Time to invest in cyclicals as economic recovery gathers steam: Analysts

Despite the large economic impact of the Covid-19 pandemic, the markets have recovered sharply even though the performance among individual stocks has been quite polarised

After a 52 per cent rally in the benchmark indices – the S&P BSE Sensex and the Nifty 50 – form their respective March 2020 lows led by pharmaceutical, automobiles, information technology (IT) sectors and index heavyweight Reliance Industries (RIL), analysts now suggest investors should now rotate money to cyclical plays like banks and cement as the economic activity picks up pace.

"As the market repositions itself for the normalisation of the economy, analysts at CLSA believe that core domestic sectors should start outperforming the global defensives like IT and pharma," wrote Vikash Kumar Jain, an investment analyst at CLSA