Stock Market: Sectoral Rotation Underway as Money Chases Value

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Stock market actions reveal sectoral rotation by investors as they chase value amid broad-based rally in the market

By S JHA

Mumbai, February 10, 2026 — A major sectoral rotation is underway in the Indian markets. Trades in the last few days indicate that investors are shifting attention to stocks where value has emerged lately. The index on Tuesday despite firm gains failed to hold on to the momentum.

In the wake of India-US interim trade deal announcement, a burst of value blast in textile stocks was seen. A number of textile stocks gained as much as 40 percent in two days.

The relay rally was passed on to gems and jewelry stocks. Feverish bargain hunting spiked the prices of such stocks. The likes of Goldian, Kalyan Jeweler, Titan, and many others sharply moved in the last two sessions.

That relay rally as a mark of sectoral rotation was passed on to food stocks on Tuesday. Eternal led the party among the food consumption stocks. Eternal, formerly Zomato, gained as much as seven percent during the day. Swiggy also locked gains of five percent. Sapphire, Jubilant Foodworks, and others also followed suits.

The trend was further seen on Tuesday as the auto stocks gained the limelight of investors. Bajaj Auto led the sector with sharp gains. Maruti, Mahindra and Mahindra, and Tata Motors showed strength during the day.

The IT stocks, already battered, sought to reverse the losing trends. But they failed to register momentum, as investors remain skeptical about the impact of AI on them as per market participants.

“Considering the strong weekly structure formed last week and the fact that prices continue to trade above key moving averages, we maintain a positive bias. That said, given the lack of momentum at the index level, traders should preferably adopt a buy-on-dips approach and look to book longs at higher levels until clearer signs of strong follow-through emerge,” said Angel One in a note shared with clients on Tuesday.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company.)