Is this ASX 200 stock set to rally amid the bear market crash?

Losses on the S&P/ASX 200 Index deepened after the federal government announced its stimulus plan. But this defensive stock could outperform in the near-term, according to a top broker.

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The underwhelming stimulus package announced by the federal government this morning triggered a deeper sell-off in the market.

The S&P/ASX 200 Index (Index:^AXJO) (ASX:XJO) crashed 2.9% in late morning trade after Prime Minister Scott Morrison unveiled a $17.6 billion package to ward off a coronavirus-induced recession.

The index was down a more modest 1.7% before the news conference and it's travel stocks like the Webjet Limited (ASX: WEB) share price and Flight Centre Travel Group Ltd (ASX: FLT) share price that are among the worst performers.

No safe havens?

But no sector was immune from the carnage. Big banks like the National Australia Bank Ltd. (ASX: NAB) share price and the major miners like the BHP Group Ltd (ASX: BHP) share price crashed by at least 2% each.

There doesn't seem to be any light at the end of the tunnel – at least not in the short-term.

Amid the gloom, there may be one stock that could be about to outperform over the coming weeks, according to Morgan Stanley.

Why this property stock could outperform

The broker believes that DEXUS Property Group (ASX: DXS) could provide some shelter in the property sector and estimates that there is a 60% to 70% chance of the stock beating its peers over the next 60 days.

"This is because of our view that DXS's earnings and valuation will be very resilient amidst a time of market volatility, given its secure contracted rent increases, against a backdrop of almost all-time low vacancy in the Sydney office market," said the broker.

"In addition, continued interest in Australian office in the direct market means DXS's asset valuation should remain robust, providing further support to its share price."

Defensive stocks in favour

Stocks with defensive earnings will be sort after in any market crash. The fact is, the shutdown in some sectors due to the global pandemic will spill over to almost every company.

Those directly in the firing line, like travel stocks including Qantas Airways Limited (ASX: QAN), have already warned about the hit to their bottom line.

Other stocks that are more removed from the economic hit from COVID-19 will fare better, as long as the pandemic gets under control in the next two months. Otherwise, all bets are off.

Foolish takeaway

Other stocks that also have defensive characteristics include blood treatment maker CSL Limited (ASX: CSL) and glove manufacturer Ansell Limited (ASX: ANN).

The Dexus share price wasn't spared from the sell-off today despite the positive broker note. The stock fell 2.3% to $12.09 at the time of writing.

But both CSL and Ansell are also in the red, highlighting how investors would dump anything and everything when in a state of panic.

Brendon Lau owns shares of BHP Billiton Limited and Webjet Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Ansell Ltd. and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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