Bottoming out sector !

I read your cover story on “Two sectors that have bottomed out”. Thank you for identifying the 52-week low statistics for the cement stocks. Can we say that when such large number of stocks in a particular sector touch their 52-week lows, the sector is bottoming out? 

- Maina Gautam 

Editor Responds: 

Thank you for writing to us with your query. While the 52-week low data for the cement stocks talk a lot about the poor performance of these stocks, the 52-week low data in itself may not be sufficient to conclude that the sector has bottomed out. There are various other factors that need to be taken into consideration such as revenue de-growth, margin pressures, profitability, etc. to ascertain whether or not the sector has bottomed out.