Defensive stocks offer limited support as broader market remains under pressure

Amid a weak broader market, select defensive stocks showed relative resilience, though gains remained modest and insufficient to offset the wider decline in equities.

Shares of Power Grid Corporation of India edged higher, reflecting continued investor preference for stable, dividend-yielding businesses during periods of uncertainty. The stock’s performance stood out on a day when most sectors traded in the red.

In contrast, banking stocks continued to face pressure. ICICI Bank declined, although it managed to outperform several peers within the financial space. Concerns around interest rate sensitivity and foreign investor selling have kept the sector subdued.

The divergence in performance points to a cautious shift in investor strategy, with capital moving towards sectors perceived as relatively insulated from global shocks. Utilities and select public sector undertakings have benefited from this trend, supported by predictable cash flows and government-backed visibility.

However, market participants note that such defensive positioning can only provide limited support if broader risk sentiment remains weak. Sustained recovery in equities will likely depend on stability in global cues, easing commodity prices and a pause in foreign outflows.

For now, the market appears to be in a phase of consolidation, with investors prioritising capital preservation over aggressive risk-taking.