How to conduct a SECTORAL Analysis? (3 quick steps)

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.

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➢ 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.

Yours Truly
Goela

Source: https://www.linkedin.com/posts/harsh-goela-stock-markets_goelasf-stockmarket-analysis-activity-6972448608281329664-y_Jk?utm_source=share&utm_medium=member_desktop