Equities vs Gold vs Silver:As the final trading sessions of 2025 fade into history, domestic financial markets leave behind a story shaped by sharp contrasts
and selective resilience. While benchmark indices Sensex and Nifty50 largely held their ground, significant divergences emerged beneath the surface -- from a spectacular surge in silver to sustained pressure on smallcap stocks. It was a year in which traditional equity leadership was tested, Indian investors stepped in as foreign money flowed out, and non-equity assets briefly took centre stage. The 50-scrip basket ended the year with a gain of nearly 10 per cent despite global volatility, and the Nifty Midcap index rose a modest 4 per cent, while smallcaps slipped into negative territory with a decline of around 9 per cent. Beyond equities, asset class performance diverged sharply, with silver doubling investors money -- rallying over 100 per cent -- while gold gained about 60 per cent and Bitcoin ending the year marginally lower. Strong domestic institutional inflows of Rs 7.3 lakh crore helped offset foreign outflows of about Rs 2.8 lakh crore, underscoring how capital flows, sectoral shifts and asset allocation choices defined market outcomes in 2025.
Nifty vs other asset classes
When compared with other asset classes, equities delivered moderate returns. While the Nifty50 rose close to 10 per cent, silver emerged as the standout performer, surging by an impressive 102 per cent during the year. Meanwhile, the yellow metal also posted strong gains, rising around 60 per cent.
Cryptocurrencies, however, failed to keep pace. Bitcoin ended the year marginally lower, with a decline of about 2 per cent, while most global currencies delivered negative returns.
Nifty50 gainers and losers
Among Nifty stocks, Bajaj Finance, Maruti Suzuki, Eicher Motors, SBI Life Insurance and Shriram Finance were the biggest gainers, posting returns in the range of 44 to 51 per cent in 2025.
On the downside, stocks such as Tata Motors, TCS, Infosys, Power Grid and BPCL featured among the top laggards, with losses ranging between 14 and 43 per cent on a year-on-year basis.
Midcap and smallcap trends
In the midcap space, L&T Finance stood out with a sharp rally of about 121 per cent, followed by Aditya Birla Capital, which more than doubled. Muthoot Finance, AU Small Finance Bank and V-Guard Industries also delivered strong returns.
However, midcap stocks such as IREDA, Kalyan Jewellers, Olectra Greentech, Premier Energies and Oberoi Realty ended the year among the top losers.
Smallcap stocks saw sharp divergence. Navin Fluorine International, Laurus Labs, Cera Sanitaryware, Narayana Hrudayalaya and Hindustan Copper gained between 47 and 70 per cent.
On the flip side, Ola Electric, Tejas Networks,, Firstsource Solutions, Newgen Software Technologies and Whirlpool Of India witnessed steep declines, with some stocks falling as much as 60 per cent.
Sectoral performance
From a sectoral perspective, PSU banks emerged as the biggest winners in 2025, rising around 25 per cent. Auto stocks gained about 21 per cent, while metal and private banking stocks also performed well.
Meanwhile, sectors such as energy, pharmaceuticals, FMCG and IT ended the year in the red. Realty was the worst-performing sector, with the Nifty Realty index falling nearly 18 per cent over the year.
PSU banks, realty stocks and fund flows
Among PSU banks, Indian Bank, Canara Bank, Bank of India, Union Bank of India and SBI delivered strong gains. In contrast, real estate stocks remained under pressure, with Anant Raj down 41 per cent year-on-year, followed by declines in Brigade Enterprises, Oberoi Realty, Godrej Properties and Lodha Developers.
Foreign institutional investors (FIIs) continued to be net sellers in 2025, offloading shares worth around Rs 2.8 lakh crore. However, domestic institutional investors (DIIs) more than compensated for the outflows, pumping in about Rs 7.3 lakh crore during the year.
Rupee and currency performance
The Indian rupee remained an underperformer in 2025, declining by around 5 per cent against the US dollar.
In contrast, the Russian rouble gained about 48 per cent, while currencies of Brazil, South Africa, Malaysia, Thailand and Taiwan also posted gains.
Currencies such as the Philippine peso and Indonesian rupiah ended the year on a weaker note.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
