Defensive sectors like FMCG, IT, and healthcare are losing ground fast, with ICICI Securities reporting their lowest market cap share in over a decade—even as they remain priced at a steep premium.

ICICI Securities has flagged a major market rotation: the combined market cap of defensive sectors—FMCG, IT, and healthcare—has slipped to just 20%, down from 30% in 2020, marking their weakest showing since 2011. This decline reflects shifting investor sentiment away from stability toward growth and cyclical exposure. Advertisement

The drop isn’t just in market cap. Their profit pool share has collapsed to 16%, down from a dominant 40% in FY21. And it's set to fall further—to 14% within two years, according to projections.

Yet, these sectors still command steep valuations. Defensive stocks

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