The new defensive stocks of the Indian economy: 2 sectors, 7 stocks and an upside potential of up to 53%

After witnessing a sharp surge in their valuations from 2020 to 2023, a number of these stocks have been in what can be called a valuations readjustment phase. The rate at which the readjustment was taking place gathered pace in the first three months of 2025. So, we are at a point where the probability of some of them outperforming a bearish market is high. And as and when sentiment for the mid-cap segment improves, they might be the ones to notch up a better performance. Also, in some industries, there is a certain assured demand. That makes them somewhat like defensive stocks in times of volatility.