Sir,
I can phrase my reply With reference to Banks and CG companies being cyclical. These both cycles are inter related to interest rates.
Banks experience high growth when Interest rates are low. Banks also are more liberal in giving loans when Interest Rates are low.
Consumers also can afford a lot more when their EMI is low. So the companies need to produce more as their capacity will be exhausted. So they order more CG to expand business.
Interest rates can not be low forever as Inflation raises and governments have mandate to protect the value of their currency. So they start raising interest rates and this cycle continues.
Hence Banks and CG are considered cyclical.
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