NSE sector performance trend
Before making an investment it is very important to understand the sector in which one is making the investment. For simplicity, treat the sectors as Category and the companies under that sector as Products. For example, PNB comes under the Banking & Financial Services (BFS) sector. Given the amount of NPA's that the BFS sector is exposed to (which as per Forbes in 2018, is over 10,00,000,00,00,000 (10 Lakh Cr.), would you be willing to take the risk and invest in a sector reeling with huge NPA's? If you are not confident about investing in PNB, ICICI, SBI which are dominant players, then it is better to stay away from the sector itself. Not just banks, the recent ILFS scam, DHFL scams have exposed the BFS sector. One should wait for the year end results and check the balance sheets which will be finalised in April quarterly results and only then proceed with caution in investing in BFS sector.
So, before making any investment, it is wise to first see the category/sector performance and then take the plunge.
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