New Delhi, Oct. 6 -- India's post-pandemic profit resurgence has been overwhelmingly powered by cyclical and capital-intensive sectors, pushing defensives such as FMCG, healthcare and IT to the sidelines. According to Vinod Karki of ICICI Securities, the profit pool share of defensives has dwindled to 16% from nearly 40% in FY21 and is expected to slide towards its historical low of around 14% over the next two years. Their market-cap share has already fallen to ~20% - the lowest since 2011 - from a peak of 30% in 2020.

External shocks have further soured sentiment. A steep increase in H-1B visa fees and 100% tariffs on some pharma products have intensified pressure on IT and healthcare companies, compounding an already weak earnings bac...