Global markets were a rollercoaster in 2025, battered by wars, recessions, and policy shocks. But India’s share market emerged as an unlikely winner, smashing returns from fixed deposits and rewarding bold investors.
Picture this: Middle East flare-ups spiked oil to $120/barrel. Europe grappled with energy shortages. The U.S. Federal Reserve’s erratic rate cuts fueled dollar volatility. Amid this storm, why did Indian stocks thrive?
The answer lies in India’s insulated economy. Robust GDP growth at 7%, rising middle-class spending, and digital transformation propelled key indices. Sensex closed the year up 15.2%, Nifty at 14.8% – handily beating FD yields that hovered at 6.5-7.5%.
Renewable energy and pharma sectors shone brightest, with Adani Green and Sun Pharma delivering 25%+ returns. Mutual funds tracking these indices averaged 12-18% gains, drawing record retail participation.
Market veterans attribute success to tactical buying during corrections. ‘Fear created buying opportunities,’ notes veteran trader Priya Singh. FIIs, wary of developed markets, parked billions in India.
Looking ahead, with elections stabilizing and reforms accelerating, 2026 holds promise. Investors take note: In uncertain times, equities proved the real safe bet over FDs.