ibef.org/ to check out govt. initiative.
➢ Do Financial Analysis
Every sector has a different style of business and different expenses depending upon nature. You should select either of them like in IT we check attrition rate as a critical parameter.
I personally am very bullish on Banking, Insurance, and Automobiles.
What sectors excite you? Let’s discuss this in the comment box.