Indian Markets End 2025 on a Positive Note: Nifty, Sensex Snap 4-Day Losing Streak; India VIX at Year Low

Market Update at 04:00 PM: Indian equity markets ended the final trading session of 2025 on a positive note, snapping a four-day losing streak, as strong buying in metal stocks lifted benchmark indices. Sentiment improved after the government announced a three-year import tariff on select steel products to curb cheap imports, particularly from China.

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

Despite weakness over the past few sessions due to foreign fund outflows and thin year-end trading, Indian markets ended 2025 with solid annual gains. The Nifty and Sensex rose 10.51 per cent and 9.08 per cent, respectively, marking their tenth consecutive year of positive returns.

Market volatility remained subdued, with the India VIX hovering around 9.4, its lowest level at the end of a calendar year. Strong domestic inflows, resilient corporate earnings, and a stable macroeconomic environment helped keep volatility and risk premiums low, even as foreign investors continued to reduce exposure to Indian equities.

Metal stocks led the rally on the last trading day of the year. The Nifty Metal index climbed 1.43 per cent after the government imposed import tariffs on select steel products. JSW Steel jumped 4.8 per cent, while Tata Steel gained 2.4 per cent, making them among the Top Gainers on the Nifty 50.

Looking back at 2025, Indian equity markets remained largely muted for most of the year amid concerns over sluggish earnings growth, a weakening rupee, rising trade frictions with the US, and record foreign investor outflows. The benchmark indices returned to record highs in November after a 14-month gap, supported by Tax relief measures, interest rate cuts by the Reserve Bank of India, and early signs of improving corporate profitability. However, the momentum faded in December, and the rally could not be sustained through year-end.

Among individual stocks, RITES rose 2.33 per cent after securing an order worth USD 3.6 million from a Zimbabwean company. Dynacons Systems surged 11.42 per cent after winning a software project from the Reserve Bank of India valued at Rs 2.49 billion.

Sectorally, 10 out of 11 indices ended the session in positive territory. The Nifty Media index emerged as the top performer, rising 1.5 per cent, its strongest gain in the past 15 days. The Nifty Energy and Nifty Metal indices advanced by over 1.4 per cent each. In contrast, the Nifty IT index was the only sector to close lower, slipping 0.03 per cent and extending losses for a sixth consecutive session.

Broader markets outperformed the frontline indices, reflecting improved risk appetite. The Nifty Midcap 100 gained 0.95 per cent, while the Nifty Smallcap 100 advanced 1.11 per cent.

Reliance Industries contributed the most to the Nifty’s gains, adding 43.23 points, followed by Kotak Mahindra Bank at 16.22 points and Axis Bank at 14.26 points. On the downside, Tata Consultancy Services dragged the index by 8.24 points, while Infosys and Tech Mahindra weighed with declines of 2.84 points and 1.89 points, respectively.

Market breadth was firmly positive at the close. Of the 3,250 stocks traded on the NSE, 2,222 advanced, 936 declined, and 95 remained unchanged. A total of 68 stocks touched their 52-week highs, while 83 stocks hit 52-week lows. Additionally, 74 stocks were locked in Upper Circuits, while 60 stocks were in Lower Circuits.

Market Update at 09:39 AM: Indian equity markets began the final trading session of the calendar year 2025 on a firm footing, supported by buying interest in metal and chemical stocks. Despite mixed global cues, domestic benchmarks traded in positive territory during early hours.

The Nifty50 index is on track to close higher for the 10th consecutive calendar year, gaining around 10 per cent so far in 2025. The Sensex has also delivered a solid performance, rising about 8.3 per cent during the year.

As of 9:20 AM, the Nifty50 was trading at 26,012.30, up 72.50 points or 0.29 per cent. The Sensex stood at 84,867.21, higher by 192.13 points or 0.23 per cent.

On the Sensex, Tata Steel, BEL, Trent, Power Grid, Axis Bank, Titan, HUL, and NTPC emerged as the top gainers. Meanwhile, Bajaj Finserv, TCS, M&M, Bajaj Finance, Eternal, and Bharti Airtel were among the key laggards.

The broader market outperformed the frontline indices. The Nifty Midcap 100 index rose 0.58 per cent, while the Nifty Smallcap index advanced 0.52 per cent, indicating continued investor interest beyond Large-Cap stocks.

Among sectoral indices, the Nifty Metal index led the gains, climbing over 1 per cent. Nifty Media and Nifty Chemicals were the other notable gainers during the session.

In contrast, Asia-Pacific markets traded lower on the holiday-shortened final trading day of the year. Australia’s S&P/ASX 200 slipped 0.17 per cent, Hong Kong’s Hang Seng declined 0.42 per cent, and China’s CSI 300 remained flat. Markets in Japan and South Korea were closed, while trading in Hong Kong and Australia ended early.

Pre-Market Update at 7:44 AM: Indian equity benchmarks Sensex and Nifty 50 are likely to open flat on Wednesday, December 31, the final trading session of 2025, amid thin volumes and muted global cues. Gift Nifty was trading marginally higher by 14 points, or 0.09 per cent, around the 26,117 level, indicating a subdued start for domestic markets. Most Asian markets such as Japan, South Korea, and Thailand are closed today due to New Year’s Eve, adding to low trading activity across the region.

Foreign Institutional Investors remained net sellers on Tuesday, December 30, selling equities worth Rs 3,844.02 crore and extending their selling streak to a sixth consecutive session. In contrast, Domestic Institutional Investors continued their strong buying momentum, purchasing equities worth Rs 6,159.81 crore, marking their 47th straight session of net inflows.

Indian equity markets ended nearly flat on Tuesday amid muted global cues and thin year-end trade. The Nifty 50 slipped 3.25 points to close at 25,938.85, while the Sensex eased 20.46 points to end at 84,675.08. Bank Nifty outperformed, gaining 0.41 per cent to close above the 59,000 level. Persistent foreign fund outflows and broad-based profit booking weighed on sentiment, with the Nifty down nearly 0.9 per cent over the last three sessions and the Sensex falling over 1 per cent across four sessions.

On the sectoral front, five of the eleven indices ended higher. Nifty Metal led the gains with a rise of 2.03 per cent, while PSU Bank and Auto stocks advanced over 1 per cent each. Realty and IT stocks underperformed, declining 0.84 per cent and 0.74 per cent, respectively. Broader markets lagged the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices slipping 0.15 per cent and 0.28 per cent.

US equity markets ended Tuesday’s volatile session slightly lower as losses in technology and financial stocks outweighed gains in communication services. The Dow Jones Industrial Average fell 94.87 points, or 0.20 per cent, to close at 48,367.06. The S&P 500 slipped 9.50 points, or 0.14 per cent, to 6,896.24, while the Nasdaq Composite declined 55.27 points, or 0.24 per cent, to settle at 23,419.08.

Minutes from the US Federal Reserve’s December policy meeting showed that the central bank opted for a rate cut only after extensive discussions over potential economic risks. The Fed is scheduled to meet again on January 27–28, and markets largely expect policy rates to remain unchanged.

The US dollar strengthened on Tuesday following the release of the Fed minutes, with investors closely analysing signals on future interest rate movements. The dollar index rose 0.19 per cent to 98.19. Despite the recent rise, the dollar is on track for its weakest annual performance since 2017, down about 9.5 per cent in 2025.

Gold and silver prices edged lower on Wednesday but remained set for historic annual gains. Spot gold slipped 0.3 per cent to USD 4,334.20 per ounce after hitting an all-time high of USD 4,549.71 last week. US February gold futures declined 1 per cent to USD 4,346.50 per ounce, while silver fell 1.6 per cent to USD 75.09 per ounce.

Oil prices are heading for their steepest annual decline since the pandemic-hit year of 2020, pressured by concerns over excess supply. US benchmark West Texas Intermediate slipped below USD 58 per barrel and is down nearly 20 per cent in 2025, while Brent crude for March delivery hovered above USD 61 per barrel. Rising output from OPEC and other major producers, coupled with slower global demand growth, has reinforced fears of a prolonged supply glut. In the near term, markets remain focused on an upcoming OPEC meeting, bearish US industry data, and ongoing geopolitical developments.

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Disclaimer: The article is for informational purposes only and not investment advice.