Stock Market Recap 2025: Indian stock markets showed strong resilience as the benchmark index BSE Sensex jumped 8 per cent despite an intense selling by
foreign institutional investors (FIIs). The 8 per cent rise in the benchmark helped Dalal Street investors became richer by about Rs 30.20 lakh crore. The market performance in 2025 was notable because investors faced worries related to global tariffs and valuations related concerns. In addition, the rupee weakened against major global currencies, adding to the pressure. Analysts said domestic investors played a big role in supporting the markets. Regular inflows from retail investors and mutual funds helped absorb foreign selling. Besides, India’s strong macroeconomic stability, which was marked by strong GDP growth, supported market sentiment and kept investors optimistic through the year.
Sensex In 2025: Index Up 6556 Points
Till December 29, this year, the 30-share BSE Sensex jumped 6,556.53 points, or 8.39 per cent. The benchmark hit its record high of 86,159.02 on December 1. The market capitalisation (mcap) of BSE-listed firms surged by Rs 30,20,376.68 crore to Rs 4,72,15,483.12 crore (USD 5.25 trillion) so far this year.
The mcap of BSE-listed companies had hit the coveted Rs 400-lakh crore mark for the first time in April last year.
FIIs Sold Stocks Worth Rs 1.6 Lakh Cr
In 2025, foreign investors pulled out a record Rs 1.6 lakh crore (USD 18 billion) from the stock market, according to PTI report.
Pranay Aggarwal of Stoxkart told PTI that consistent SIP inflows, increased retail participation and confidence in the long-term growth story provided stability to the Indian markets even during global volatility.
Nitin Rao, CEO, InCred Wealth, told PTI that despite outflows continuing to be an issue for foreign investors, the resilience of the market was demonstrated. "One of the key drivers for the Indian market in 2025 has been the presence of robust domestic investor support," he said.
"The year 2025 can be best described as a year of consolidation and transition for Indian equities. After several years of strong double-digit returns, benchmark indices delivered more moderate gains, with Sensex and Nifty rising around 8-10 per cent for the year. While these returns may appear modest compared to previous years, they came amid global headwinds, foreign fund outflows, and valuation corrections," Ponmudi R, CEO, Enrich Money, an online trading and wealth tech firm, said.
Record IPOs In 2025
A record number of initial public offerings (IPOs) this year also helped markets log gains. Among the year's largest main-board IPOs, Tata Capital's Rs 15,512 crore issue topped the list, followed by HDB Financial Services (Rs 12,500 crore), LG Electronics India (Rs 11,607 crore), Hexaware Technologies (Rs 8,750 crore), Lenskart Solutions (Rs 7,278 crore) and Billionbrains Garage Ventures (Rs 6,632 crore).
RIL Remains Most-Valued Firm
Reliance Industries remained the country's most-valued firm in terms of market valuation. The company has a market capitalisation of Rs 20,91,173 crore, followed by HDFC Bank (Rs 15,25,457.75 crore), Bharti Airtel (Rs 11,86,978.75 crore), Tata Consultancy Services (Rs 11,77,199.05 crore), and ICICI Bank (Rs 9,60,478.36 crore) in the top-five order.
"Against the backdrop of healthy returns during 2020-2024 period, 2025 has turned out to be a year of consolidation and mean reversion. Some pockets of markets were trading at an expensive valuation and this coupled with earnings slowdown with increasing global uncertainties led to correction in the market during the 1Q of the 2025 followed by gradual recovery since April 2025 across large caps," Sunny Agrawal, Head, Fundamental Research at SBI Securities, said.
The Sensex had jumped 5,898.75 points or 8.16 per cent last year. The market capitalisation of BSE-listed firms had surged Rs 77.66 lakh crore to Rs 4,41,95,106.44 crore in 2024. In 2023, the market capitalisation of BSE-listed companies climbed sharply by Rs 81.90 lakh crore.
