Equities End 2025 on Strong Note, Snap Losing streak in Year-end Rally

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

December 31, 2025 at 11:51 AM IST

Indian equity markets wrapped up the final trading session of the calendar year on a positive note, snapping a four-session losing streak as bargain hunting lifted benchmarks despite lingering concerns over foreign fund outflows. The rally was broad-based, with gains across most sectors barring IT, reflecting renewed risk appetite at year-end. The Nifty50 and Sensex closed higher on Wednesday, supported by buying in metals, energy and banking stocks, while technology shares continued to lag.

For the full year, Indian equities delivered their tenth consecutive year of gains, with the Nifty 50 rising 10.5% and the Sensex advancing 9.1% in 2025. Among Sensex stocks, Tata Steel, Kotak Mahindra Bank, Reliance Industries, Titan and Axis Bank led the gains, while TCS, Tech Mahindra, Infosys, Bajaj Finance and Sun Pharma weighed on the indices. Broader markets outperformed, with the Nifty MidCap 100 and SmallCap 100 gaining 0.95% and 1.11%, respectively.

Top Movers of the Day

Vodafone Idea shares plunged 14.9% to ₹10.26, hitting the lower circuit after reports on phased AGR dues payments raised near-term cash flow concerns despite longer-term restructuring relief.

The BSE Oil & Gas index jumped nearly 3%, led by HPCL, BPCL and IOC up 3–6%, on a positive sector outlook and stable margin expectations.

Zydus Wellness shares surged 10.4% after Motilal Oswal initiated coverage with a ‘Buy’, citing attractive risk–reward and strong brand portfolio.

ZF Steering Gear shares rallied 15%, emerging as a top gainer in the final trading session of 2025 amid strong buying interest.

Bharat Forge stock gained 2.5% to a fresh 52-week high after securing a ₹1,661.9 crore defence contract to supply carbines to the Indian Army.

Shares of KPI Green Energy climbed 8.1% following a bulk deal purchase, signalling institutional interest.

Shares of RITES jumped 7.4% after bagging multiple international orders from Africa, strengthening its overseas order book.

Consumer durables shares of LG India, Crompton, Whirlpool touched 52-week lows on growth concerns, with long-term underperformance weighing on sentiment.

Privi Speciality Chemicals shares fell 13.2% amid heavy volumes, marking one of the sharpest declines of the session.

Indus Towers hit a 52-week high, extending December gains alongside selective strength in telecom infrastructure plays.

Futures & Options
Nifty January 2026 futures settled at 26,304.80, trading at a premium of 175.2 points to the spot Nifty, which rose 190.75 points or 0.74% to close at 26,129.60. Volatility eased, with India VIX declining 2.09% to 9.48, while Vodafone Idea, Indus Towers and SAIL were the most actively traded stock futures. The January derivatives contracts are set to expire on 27 January 2026.

Bonds
Government bond yields edged higher on Wednesday, the final trading session of 2025, as quarter-end positioning and the Reserve Bank of India’s exclusion of the previous benchmark paper from its open market purchases weighed on sentiment. The benchmark 10-year yield closed at 6.5881%, up from 6.5786% on Tuesday, reversing part of last week’s decline as traders factored in heavier near-term state debt supply of about ₹355 billion and persistent liquidity tightness.

Forex
The rupee ended December with a second consecutive monthly decline, after briefly slipping past the 91-per-dollar mark for the first time before RBI intervention helped stabilise the currency. The rupee closed at 89.87 per dollar, down 0.1% on the day, taking December losses to 0.5%, while it depreciated 4.7% in 2025, marking its steepest annual fall in three years amid sustained dollar demand and capital outflows.

Crypto
Crypto markets edged higher, showing early signs of recovery after weeks of sustained selling pressure, supported by improved sentiment into the year-end. Bitcoin rose 1.32% to $88,343 on healthy trading volumes of about $35 billion, while Ethereum gained 0.97% to $2,969. Most major altcoins traded in the green, although Dogecoin lagged, as investors remained cautiously optimistic amid uncertainty over US Federal Reserve rate cuts in 2026 and broader liquidity conditions.

US Stock Futures
US stock futures traded lower early Wednesday, pointing to a softer open on the final trading day of the year, as selling pressure in technology and artificial intelligence stocks persisted. Nasdaq 100 futures led losses, down 0.43%, while S&P 500 futures slipped 0.28% and Dow Jones Industrial Average futures eased 0.14%, extending the recent pullback after the S&P 500 fell for a third consecutive session.

US Treasury Notes
US Treasury yields edged lower today with the benchmark 10-year note hovering around 4.12%, as investors weighed the Federal Reserve’s policy outlook after minutes from its December meeting showed a divided stance on further rate cuts in 2026. The 10-year yield is down nearly 45 basis points in 2025, capping a strong year for bonds supported by earlier easing by the Fed.

Top News