Indian Markets End 2025 on a High as Sensex, Nifty Snap Losing Streaks
| Index | Price | Change | % Chg |
| Nifty 50 | 26,129.60 | 190.75 | +0.74% |
| Nifty Bank | 59,581.85 | 410.60 | +0.69% |
| Nifty Financial | 27,382.80 | 19.30 | +0.07% |
| BSE SENSEX | 85,220.60 | 545.52 | +0.64% |
Indian equity markets wrapped up the final trading session of calendar year 2025 on a strong and confident note, snapping recent losing streaks as broad-based buying lifted benchmark indices. The Sensex jumped over 546 points, while the Nifty 50 closed decisively above the 26,100 mark, supported by a rally in metal stocks, renewed interest in mid- and small-cap shares, and multiple positive domestic cues.
After five consecutive sessions of decline, the Sensex climbed 545.52 points, or 0.64 percent, to settle at 85,220.60. During the day, the index touched an intraday high of 85,437.17, reflecting strong buying momentum before some profit-booking emerged in the final hour. The Nifty 50 gained 190.75 points, or 0.74 percent, to close at 26,129.60, marking its first advance after four straight sessions of losses.
Overall, Indian equities ended 2025 with high single-digit to low double-digit annual gains, with both Sensex and Nifty rising close to 10 percent over the year.
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Year-End Rally Reflects Improving Risk Appetite and Policy Support
The year-end rally was underpinned by improving risk appetite, aided by relatively stable global cues and encouraging domestic developments. A key sentiment booster came from the Union Cabinet’s approval of fresh adjusted gross revenue (AGR) relief for Vodafone Idea, which eased near-term solvency concerns for the telecom operator.
Under the relief package, AGR dues of about Rs 87,695 crore have been frozen, with a five-year moratorium on payments, pushing repayments to the FY32–41 period. This move lifted sentiment not only for Vodafone Idea but also for the broader telecom value chain, including infrastructure players such as Indus Towers.
Market participants said the decision reduced a major overhang and reinforced confidence in policy support for stressed sectors.
Metal Stocks Lead as Safeguard Duty Sparks Buying
Metal stocks emerged as the biggest drivers of the rally after the government announced a three-year safeguard duty of up to 12 percent on select steel imports. The move raised expectations of better pricing power and earnings visibility for domestic steel producers.
Shares of JSW Steel surged 4.88 percent, Tata Steel rose 2.35 percent, while other metal counters also traded firmly. Among Sensex stocks, Tata Steel featured prominently among the top gainers.
Ajit Mishra, SVP – Research at Religare Broking, said, “Market sentiment was primarily driven by domestic policy developments and stock-specific action. The government’s decision to impose safeguard duties on select steel imports boosted sentiment in the metal space, enhancing earnings visibility for domestic producers.”
Mid- and Small-Cap Stocks Join the Rally
Buying interest was not limited to large-cap stocks. Mid- and small-cap indices rose up to 1 percent, adding depth to the rally and improving overall market breadth. Cyclicals, capital goods, and rate-sensitive stocks saw renewed interest, supported by signs of steady domestic demand.
Recent Index of Industrial Production (IIP) data pointing to sustained manufacturing momentum toward the end of 2025 further reinforced confidence in India’s growth outlook, encouraging investors to selectively add exposure to broader market stocks.
Bank Nifty, Sectoral Indices End in the Green
The Bank Nifty index gained 0.69 percent to close at 59,581.85, despite opening in the red. Buying in private banks such as Kotak Mahindra Bank, which rose 2.34 percent, helped support the index.
On the sectoral front:
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Oil & Gas led the gains, rising 2.66 percent
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Consumer Durables climbed 1.56 percent
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Media, Metal, and Auto indices also ended higher
The IT sector was the lone laggard, slipping 0.30 percent, reflecting continued caution toward technology stocks.
Top Gainers and Losers Reflect Sector Rotation
Among Nifty stocks, the top gainers were:
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JSW Steel (+4.88%)
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ONGC (+2.46%)
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Tata Steel (+2.35%)
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Kotak Mahindra Bank (+2.34%)
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Reliance Industries (+1.90%)
The top losers included:
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TCS (-1.13%)
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Tech Mahindra (-0.85%)
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Grasim (-0.31%)
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Bajaj Finance (-0.28%)
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Infosys (-0.23%)
This divergence highlighted ongoing sector rotation, with investors favouring cyclicals and commodities over defensives and IT.
Cooling Volatility and Softer Crude Add to Optimism
Market volatility eased during the session, with India VIX declining over 3 percent to around 9.4, signalling reduced investor anxiety. Lower volatility typically supports equity risk-taking.
Crude oil prices also provided relief. Brent crude slipped about 0.10 percent to $61.27 per barrel, helping ease inflationary concerns for an oil-importing economy like India.
Technical View: Nifty Near Key Resistance Zone
From a technical perspective, the Nifty approached the upper end of its consolidation range near 26,200. Analysts noted that while the index closed strong, heavy call writing around the 26,000 strike continues to act as a near-term resistance.
Ajit Mishra said, “A decisive breakout above 26,200 could trigger the next leg of upward momentum, while failure to do so may lead to renewed profit-taking. We maintain a positive yet cautious outlook, with a preference for banking, auto and metal stocks.”
Market Breadth Strong in Year-End Session
Market breadth was firmly positive:
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Advancers: 2,222
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Decliners: 936
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52-week highs: 68
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52-week lows: 83
This reflected broad participation in the rally, particularly in mid- and small-cap stocks.
2025 Wrap: A Decade of Gains for Nifty
With this close, the Nifty sealed a rare 10-year winning streak, ending 2025 with around 10 percent gains despite multiple challenges, including geopolitical tensions, global trade uncertainties, rupee volatility, and valuation concerns.
As markets head into 2026, investors are likely to remain selective, balancing optimism around India’s growth story with caution over external risks and earnings visibility.
Stocks in F&O Ban List Remain Absent, Several Counters Nearing MWPL Threshold
The derivatives segment saw no stock entering the NSE F&O ban list in the final trading session of 2025, indicating controlled speculative activity despite the sharp year-end rally. The absence of securities in the ban list reflects balanced participation across futures and options, even as select stocks witnessed elevated open interest.
However, several stocks moved closer to the Market-Wide Position Limit (MWPL) threshold and could enter the ban list if aggressive derivative positions persist in the coming sessions.
Stocks nearing F&O ban (Possible Entrants based on MWPL):
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IRCTC
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SAIL
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Kaynes Technology
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CONCOR
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Bandhan Bank
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RVNL
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RBL Bank
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Vodafone Idea
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Adani Enterprises
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LIC Housing Finance
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NBCC
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Dixon Technologies
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NMDC
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Crompton Greaves Consumer
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Mazagon Dock Shipbuilders
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HUDCO
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Patanjali Foods
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IEX
Market participants typically exercise caution in these stocks, as any breach of the MWPL limit can restrict fresh derivative positions and lead to heightened volatility or sudden price swings.
Traders said the absence of stocks in the ban list during a strong closing session suggests measured risk-taking, rather than speculative excess, as investors positioned themselves for the start of 2026.
FAQs Sensex Jumping 546 Points And Nifty Firm Above 26,100
Why did the Sensex and Nifty rally sharply on the final trading day of 2025 despite global market weakness?
The rally was driven primarily by domestic triggers such as safeguard duties on steel imports, value buying after recent declines, easing crude oil prices, and strong participation in metal and banking stocks, which outweighed mixed global cues.
How does the government’s safeguard duty on steel imports impact Indian metal stocks and earnings visibility?
The three-year safeguard duty improves pricing power for domestic steelmakers by limiting low-cost imports, supporting margins, cash flows, and medium-term earnings visibility for companies like Tata Steel, JSW Steel, and Jindal Steel.
What does Nifty closing above 26,100 indicate for market direction going into 2026?
A close above 26,100 signals improved sentiment but not a confirmed breakout, as heavy resistance remains near 26,200. Sustained buying above this zone will be crucial for establishing a new upward trend in early 2026.
Why did mid-cap and small-cap stocks outperform benchmarks in the year-end session?
Mid- and small-cap stocks benefited from bargain hunting after recent corrections, selective sector rotation, and improved risk appetite as volatility cooled, leading to broad-based participation beyond heavyweight stocks.
How does the absence of stocks in the F&O ban list reflect market conditions?
An empty F&O ban list indicates balanced derivative positioning and controlled speculation, suggesting that the rally was driven more by cash-market participation and genuine buying interest rather than excessive leverage.
What role did falling crude oil prices and India VIX play in supporting equities?
Lower crude prices helped ease inflation concerns, while a decline in India VIX signaled reduced market anxiety, encouraging investors to increase equity exposure during the year-end rebound.
What risks should investors watch despite the strong year-end market close?
Key risks include sustained foreign institutional investor outflows, external geopolitical uncertainties, resistance at higher index levels, and earnings growth failing to match elevated valuations as markets enter 2026.
