Placing Sectoral Bets
With the market having rallied significantly on positive economic prospects and higher earnings, most sectors have performed well. But, going ahead, certain sectors will do better than others. In fact, there is some correlation between the different stages of business cycles and sectoral performance. Investing in the right sector which corresponds to the business cycle will mean better returns from your investment.
 
A business cycle essentially represents distinct changes in the rate of economic activity. The stage of a business cycle can be identified by observing indicators such as gross domestic product growth, employment, corporate profits, credit and inventories. Fluctuations in the business cycle can be a critical determinant of sector performance. Every business cycle is different in its own way, but certain patterns have tended to repeat themselves over time. While unforeseen macroeconomic events can sometimes disrupt a trend, changes in these key indicators have historically provided a relatively reliable guide to recognising the different phases of an economic cycle.
 
In a rising cycle, automobiles, travel, hospitality, infrastructure, etc, begin to boom. These are known as ‘cyclical sectors’. From January 2004 to January 2008, when the economy was in a growth phase, cyclical sectors delivered average annual returns of 40%.
 
When there is an economic slowdown, ‘defensive stocks’ from utilities, pharmaceuticals and healthcare sectors tend to do well and provide relatively stable returns. From January 2008 to January 2014, which included one of the worst financial crises of our times, defensive companies delivered over 16% annually.
 
How can an investor benefit from this approach? An investor could choose a top performing equity diversified scheme or an equity scheme that has no static market-cap bias or sector bias and will invest across companies and industries based on economic trends. The managers of the scheme could use various indicators such as earnings growth trends, credit growth, consumer spending and other relevant factors to determine which sector or company would be likely to perform well. A fund manager, who picks the right stocks from the right sector, is likely to outperform over the long term.

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YouTube videos to be available offline & free in India!

YouTube will be available offline in India in the coming weeks. This means you can download YouTube videos when connected to a high speed network, and watch it later without using Internet connection

 

Soon Indians would be able to download and store YouTube videos on their mobile phones. While launching its Android One platform, Google said in the coming weeks YouTube would be available in India for offline usage.

 

“Within the coming few weeks, much of YouTube will be available offline in India. This is huge, and our users will really, really like this. You can download a video once, save it to your phone, and watch it again and again,” said Caeser Sengupta, Product Management Director at Google during the launch event.

 

This means one can download a video, while online, and watch it later without the data connection. Exact details of this offer are not available. According to media reports, this download would be free of any cost (except data charges) in India. However, it is not clear, if this offer would be free for limited period because Google reportedly is launching its subscription service at $9.99 per month.

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COMMENTS

Sankar Amburkar

2 years ago

Is this a big deal? Even when you watching if offline, Google can identify what video you are watching and display Ads accordingly.

North Eastern region is a priority area for us: General VK Singh

The government announces a slew of projects for the NE region

 

General VK Singh, Minister of Development for North Eastern Region (NE region) said today that enabling infrastructure shall be provided to develop external markets for agricultural produce from NE region. Steps are being taken to ensure that 10% non-lapsable funds earmarked for the North East are actually utilised for the region, said General VK Singh. Each project is being reassessed in terms of utility, money already spent he said in the context of committed liabilities exceeding Budget. He however conceded that the progress on rail links in the last 10 years has been very tardy, and impetus being given to this now. “We want the Trans-Arunachal Highway to be completed at the earliest,” added General VK Singh.

 

There is no hindrance in getting funds released from line Ministries or for getting things done for the North East, emphasized General VK Singh. “We are placing a special emphasis on infrastructure; liaising with shipping, civil aviation and transport ministry,” General VK Singh said.

 

He said that the government is discussing with the Railway Ministry the possibility of expediting ongoing rail projects on Rail corridor in NE region. To make air connectivity viable, a holistic approach was needed in the NE region, he added. Pricing of flights will have to be formulated so that it is affordable, General VK Singh suggested.

 

Among other promises from General VK Singh, the following are important: There is going to be a Centre for Entrepreneurship development in Jorhat University. Discussions with people in MSME sector; the government's aim is to promote the MSME sector in North East. JNU (Jawaharlal Nehru University) has come up with a proposal for a hostel for 1200 students of North East. Rural, economic and adventure tourism are aimed to be promoted in the NE region. Looking at tourism and knowledge of the North East are to be priority areas. There are talks with food processing ministry to establish a cold chain in the NE, and to develop irradiation facilities. The government aims to transform the whole of North East into an organic hub, which can service the rest of the country as well as world.

 

General Singh said that he is looking at the entry of private players like Apollo Hospitals (in Guwahati) in health sector. He is also looking at Medicity in North East; where we can have one medical college, one dental college and other ancillary facilities.

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