FMCG is ‘passe’: Indian economy has a new definition of defensive stocks: 8 stocks from 2 sectors with growth potential of up to 37%

summary

On the day the election results were announced and the entire stock market melted down, one sector stock, FMCG, was gaining. There were many theories as to why they were doing well. Since they were defensive stocks, the focus on them would not have shifted from investment to consumption. However, after almost a month, all these stocks are back to underperforming. The fact is, before deciding whether a stock is defensive or not, there are a few questions to ask. Stocks that were defensive stocks in 1994, when the Indian economy was just opening up, will continue to be defensive stocks even in 2024, when we have a completely different economy, with different needs and consumption patterns.

By ETMarkets.com

15 minutes of readingLast updated:
Jun 30, 2024 16:04:51 EST

From 1994 to 2024, a difference of 30 years, but there is one thing that has remained the same: the advice to move into defensive stocks when markets are volatile or there is a risk of an event. If we take the textbook definition of a defensive stock, it is a company that pays a dividend and has stable earnings regardless of the stock market conditions. But the textbooks and the reality on the street are very different. In 1994, FMCG stocks were probably

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