Indian equity markets closed the final trading session of 2025 on a firm note, breaking a four-day losing streak, led by strong buying interest in metal stocks. Sentiment improved sharply after the government announced a three-year import tariff on select steel products to curb cheap imports, especially from China—providing a decisive boost to domestic steel makers.

On Wednesday, December 31, the Nifty 50 advanced 190.75 points (0.74%) to settle at 26,129.60, while the Sensex gained 545.52 points (0.64%) to close at 85,220.60. The Bank Nifty rose 0.69%, ending comfortably above the 59,500 mark. With this move, both benchmark indices snapped a four-session losing streak.

Despite intermittent weakness in recent sessions due to foreign fund outflows and thin year-end volumes, Indian equities wrapped up 2025 with healthy annual gains. The Nifty rose 10.51% and the Sensex gained 9.08%, marking the tenth consecutive year of positive returns—a testament to the market’s structural strength.

Volatility remained exceptionally subdued, with the India VIX hovering around 9.4, the lowest level recorded at a calendar year-end. Strong domestic inflows, resilient corporate earnings, and a stable macroeconomic backdrop helped suppress risk premiums, even as foreign investors continued to pare exposure to Indian equities.

Sectoral Performance & Stock Movers

Metal stocks dominated the rally. The Nifty Metal index surged 1.43% following the tariff announcement on steel imports. JSW Steel jumped 4.8%, while Tata Steel gained 2.4%, making them among the top Nifty gainers.

Looking back at 2025, markets remained largely range-bound for much of the year amid concerns over sluggish earnings growth, a weakening rupee, rising trade frictions with the US, and record foreign investor outflows. Benchmark indices returned to record highs in November after a 14-month gap, supported by tax relief measures, RBI rate cuts, and early signs of improving corporate profitability. However, the momentum faded in December, and the rally could not sustain into year-end.

Among individual stocks, RITES rose 2.33% after securing a USD 3.6 million order from a Zimbabwe-based entity. Dynacons Systems surged 11.42% after winning a ₹2.49 billion software project from the Reserve Bank of India.

Sectorally, 10 out of 11 indices closed in the green. The Nifty Media index led with a 1.5% gain, its strongest rise in the last 15 days. Nifty Energy and Nifty Metal advanced over 1.4% each. The Nifty IT index was the lone laggard, slipping 0.03% and extending its losing streak to six sessions.

Broader markets outperformed, reflecting improved risk appetite. The Nifty Midcap 100 gained 0.95%, while the Nifty Smallcap 100 rose 1.11%.

On index contribution, Reliance Industries added 43.23 points to the Nifty, followed by Kotak Mahindra Bank (16.22 points) and Axis Bank (14.26 points). On the downside, TCS dragged the index by 8.24 points, with Infosys and Tech Mahindra weighing in with declines of 2.84 points and 1.89 points, respectively.

Market Breadth & Internals

Market breadth remained decisively positive. Out of 3,250 stocks traded on the NSE, 2,222 advanced, 936 declined, and 95 remained unchanged.

A total of 68 stocks hit 52-week highs, while 83 stocks touched 52-week lows. Additionally, 74 stocks were locked in Upper Circuits, whereas 60 stocks ended in Lower Circuits, indicating selective but healthy participation.

Global Economic Calendar

Year-end session; no major global economic data releases scheduled.

What This Means for Investors

The year-end rebound reinforces the importance of staying invested through volatility, especially in structurally strong sectors.

Policy-driven tailwinds can create sharp sector-specific opportunities, as seen in metals today.

Low volatility and strong domestic flows continue to provide a supportive base for Indian equities despite FII selling.

As 2026 approaches, focus on quality businesses, earnings visibility, and asset allocation discipline rather than chasing short-term momentum.

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