The National Stock Exchange's (NSE) flagship index, the Nifty 50, has cemented its position as the undisputed top performer over the past year. According to an official NSE report, the benchmark index significantly outpaced all other major indices, delivering robust double-digit returns to investors while broader markets showed more modest growth.
Benchmark Outperformance and Index Returns
The Nifty 50 index surged by 10.5 per cent in the one-year period between December 31, 2024, and December 31, 2025. In absolute terms, the index climbed from a closing level of 23,645 to 26,130, registering a substantial gain of 2,485 points. This performance made it the best-performing major equity index on the exchange.
In stark contrast, the Nifty Next 50 index, which represents the fifty companies after the Nifty 50, managed a modest rise of only 2.0 per cent. It gained 1,376 points to close at 69,365, up from 67,988 a year earlier. The Nifty 50 USD index, which accounts for currency fluctuations, increased by 5.3 per cent, moving from 9,570 to 10,081.
Broader Market and Segment-Wise Performance
The broader market indices also posted positive returns but failed to match the benchmark's momentum. The Nifty 500, representing a wider universe of stocks, advanced by 6.7 per cent, rising from 22,375 to 23,872. The Nifty Midcap 150 index moved up by 5.4 per cent, increasing from 21,141 to 22,277.
However, the small-cap segment faced significant headwinds and underperformed. The Nifty Smallcap 250 index declined by 6.0 per cent, falling sharply from 17,752 to 16,685, marking a drop of 1,068 points over the year. The Nifty Total Market index, reflecting the overall market, gained 6.0 per cent, rising from 12,633 to 13,394.
Currency Movements and Market Capitalisation Trends
Currency dynamics played a notable role in dollar-denominated returns. The USD-INR exchange rate increased from 85.6 to 89.9, indicating a depreciation of the Indian rupee by 5.0 per cent during the year. Globally, the Dollar Index saw a sharp decline of 9.4 per cent, falling from 108.5 to 98.2.
On the valuation front, the total market capitalisation of all companies listed on the NSE grew from ₹439 lakh crore at the end of December 2024 to ₹474 lakh crore by December 31, 2025. This marks a healthy increase of 7.9 per cent in overall market cap. Interestingly, the market capitalisation to GDP ratio moderated, declining from 138 per cent to 135 per cent, a drop of 279 basis points.
The report underscores a year where large-cap stability, led by the Nifty 50, provided strong returns, while mid and small-cap segments presented a mixed and more challenging landscape for investors.
