🗺️ Markets — Sector Heatmap

The Two Visual Encodings: Size and Colour

Every sector tile encodes exactly two pieces of information: size (market cap weight) and colour (performance metric). Reading both together gives you the full picture in seconds.

Above: illustrative example. Financial Services is the widest tile — largest NSE market cap. Realty is narrow — smaller listed universe.

Tile Size — Market Cap Weight

Width ranges from 120px (minimum) to 320px (maximum), scaled to the square root of the sector's market cap fraction. The square-root scaling is intentional — it prevents the two largest sectors (Financial Services and IT) from dominating the entire visual. Without it, everything else would be too small to read.

Each tile also shows the sector's total market cap and company count directly — so even without comparing sizes, you can read the exact numbers.

Tile Colour — The Selected Metric

The colour scale for CAGR metrics:

The Four Metric Toggles

1Y Price CAGR (Default)

The annualised price return of the sector over the past 12 months. This is the most volatile metric — it reflects current market sentiment, recent earnings surprises, and sector-specific news. Use 1Y to identify what is working right now and what is in a short-term correction.

3Y Price CAGR

Annualised price return over 3 years. This timeframe filters out most noise and reflects medium-term structural trends — sector earnings cycles, capacity expansions, regulatory changes. A sector that has compounded at 20%+ over 3 years has broad participation from multiple companies, not just one or two outliers.

5Y Price CAGR

Annualised return over 5 years. This is the most reliable metric for identifying structural long-term winners — sectors where durable competitive advantages, favourable policies, or demographic tailwinds have driven sustained outperformance across at least one full bull-bear cycle.

Avg Health Score

The average of Finmagine's fundamental health score (0–10) across all companies in the sector. The health score is built from financial ratios including ROCE, ROE, debt levels, profit consistency, and earnings quality. Use this metric to find sectors with a high density of fundamentally sound businesses — useful when you want to invest for quality rather than chasing recent momentum.

The health score colour scale: dark green = ≥7/10, muted green = 5–7, dark red = <3. A sector scoring 7+ has most of its companies meeting strong fundamental criteria. A sector scoring below 3 is dominated by loss-making or heavily indebted businesses.

📊 Sector Summary Table

Below the tile heatmap, every sector appears as a row in a sortable table. The table exposes all four metrics at once — useful when you want to rank sectors precisely rather than visually scanning tiles.

Illustrative data. Click any column header (↕) to sort. Default: Market Cap descending.

Key Sorting Strategies

• Sort by 3Y CAGR ↓: Sectors with sustained multi-year outperformance — the most reliable quality filter for sector selection.
• Sort by 1Y CAGR ↓: Current momentum leaders — useful for identifying near-term opportunities but requires more scrutiny of whether the move has fundamental backing.
• Sort by Health Score ↓: Sectors with the highest density of fundamentally strong companies — a quality filter independent of recent price performance.
• Sort by # Companies ↓: Larger sectors have more stock selection opportunities within them. Smaller sectors may have concentrated exposure to 2–3 large companies.

Clicking Through to the Screener

Every sector tile is a link. Clicking it opens the Screener pre-filtered for that sector — you land directly on a list of all companies in that sector with Finmagine's full fundamental data. From there:

1. Apply quality filters — ROCE > 15%, D/E < 0.5, Revenue Growth > 12%
2. Sort by Score — Finmagine's composite score ranks by overall fundamental health
3. Open individual stocks — click any company row to go to the full stock page

Sector Rotation Signals

The heatmap is most powerful when you compare the 1Y toggle against the 3Y toggle for the same session. Sectors where the colour changes significantly between time periods are undergoing rotation:

• Green on 1Y, red on 3Y: Recent reversal after prolonged underperformance — early stage rotation in. These sectors are worth watching for sustained follow-through.
• Red on 1Y, green on 3Y: Underperforming recently despite strong long-term track record — possible accumulation opportunity for patient investors.
• Green on both 1Y and 3Y: Sustained momentum. Often means earnings upgrades across the sector. The safest setup for new positions.
• Red on both 1Y and 3Y: Sector in a prolonged structural decline or going through a deep cycle. High risk — requires specific bottom-up thesis to invest here.

Related Markets Guides

• Markets Hub — overview of all 11 tabs and the top-down workflow
• Overview Tab — India indices, FII/DII, global markets, breadth and upcoming events