Defensive stocks are shares of companies whose products or services remain in demand regardless of economic conditions. These businesses provide essential goods such as food, healthcare, utilities, and basic household items. Because people continue to use these products even during a slowdown or recession, defensive stocks tend to be more stable and less volatile compared to other sectors.

Common examples of defensive sectors in India include:

• FMCG (Fast-Moving Consumer Goods)
• Healthcare and Pharmaceuticals
• Utilities (Power, Gas, Water)
• Consumer Staples

Key benefits of defensive stocks:

• Lower volatility during market downturns
• Stable cash flows and dividends
• Better downside protection for portfolios

Defensive stocks play an important role in diversification and can reduce risk in an equity portfolio. However, they may deliver moderate returns compared to high-growth sectors during bull markets. A balanced allocation across defensive and growth sectors helps create a more resilient long-term portfolio. And remember to take an expert’s advice before plunging into direct stock investing.