Sector rotation in its simplest form is the reaction of the market to shifts in the economic environment. The various sectors are enjoyed at various stages of the cycle.

Equity markets usually appear to be tranquil at the surface when the chart of headline indexes like Sensex and Nifty are observed in the long run. Index levels can change marginally on a day-to-day basis or crawl upwards in small increments, creating the illusion of stability.

📖 Read the full article: Is sector rotation the real driver of returns in Indian equity markets?