Management & Discussion Analysis of Dabur Limited Annual Report 2020 states the following with respect to FMCG Sector Analysis Learn to invest in stock market with Stock Investing Made Easy Course by Market Experts We are taking FMCG sector under which we will be studying about Dabur Ltd. Let us understand this with a particular example: When, the economy contracts and growth slows, Investors and analysts will turn their attention to research defensive sectors, such as utilities and telecommunication services as these sectors often outperform during economic downturns. The business cycle is comprised of expansions which are periods of economic growth, and contractions, which are periods of economic decline.ĭuring the expansion phase, investors or analysts who do a sector analysis would focus their research on companies that benefit from low interest rates and increased Capex.įor example companies in the financial and consumer discretionary sectors performance increases during the periods of economic growth. Sector analysis is based on the assumption that during different stages of business cycle certain sectors perform better. Sector analysis is employed by investors who are specialized in a particular sector, or who use a top-down or sector rotation approach to investing. ![]() It also helps in picking some underperformers. ![]() It provides an investor with a judgment about how efficiently companies in the sector can perform. Assessing the economic and financial condition of a given sector of the economy is termed as sector analysis.
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