From safe bets to sore spots — and maybe back again

2025 turned FMCG, IT, and pharma into market laggards. Yet with earnings stable and valuations cooling, their next move could surprise

- KRISHNA KANT & RAM PRASAD SAHU

The classic defensive sectors - fastmoving consumer goods (FMCG), information technology (IT) services, and pharmaceutical (pharma)-failed to live up to their reputation on the bourses in calendar year 2025.

These companies, traditionally considered recession- or slowdown-proof, were expected to offer stability and capital protection to equity investors amid market volatility and macroeconomic uncertainty. Instead, the three defensive sectors turned into the biggest sources of disappointment for investors over the past 12 months. They grossly underperformed the broader market, even as cyclical sectors such as banking, metals and mining, and automotive led the recovery in benchmark indices from their February lows.