Metal, oil & gas sectors see sharpest rally in seven years in CY16

Oil & gas and metal sectors are set to post their biggest yearly gain since 2009, when they had rallied 73% and 234% respectively. Thus far in 2016, both indices have gained 41% and 24% respectively, as compared to a 1.43% rise in the benchmark - Stock Market Astrology Tips

On the other hand, classical defensive plays like information technology and pharmaceuticals have recorded a negative return of 9% and 10% respectively, while consumer durables and real estate sectors lost 8% and 4.5%, respectively on year-to-date (YTD) basis.

Among individual stocks, Hindalco Industries and Vedanta from the metal pack have become multi-baggers, gaining over 100% in 2016. Hindustan Zinc (91%) and Tata Steel (59%) too surged more than 50% thus far in the current calendar year.   Intraday Trading Tips

"Whilst it is difficult to estimate the timing of normalisation of supply (until which iron ore and coking coal prices could remain elevated and domestic steel prices could see some short term increase), prices should trend lower in the longer term. Moreover,Ashish Kejriwal, an analyst with Elara Capital remains positive on Hindalco and Vedanta. With aluminium producers focusing on cutting cost, he expects companies' profitability to improve going ahead.

Despite the H1-B visa related issues given Donald Trump's victory in the US Presidential elections, analysts remain positive on the IT sector given how the rupee-dollar equation may pan out going ahead. A depreciation in currency would help the Indian IT companies improve their margins significantly. Pharma stocks, however, could underperform given US FDA related issues with Indian pharma companies.   Commodity Trading Tips

According to analysts at Antique Stock Broking, the Indian IT industry after slowdown in revenue growth in CY16, is witnessing positive tailwinds from the improving US economy. Most noteworthy is the improvement in US financials, which is a leading indicator for Indian IT revenue growth.

"We acknowledge the risk/concerns on Indian IT under Donald Trump presidency and a possible tightening of the Visa regime. We note that Indian IT has taken steps to reduce dependence on Visa's in the past few years and inched up local hiring in US, this will mitigate the impact of any possible changes in Visa regulations," says Sandip Agarwal an analyst tracking the sector with Edelweiss Securities.