Indian equity markets concluded 2025 on a positive note with a strong rally in the final trading session, led by metal and energy stocks amid government support measures and value buying. However, the year was marked by underperformance relative to global peers, driven by record FII outflows, rupee depreciation, and trade uncertainties, though domestic inflows provided resilience. Key themes included sectoral recoveries, commodity surges, and optimism for policy-driven growth in 2026.

Markets anticipate a flat-to-positive opening on the final trading day of 2025, supported by a potential gap-up in GIFT Nifty, though tempered by persistent FII outflows.

Key Themes & Picks

• GIFT Nifty signals a gap-up opening despite mixed global cues.

• Metals, banking, and autos lead on demand and festive tailwinds.

• Key picks: Tata Steel, Bajaj Auto, and Indian Bank highlighted.

• Persistent FII outflows for six sessions cap broader upside.

• Overall sentiment leans bullish in cyclical sectors.

The Indian markets closed marginally lower on December 30, 2025, in thin year-end trading amid persistent foreign fund outflows and holiday-shortened volumes, reflecting cautious sentiment. Key themes centered on India's milestone of becoming the world's fourth-largest economy, strong macroeconomic performance with high growth and low inflation, and pre-Budget consultations for sustained expansion. International cues from the US remained subdued with slight declines in major indices.

• India surpasses Japan to become fourth-largest economy at $4.18 trillion GDP.
• PM Modi holds pre-Budget meeting with economists on growth strategies.
• Markets end flat to lower amid low volumes and FII selling pressure.