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Market 2025 wrap: NIFTY50 gains 10%, SENSEX rises 9% despite FII sell-off, Trump tariff jitters; PSU Bank, metal stocks outshine
4 min read | Updated on December 31, 2025, 17:58 IST
SUMMARY
Among sectors, Nifty PSU Bank, which soared 30.5%, outperformed the main equity benchmark indices, taking the lead among sectors in 2025. On the NIFTY50 index, Shriram Finance emerged as the top gainer of 2025, surging 72.4%
In 2025, the Nifty Midcap 100 has risen about 6%, while the Nifty Smallcap 100 has fallen 5.6%. Image: Shutterstock
The Indian stock market ended 2025 on a positive note, demonstrating resilience throughout the year despite several early headwinds, ranging from concerns over Trump’s tariffs to sustained selling by foreign investors. A broad-based recovery in the second half of the year helped equities regain momentum.
Key factors that shaped the stock market in 2025 included Trump’s tariff measures, a sustained selling spree by foreign investors, the rupee touching a record low, the RBI’s repo rate cut, GST reforms, and India becoming the world’s fourth-largest economy.
Sectors: Winners and losers of 2025
Among sectors, Nifty PSU Bank, which soared 30.5%, outperformed the main equity benchmark indices, taking the lead among sectors in 2025. Nifty Metal (29%), Nifty Auto (23.4%), Nifty Financial Services (17.4%), and Nifty Bank (17.1%) were the other gainers in 2025.
At the fundamental level, the PSU Bank posted strong earnings growth throughout the year with cleaner balance sheets. The state-owned lenders which earlier grappled with bad loans are now top picks among investors for improved asset quality, strong earnings growth and improved efficiency.
NBFCs went through structural changes as RBI eased regulations on lending to the small and medium enterprises space, opening the door for untapped lending opportunities. Beyond monetary policy easing, the sectors also benefited from structural reforms, particularly the reduction in GST rates.
However, Nifty Media was the biggest loser, falling 20.5%, followed by Nifty Realty (-16.5%), Nifty IT (12.58%), Nifty Consumer Durables (12.07%) and Nifty Pharma (-2.94%).
Broader market in 2025
The broader market had a subdued run in 2025, with small-cap stocks underperforming for the first time since 2022. While midcap stocks remained in positive territory this year, their gains were significantly lower compared with the past two years.
In 2025, the Nifty Midcap 100 has risen about 6%, while the Nifty Smallcap 100 has fallen 5.6%.
| Nifty Midcap 100 | Nifty Smallcap 100 | |
|---|---|---|
| GAINERS | L&T Finance (133%) | Hindustan Copper (109%) |
| Aditya Birla Capital (101.2%) | Laurus Labs (84%) | |
| Muthoot Finance (78.4%) | Navin Fluorine International (82.4%) | |
| AU Small Finance Bank (78%) | MCX (78.6%) | |
| Ashok Leyland (62.5%) | Manappuram Finance (64%) | |
| LOSERS | Oracle Financial Services Software (-40%) | Tejas Networks (-62%) |
| Premier Energies (-38%) | Ola Electric Mobility (-58%) | |
| Kalyan Jewellers India (-37%) | Brainbees Solutions (-56%) | |
| IREDA (-35%) | Whirlpool of India (-51%) | |
| Dixon Technologies (-32.5%) | Newgen Software Technologies (-50.3%) |
Mid- and small-cap stocks (SMIDs) underperformed as heightened global uncertainty prompted investors to allocate money into large-cap stocks, which are perceived to be relatively safer and more liquid during volatile market phases.
Top gainers and losers of 2025
On the NIFTY50 index, Shriram Finance emerged as the top gainer of 2025, surging 72.4%. Maruti Suzuki and Eicher Motors were also among the main contributors, gaining 53.8% and 51.7%, respectively. Hindalco Industries (47.2%) and SBI Life Insurance (46.4%) also added strong momentum to the index.
On the flip side, Tata Motors PV (-50.4%), Trent (-39.9%), Tata Consultancy Services (-21.7%), ITC (-16.7%), and HCL Technologies (-15.3%) ended as the year’s biggest losers.
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