Defensive stocks soar as investors choose safety over uncertainty

The weight of FMCG, software and pharma companies in Nifty now at 31.5% from 25.3% in December 2017

The sell-off in the equity markets since the coronavirus disease (Covid-19) pandemic started and the subsequent rally have changed the relative weightings of key sectors in the benchmark indices on Dalal Street.

The composition of the Nifty50 has now tilted in favour of defensive sectors and away from cyclicals such as banks, non-banking finance companies, metals and mines, and automakers.

The combined weighting of three defensive sectors — fast-moving consumer goods (FMCG), software services, and pharmaceutical companies — is now at a three-year high of 31.5 per cent, up from 26.8 per cent at the end of December 2019 and 25.3 per