Learn How to do Sector Analysis

In this Face2Face video, Mr. Vivek Bajaj holds a discussion with Mr. Jay Toshniwal to discuss the nuances of sector analysis in the Indian Stock Market. Many of us in the stock market are eager to know which sectors offer us profitable avenues for investment. While stock analysis can still be performed, analysing an entire sector can be quite cumbersome, even though it is sometimes essential. Therefore, in this video, we have with us Mr. Jay Toshniwal, who will give us some fundamentals of effective sector analysis.

Mr. Jay Toshniwal has been participating in the stock market since he was a young student, and over the years, he has gained immense experience in the field of fundamental analysis and sector analysis. He will start our technical discussion by discussing the importance of patience in analysing the stock market. He will first discuss the recent media expansion over the years and the importance of reading between the lines when it comes to interpreting the analysis of sectors.

We will discuss the basics of right sector identification and how we can do this with the top-down approach, and a glimpse of the various sectors that contribute to the Indian Economy and the stock market today. Mr. Jay Toshniwal will also discuss the major changes which have led to the expansion of various sectors throughout the economy, and we will discuss this under the multiple heads of industrial, retail, financial, IT sectors, etc.

Next, Mr Jay Toshniwal shows us some macros we can track to create a forward-style mindset to analyse the market’s sectors easily. Further, with practical examples, we will discuss how we can read between the lines and interpret principles of macroeconomic actions like government actions to make the best possible analysis of sectors. With some extensive case studies, we will understand the importance of understanding the cyclicity of businesses to make better decisions regarding analysis and investing. Lastly, we will look towards some sectors, like power and the financial sector and discuss the overview of what a full sector analysis should contain. We will also discuss the importance of the right kind of interpretations from data, news flow, and corporate actions.