Guwahati, July 29 -- When traders analyse sector performance, they usually notice that energy and metal stocks tend to move in the same direction during certain phases of the economic cycle. This relationship becomes especially noticeable during a capital expenditure, or capex, cycle, when businesses and governments increase spending on infrastructure, manufacturing, and large-scale development projects.

Although the two sectors have different purposes, they are closely connected through industrial activity. As investment in roads, railways, power plants, factories, and housing projects rises, the demand for both metals and energy generally increases. This link can help traders understand sector trends and why these stocks act the same d...