One of the study projects I’m doing is what influences which sectors and themes drive a bull market. Recently, defence, railways, EVs, engineering/manufacturing and PSUs have been the leaders.
In the 2010-2018 cycle it was NBFCs and high RoCE asset-light consumer companies.
The 2003-08 cycle was led by real estate, infrastructure, metals etc.
I am trying to understand: what factors drive this?
Some of my hypotheses include:
- Capital cycle of that sector
- Government policy push
- Starting/initial valuations
Thoughts invited.
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