The year 2025 on Dalal Street was a tale of contrasts. While the headline indices, the Sensex and Nifty, posted single-digit gains, the underlying market dynamics were anything but quiet. Investors navigated a volatile landscape shaped by local and global crosscurrents, leading to frequent bouts of nervousness. Behind the modest benchmark returns, a significant churn unfolded: new investor favourites emerged, old ones faded, and capital markets witnessed unprecedented activity with startups going public becoming the norm.
Benchmark Underperformance and Stock-Specific Action
On the final trading day of Wednesday, the Nifty closed the year with a gain of 10.5%, while the Sensex advanced 9.1%. When compared to leading indices from other major global markets, both Indian benchmarks were notable underperformers. The action, however, was vibrant at the stock level. Among the 30 Sensex constituents, the top performers for the year were Maruti, Bajaj Finance, and the public sector defence giant Bharat Electronics.
On the losing side, Trent, the Tata Group company behind the popular Zudio retail chain, emerged as the top laggard. It was joined by other Tata Group heavyweight TCS and HCL Technologies among the poorest performers for the year.
Record-Breaking IPO Boom and Mutual Fund Milestone
The year 2025 will be remembered as a landmark period for India's primary market. Initial Public Offerings (IPOs) by startups became commonplace, and the definition of a 'large' issue was reset. An offer size of Rs 5,000 crore became the new benchmark, and plans to raise a staggering Rs 10,000 crore via an IPO no longer surprised street-smart investors.
The small and medium enterprise (SME) segment was exceptionally active, with a record-breaking 250+ companies launching IPOs on the dedicated BSE and NSE platforms. A report by Motilal Oswal Financial Services highlighted that overall, about 365 IPOs collectively mobilised nearly Rs 2 lakh crore, with large issues contributing a dominant 94% of this amount.
Parallelly, the mutual fund industry continued its robust growth, inching closer to a historic trillion-dollar milestone. By the end of November 2025, the total assets managed by the industry had surged 21% to Rs 80.8 lakh crore (approximately $900 billion). The systematic investment plan (SIP) route remained the engine of this growth, with monthly gross inflows climbing from Rs 26,459 crore in December 2024 to Rs 29,445 crore by November 2025.
Precious Metals Outshine; Bitcoin Struggles
In a dramatic shift, precious metals captivated investor attention in 2025. A combination of geopolitical tensions, strong investment demand from global central banks and ETF managers, and a weaker US dollar propelled gold and silver to multi-decade highs. Silver, in particular, experienced a spectacular rally.
Driven by a fast-expanding supply-demand mismatch, silver prices skyrocketed by 174% in the domestic market, leading one market veteran to quip on social media that it 'took the gold' among all investable assets for the year. Gold, with a formidable 78% return, followed in second place.
In stark contrast, the cryptocurrency leader, Bitcoin, failed to maintain its momentum from a stellar 2024. Despite supportive signals like softer US interest rates and backing from the American President, Bitcoin struggled throughout the year and closed marginally lower, highlighting the divergent paths taken by different asset classes.
Thus, 2025 proved that beyond the headline index numbers, India's financial markets were undergoing a profound transformation, setting new records and redefining investor preferences.
