Defensive Stocks: The NSE’s Nifty 50 has come under sustained pressure in recent months, declining nearly 10 per cent in the recent leg of the correction, about 13 per cent over the past three months, and around 12 per cent since the start of the year.
The downturn has been largely attributed to a mix of global and domestic factors, including escalating geopolitical tensions in West Asia, persistent inflation, and a stronger US dollar. Rising bond yields and delayed expectations of interest rate cuts have further weighed on equities, while foreign institutional investor (FII) outflows and profit booking after recent highs have dampened overall market sentiment.
However, even as broader markets remain volatile, a handful of stocks have demonstrated resilience, emerging as relatively defensive bets backed by strong fundamentals and earnings visibility.
Here’s a list of stocks which remained solid during this period:
Upside of around 25%
LG Electronics India has seen limited downside despite the broader selloff, declining 4.79 per cent over the past month and currently stands at Rs 1,493.30. Brokerage firm Motilal Oswal Financial Services (MOSL) has maintained a “BUY” rating on the stock with a target price of Rs 1,860, implying an upside of around 24.6 per cent.
The company is expected to benefit from steady demand trends and a positive summer outlook, with management highlighting stable LPG availability and minimal disruption risks. Growth is expected to be supported by premiumisation trends, increasing export contribution, and margin expansion over the next few years.
Citi holds BUY
Pharmaceutical major Sun Pharmaceutical Industries has also held firm, gaining 1.81 per cent over the past month to Rs 1,763.20. Citi has reiterated its “BUY” stance following a strong quarterly performance, where adjusted revenue and EBITDA rose 14 per cent year-on-year.
The brokerage remains optimistic about the company’s speciality and innovation-driven portfolio, expecting margin expansion over FY27–FY28. While increased spending on product launches has been noted, analysts see potential for earnings upgrades, with valuations turning attractive after the recent correction.
The positive outlook is supported by the company’s push into new energy, including a USD 3 billion green ammonia deal with Samsung C&T. The agreement, spanning 15 years, marks a significant step in monetising its clean energy investments and aligns with its broader hydrogen and decarbonisation strategy.
MOSL sees 17% upside potential
In the power sector, Tata Power has edged higher by 2.12 per cent over the past month to Rs 388. Motilal Oswal has retained a “BUY” call with a target price of Rs 455, suggesting a potential upside of 17.3 per cent.
A key trigger has been the finalisation of the supplementary power purchase agreement (SPPA) for the Mundra plant, which is expected to significantly reduce losses. The company’s growth outlook is further supported by its distribution businesses, rooftop solar expansion, and backward integration into solar manufacturing.
The stock has been supported by improved investor sentiment toward gas companies and policy measures aimed at securing domestic gas supplies amid global disruptions.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
