Defensive stocks came under selling pressure on May 22 as investors rotated into banking and financial shares, with Sun Pharmaceutical Industries, ITC and Power Grid Corporation among the notable decliners on the Sensex.
Sun Pharma fell 2.71 percent, ITC lost nearly 2 percent and Power Grid declined as part of a broader shift away from sectors perceived as safe havens during the day’s rally. Bharat Electronics also traded lower among index constituents.
Pharma and consumer staples had previously attracted flows when geopolitical tensions and rising oil prices pushed investors toward lower-beta names. The reversal on Friday reflected improved risk appetite linked to reports that the RBI may avoid aggressive rate hikes and signs of progress in Middle East diplomacy.
Healthcare and FMCG indices posted mild losses even as the broader Nifty gained 0.27 percent. Analysts said selective profit booking in defensives is common when cyclical sectors such as banking lead a recovery. Foreign investors have continued reducing equity holdings, adding a layer of caution beneath the day’s headline gains in financial stocks.
Max Healthcare fell 3.87 percent, making it the steepest Nifty 50 decliner on the session. The Nifty Pharma index slipped 0.23 percent while financial services ex-bank gained 1.17 percent. Sector rotation reflected easing fears of aggressive RBI rate hikes after reports citing coordination with the government on currency policy.
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Sources:
https://tradingeconomics.com/india/stock-market