Share market basics
The shift of money from one industry group to another as the economic cycle or market mood changes, such as from IT stocks into banks.
Sector rotation describes how money moves between industry groups over time. Different sectors do well in different conditions: banks and autos often lead when interest rates fall and the economy grows, IT stocks track the dollar and US spending, FMCG and pharma are seen as defensive when the market is nervous, and metals follow global commodity prices. Large investors shift allocations as their view changes, and the shift shows up in relative performance. Suppose Nifty is flat over a month while Nifty Bank rises 6% and Nifty IT falls 5%; money has rotated into banks. Traders use sector indices and relative strength to find where momentum is, and to avoid buying strong stocks in weak sectors. Rotation is easier to see in hindsight than in real time, and chasing last month's leader often means arriving late.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
