Analysis of some important sectors in short

1. IT Sector: Due to strong rupee, earnings growth of IT companies has slowed down and hence, leading IT scripts have been underperforming. Since, rupee is unlikely to weaken in near future, IT companies will not report outstanding growth

2. Automobile sector: This sector is already witnessing slowdown in growth. Further, rising metal prices will not allow big profit growth and hence, valuations of this sector are not compelling anymore. Further, no sharp growth is expected in this sector for next 1-2 years at least

3. Textile Industry: This sector is passing through one of the worst times. Even if Govt doles out any benefits, it won’t lead to significant improvement in its dire position. In fact, textile industry may post dismal results for next 2-3 quarters

4. Fertilizer sector: Share price of many fertilizer stocks had been ramped up brazenly although this sector has always underperformed. Even Govt is coming with some new policy for this industry; fertilizer industry should not expect any path-breaking changes and fortunes/profits of fertilizer companies may change only in a minor way.

5. Power sector: This sector has witnessed never-before (and i pray never-again) hype which led to mindless valuations

6. Telecom sector: Yes this sector continues to exhibit big growth. But companies at PE Ratio of 40-60 are not screaming buy

7. Power equipment industry: Valuations of this sector still appear to be attractive (comparatively)

8. Metals: Prices of various metals have already risen steeply and further rise may be very slow and in fact, there can be even reaction in metal prices. Hind zinc has already reported huge decline in its profits.

PURPOSE & DISCLAIMER:

For the first time in my life i am doing something that i am good at, in public. This blog is purely a cut-copy-paste work baring a few personal views. Their is a glut of sites, blogs, pages and views about investment & savings. Still understanding and finding the right instrument is difficult. This is an endeavor to simplify the complicated financial jargons and products to make it understood by laymen.

As the URL name suggests, it’s for laymen by a layman of finance. This blog is strictly meant for me, my family and my friends and their few friends. The blog is not meant for experts & gurus of finance.

The author of this page is not a registered financial advisor. One should not construe anything written here to be financial advice. All information is a point of view and is for educational and informational use only.