2025 was a very important year for both India’s economy and share market. Despite global uncertainties, India showed its strength through infrastructure push, manufacturing growth, consumption revival and rapid expansion of digital economy.

India remained the world’s fastest-growing major economy, with inflation hitting records and expectations of rate cuts boosting market sentiment.

Sensex-Nifty returns remained limited, but the IPO market performed brilliantly. Domestic investors, SIP inflows and “buy the dip” strategy supported the market, while FII flows remained volatile. Capex-led growth, services exports and RBI’s cautious policy maintained macro stability. The outlook for 2026 is cautiously positive, where returns will depend on earnings and stock picking.