Sector Rotation with Leading Macroeconomic Indicators

In this study, an attempt has been made to examine whether the theory of sector rotation has been empirically valid in the Indian equity market, during the period April, 2000 to March, 2020. The time period has been divided into many sub-periods according to the real GDP growth rate and the annualized returns of eleven stock market indices have been analyzed in different periods. Going forward, leading macroeconomic indicators, which coincide with overall economy, have been taken and their association with stock market indices have been analyzed through statistical measures to assess any possible forecasting. In the first part of the study, cyclical and non-cyclical sectors have been found to beat the benchmark index during periods of growth and stagnancy, respectively, but no particular ordinality was observed. Amongst the leading economic variables, M3 Money Supply was found to have high degree of association with some indices, namely Sensex, Healthcare, CDGS, Consumer Durables and IT, but no linear relation was observed.

An investigation of flux characteristic in direct torque control using sector rotation strategy

Stator flux fails to regulate at low operating speed condition is a common drawback for the conventional DTC. It is due to the inevitable of voltage drop across the stator resistance that interrupts the controlling of stator flux in DTC. Hence, a fixed sector rotation strategy is one of the solutions to rectify the raised issue. The strategy is based on the decreasing stator flux droop, which is an easy technique to change the sector of flux locus at a specific angle. However, this strategy only focuses at low operating speed. Thus, the stator flux droop effect at the various speed needs to be analysed. In this paper, an investigation is conducted by using simulation (MATLAB/Simulink) and experimental setup (dSPACE board) where a good agreement has been achieved between the predicted and measured results. The analysis taking into account between the conventional method (without strategy) and the proposed method (with strategy). In conclusion, the influence of stator flux droop is inversely proportional to the operating speed.

Stator flux in direct torque control using a speed and torque variation-based sector rotation approach

A typical problem of traditional DTCs is that the stator flux fails to regulate at low running speeds. The regulation of stator flux in DTC is disrupted because of the unavoidable voltage drop across the stator resistance. As a result, one of the solutions to the problem is to use a fixed sector rotation technique. The concept is based on decreasing stator flux droop, a simple technique for changing the flux locus sector at a certain angle. This method, however, is only effective at low working speeds at one value of torque. As a result, the stator flux droop effect at various speeds as well as torque must be studied. The study is carried out in this paper using simulation (MATLAB/Simulink) and a practical setup (dSPACE board) where both have performed similar outcomes. The comparison is done between the conventional method (without a strategy) and the proposed method (with strategy). In summary, the effect of stator flux droop has been found to have an inverse linear relationship to the speed and torque variation.

Are the Industry Cycles the Global Trend in Investment Activity?

Research background: According to the concept of sector rotation, industry cycles affect the investment attractiveness of companies. Industry cycles relate to business ones, and specific industries are preferred for investors depending on the phase of the latter. The scope of this concept application is portfolio investment management. However, we use it in a new way, assuming that the unfavourable phase leads to a decrease in the investment activity of companies in the corresponding industry. Purpose of the article: Since the concept of sector rotation claims universality, we reveal if the industry cycles are the global trend in investment activity. The research purpose is to test the hypothesis of an industry cycles’ impact on the dynamics of the investment activity in companies obtaining external financing. Methods: Using the concept of sector rotation, we suggest several industry groups and tested whether the peak of investment activity in each group falls on the expected favourable phase of the business cycle. In the context of global investment trends, this hypothesis should be confirmed at public companies of any sufficiently large financial market. For testing, Russian companies were selected. The growth rate of capital investments was used as an indicator of investment activity. Findings & Value added: It was revealed that the hypothesis about the impact of industry cycles on the investment activity of a business has the potential for further research. However, there is no sufficient evidence to consider the orientation of the investment behaviour of companies on industry cycles as a global trend.