The financial year 2025 was marked by significant shifts and milestones. The new income tax bill was proposed, foreign institutional investor outflows reached new highs, and India witnessed its largest-ever initial public offering in the form of the Hyundai Motor India IPO.
Alongside this, Narendra Modi secured a third term, while Donald Trump's return to power introduced fresh tariff policies that stirred global uncertainty.
In the midst of these developments, the benchmark NSE Nifty 50 Index, which had reached record levels during the fiscal, saw a decline of nearly 10% after its peak on Sept. 27, 2024.
Where The Nifty Stood Globally
The Nifty delivered positive returns for its investors in fiscal 2025, outperforming certain Asian indices such as the Nikkei 225 and the Korea Composite Stock Price Index.
Hang Seng remained at the top of the leaderboard, delivering a staggering 41.61% return.
In Focus: Large Caps
Bharat Electronics Ltd. was the best performing stock on the Nifty 50 Index this financial year. The public sector aerospace and defence electronics company returned nearly 50%.
IndusInd Bank Ltd., which has been in the limelight ever since its portfolio derivatives discrepancy was alerted saw a sharp fall of 58% in the fiscal, cementing its position as the biggest loser in the 50-stock index.
All Hail Mid Caps
The Nifty Midcap 100 also saw a defence company, namely Mazagon Dock Shipbuilders Ltd. deliver the highest returns in FY25. Mazagon Dock, which had acquired a 'Navratna' status this fiscal, turned multibagger, rising nearly 184%.
Debt-ridden Vodafone Idea Ltd. was at the helm of the losers, falling almost 49% in the year.
Small Caps, Big Returns
The Nifty Smallcap 100 index saw electronic manufacturer PG Electroplast Ltd. deliver returns exceeding 450%. Yet another defence stock turned a multibagger, with Garden Reach Shipbuilders and Engineers stock surging over 120% in financial year 2025.
On the flip side, the biggest loser in the index was Sonata Software, which fell 52% in the fiscal.
How Broader Markets Fared
The midcap index overperformed the Nifty 50's 5.6% gains, posting 7.48% growth. The broader market index, the NSE Nifty 500, and the smallcap index marginally underperformed the benchmark.
Sectoral Breakdown
Half of the 12 sectoral gauges compiled by the National Stock Exchange advanced, led by NSE Nifty Financial Services Index that gained 19.47% percent. The NSE Nifty Media Index was the top sectoral loser, down 17.85% percent.
Finance In The Spotlight
The NSE Nifty Financial Services index rose for the fourth year in a row.
Media's Shine Dims
The worst performing index, NSE Nifty Media, snapped its FY24 gains to slip nearly 18% in the fiscal.
The Cash Flow Picture
Foreign institutional investors sold $127 billion in the fiscal, marking the highest ever sell-off India's witnessed.
IPO Rush
Fiscal 2025 has been rightfully termed the 'Year of IPOs'. India saw Hyundai Motor launch the largest book build offer the nation has seen, followed by Swiggy and NTPC Green Energy.
10-Year Bond Yields Continue Fall
At the end of fiscal 2025, the 10-year yield extended its decline from the last year, slipping to 6.70%.
Rupee Versus Asian Peers
The rupee was the second best performing Asian currency this fiscal, though it slipped 3.15% against the US Dollar. The best performing currency was the Hong Kong Dollar. All Asian currencies witnessed a decline as compared to the greenback.
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