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Sector rotation explained — find which part of the market money is flowing into right now
The Trending Sectors tab answers a deceptively simple question: which sectors are most of the market's stocks actually making money in right now? Not which sector index is highest — but in which sector are the most individual stocks showing positive 1-year returns. This cross-sectional view identifies true sector leadership vs index-driven illusions.
The Trending Sectors tab gives a cross-sectional view of the Indian market: for each NSE sector, it computes what fraction of constituent stocks have generated a positive 1-year price return. This is a participation metric — it tells you how broad a sector's recovery or decline is, rather than just whether the sector index is up or down.
| # | Sector | % Trending ▼ | Trending / Total | All Stocks | Avg 1Y CAGR |
|---|---|---|---|---|---|
| 1 | Capital Goods | 82.4% | 28 / 34 | 38 | +31.2% |
| 2 | IT | 74.0% | 37 / 50 | 54 | +22.8% |
| 3 | Pharma | 58.3% | 35 / 60 | 67 | +14.5% |
| 4 | Metals & Mining | 44.0% | 22 / 50 | 56 | −4.1% |
| 5 | FMCG | 34.0% | 17 / 50 | 53 | −8.3% |
In this example, Capital Goods leads (82.4% of its stocks are positive over 1 year with an average CAGR of +31.2%). FMCG is in broad decline — only 34% of its stocks are positive and the average CAGR is negative. This immediately tells you where to focus stock research (Capital Goods / IT) and what to be cautious about (FMCG / Metals).
| Column | What It Shows | Best Used For |
|---|---|---|
| # | Rank by current sort column (default: % Trending) | Quick visual ordering of sector leadership |
| Sector | NSE sector name. Clickable — opens Screener pre-filtered to sector. | Jump directly to finding stocks in the leading sector |
| % Trending | % of sector stocks with positive 1Y return. Colour-coded + mini bar. Green ≥70%, Amber 40–70%, Red <40%. | Identify sectors with broad participation |
| Trending / Total | Raw count: stocks with positive 1Y return / stocks with available data | Understand the absolute depth of the sector; small sectors can have misleading %s |
| All Stocks | Total stocks in the sector in Finmagine's database (including those without 1Y data) | Context: a sector with 38 stocks is more concentrated than one with 120 |
| Avg 1Y CAGR | Average 1-year price return across all sector stocks with data. Green = positive, red = negative. | Measure sector return intensity alongside participation breadth |
The most powerful insight in the Trending Sectors tab comes from comparing % Trending with Avg 1Y CAGR within the same sector. When these two metrics diverge, it often signals sector rotation in progress.
Example: FMCG with 75% Trending but Avg CAGR of only +5%. Most stocks are positive (broad participation) but the returns are modest. This suggests the sector has already delivered its recovery — it's broadly up but not generating excitement. Momentum chasers may start rotating out to higher-return sectors.
Example: a sector with 35% Trending but Avg CAGR of +28%. Only a third of stocks are positive, but those that are have returned exceptionally well. This often indicates early-stage sector rotation — a few leading stocks are breaking out, but the move hasn't broadened to most of the sector yet. This is the pattern to watch: check the Screener for those few leading stocks, and monitor whether % Trending starts climbing in subsequent weeks.
The top 2–3 sectors in the default sort are where the most stocks are generating positive 1-year returns. Note whether they are green (≥70%) or amber (40–70%) — green sectors have broader participation.
Open the Heatmap tab and verify: are these sectors green in the 1Y/3Y/5Y CAGR view? If the Trending Sectors tab and the Heatmap agree on the same top sectors, that's a high-conviction signal about market leadership.
The Screener opens pre-filtered to your chosen sector. Add quality filters: ROCE ≥ 15%, OPM ≥ 15%, D/E ≤ 0.5 (or whatever your criteria are). This narrows the sector's stocks to only the fundamentally strong ones.
Click each candidate from the Screener results to view their full stock analysis page — financials, valuation history, AI Advisor templates, momentum signals, and more. Confirm whether the fundamentals justify the trend.
See which sectors are leading the market right now:
Open Trending Sectors Tab ↗