In the world of stock markets, identifying bullish sectors can provide a compass to finding great investments. Sector analysis is essential to diversify your investments, make smart investment decisions, and understand broader trends.

In this edition of Chart of the Week, we examine Trendlyne’s sector dashboard to find the top-performing sectors. For each sector, we analyze the companies contributing to the sector's rise. 

Telecom equipment and fertilizer sectors rise on government subsidies and schemes

The telecommunications equipment sector saw an 85.3% share price growth in the past quarter. A primary driver for this surge was ITI, accounting for 90.5% of the sector’s rise, thanks to a 155.3% quarterly increase in its stock price. 

ITI's expansion into laptop and micro PC manufacturing holds the potential for long-term growth, provided it can establish itself as a reliable and competitive player in this market. 

The company's track record of benefiting from government initiatives and contracts, and opportunities stemming from global supply chain disruptions have further increased its stock price in the past quarter.

Next up, we have the fertilizers sector, which has risen 24.5% in the past quarter. This can be attributed to the Centre’s subsidy schemes worth Rs 3,70,000 crore. The Israel-Hamas conflict has also led to an increase in commodity prices due to concerns about the global potash fertilizer supply chain. Ashdod Port, a significant export hub for Israel's potash, is currently operating in emergency mode due to the conflict. This situation places approximately 3% of the world's potash supply at risk, according to Bloomberg. Other major contributors to this sector’s performance  were The Fertilisers and Chemicals Travancore and Gujarat Narmada Valley Fertilizers & Chemicals, with contributions of 76.1% and 6.4%, respectively to sector growth, and quarterly stock price increases of 54.5% and 19.9%.

Realty sector rises, helped by expansion and new launches 

We now turn to the realty sector, which has surged by 23.2% in the past quarter. This can be attributed to a positive shift in consumer sentiment, as per Knight Frank’s NAREDCO real estate sentiment index. The optimism of real estate developers primarily stems from the RBI's decision to refrain from raising interest rates for the fourth time and a spike in residential demand during the festive season. REA India says, “Post-pandemic, the demand for home ownership and larger homes, thanks to hybrid working models, have offset concerns about high interest rates.”  

Major contributors to this sector's growth were DLF and Macrotech Developers. These stocks made contributions of 24.2% and 14.2%, respectively, owing to their quarterly stock price increases of 21.6% and 22.2%. DLF hit a new 52-week high of Rs 525.8 on September 5, following the announcement of its plans to launch a series of residential projects worth nearly Rs 20,000 crore across India during this fiscal year. Macrotech Developers acquired seven land parcels to develop housing projects worth Rs 14,300 crore in Mumbai, Pune, and Thane.

Gems & jewellery outshines textile, apparel and accessories

The textiles, apparels & accessories sector rose 18.6% in the past quarter, led by the gems and jewellery industry’s impressive growth of 20.7%. Titan Company, with a 28.8% contribution to the sector's growth and Kalyan Jewellers India, contributing 23.8%, saw their stock prices surge by 12.1% and 87.8%, respectively, over the past quarter. 

Meanwhile, the media sector also performed well, with a 16.9% increase in the past quarter. This achievement was made possible through contributions from Sun TV Network (35.2%) and Zee Entertainment Enterprises (23.1%), driven by quarterly stock price rises of 24.7% and 16%, respectively. Notably, PwC expects the Indian media and entertainment sector to grow at a CAGR of 9.5%, ultimately reaching a market value of $73.6 billion by 2027. PwC expects subscription service revenues to grow at a 13% CAGR, reaching $2.6 billion, while ad-supported services (AVOD) are poised for faster growth from a smaller base.

The telecom services sector also rose by 13.4% in the past quarter, driven by significant contributions by Vodafone Idea (49.1%) and Bharti Airtel (36.4%). During this quarter, Vodafone Idea's stock jumped by 74.5%, while Bharti Airtel saw a 6.9% rise. On November 2, Vodafone Idea increased by 7.4%, following reports of HDFC Bank granting a loan of Rs 2,000 crore to the company to assist in covering license fees and 5G spectrum fees.

Construction sector soars on the back of strong order book and new orders

The cement and construction sector saw a 11.3% increase in the past quarter, thanks to Larsen & Toubro and UltraTech Cement making contributions of 35.4% and 9.2%, respectively. Their share prices rose by 14.1% and 6.1% over the quarter. Larsen & Toubro's robust performance can be attributed to its strong order book and the acquisition of new orders. In H1FY24, the company secured orders worth Rs 1.5 lakh crore, and by September 2023, its order book rose by 21.6% YoY to Rs 4.5 lakh crore.

The transportation sector rose by 10.4% in the past quarter. This increase was primarily fueled by contributions of 43.5% from JSW Infrastructure and 11.8% from Cochin Shipyards, as their respective quarterly stock prices surged by 58.4% and 48.2%. On November 4, JSW Infrastructure's stock price climbed by 9.8%, following its entry into the container train operation business with the acquisition of Sical Multimodal and Rail Transport.

Finally, we move to the general industrials sector, which posted a 10.3% increase in the past quarter. This surge can be primarily credited to Suzlon Energy and Solar Industries India making notable contributions of 29.6% and 14.7%, respectively. Their stock prices rose by 100.3% and 48%, respectively. Suzlon Energy's upward trajectory is fueled by a robust order book, which includes the construction of wind power plants of 1.5 GW capacity and strategic debt reduction plans