Rupee dials 91.1 to record IPO boom: 10 key highlights from the Indian stock market this year

Looking back, 2025 was far from an easy year for the Indian stock market bulls. Marking a year of "consolidation" after periods of solid returns, 2025 made investors rethink their portfolio strategy as rupee weakness plagued sentiment and the surge in gold and silver prices created a feeling of FOMO.

Hopes are high that 2026 will script a different and more positive story. Earnings strength, policy support and a robust macroeconomic setup are expected to be the key forces that could shape the stock market outlook this year. An upgrade in rating outlooks for the Indian stock market by several global brokerages has also re-ignited hopes of a more robust next year.

10 key Indian stock market highlights of 2025

Here is a look at the 10 big highlights from the Indian stock market this year that made headlines:

1. Worst performance in 3 decades among EMs

The Indian stock market has recorded its worst relative performance in nearly three decades in the emerging market space this year, amid a sharp underperformance vis-à-vis the Asian markets this year.

Among other major global markets, too, Indian benchmarks — Sensex and Nifty — have underperformed this year, marking a tough year for Indian investors. Sensex and Nifty have risen 9% and 10%, respectively, in 2025. South Korea's KOSPI, Hong Kong's Hang Seng, and US stock market's S&P 500 have delivered high double-digit gains of up to 72%, beating domestic market returns.

2. 50% tariff onslaught

A major factor behind the Indian stock market underperformance has been the tariff onslaught by US President Donald Trump. He imposed a steep 50% tariff on Indian exports to the US — one of the highest globally. Tariff remains a big overhang for the Indian stock market this year, driving the rupee to record lows and the highest-ever FII outflows.

3. FII selling hits unprecedented levels

2025 also turned out to be the year for the worst selling seen by FIIs since they started investing in the Indian stock market. In calendar year 2025, they have net sold Indian stocks worth ₹158,407 crore. The sustained selling by FIIs has contributed significantly to the sharp depreciation in the rupee this year.

"Improvements in fundamentals are likely to attract net FII inflows in 2026. Robust GDP growth and prospects of improvement in corporate earnings in 2026 augur well for positive FII flows in 2026," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

4. Rupee dials 91.1

Another major highlight of the year was the sharp slide in the Indian rupee. The domestic unit slumped past the 91 level against the US dollar in December this year to a record low of 91.14. With its nearly 6% fall against the greenback, the rupee emerged as the worst-performing Asian currency this year.

According to analysts, a rebound in the rupee is considered unlikely without a breakthrough in US-India trade negotiations.

As of last close, the rupee has regained ground over its all-time low level but continues to trade at 89.90.

5. Precious metals steal the show

Supported by robust industrial and investment demand, tightening inventories, geopolitical tensions and expectations of further US interest rate cuts, precious metals have been on a tear this year, outshining all other asset classes.

Silver prices have zoomed 165% and gold has risen 82% – putting them on track for the best yearly gain since 1979.

Nirpendra Yadav, Sr. Commodity Research Analyst at Bonanza, said that precious metals may remain strong next year as rate cuts are likely to be gradual, not aggressive,

central bank gold buying remains robust, and silver could continue outperforming if industrial demand holds.

6. IPO market sees highest-ever fundraising

The Indian primary market hit a milestone in 2025 as the fundraising via the mainboard initial public offerings (IPOs) hit the ₹1.75 lakh crore mark — the highest-ever equity capital raise on record.

According to an ET report, this was led by high-ticket IPOs as eight share sales accounted for 44% of the total funds raised this year among the 103 companies that listed in the Indian stock market this year.

7. GST 2.0 bonanza

In an effort to stimulate consumption, the government implemented several fiscal measures, including a moderation of income tax rates and a subsequent GST rate reduction. The GST rationalisation provided a near-term boost to demand across sectors such as automobiles, consumer goods, and manufacturing. Over the longer term, these GST cuts could also support sustained earnings growth, according to many brokerages.

8. Operation Sindoor

Despite the mid-year corrections, the defence index has seen a sharp 17% rise in an otherwise volatile year for equities as a slew of geopolitical events drove investors towards defence stocks. Operation Sindoor - precision strikes on terrorist infrastructure by the Indian Armed Forces in Pakistan and Pakistan‑occupied Kashmir (PoK) in early May 2025 in response to a terror attack in Pahalgam - remained a key trigger. The Russia-Ukraine war and Middle East instability also acted as catalysts.

9. GDP shoots up, inflation low

Despite several headwinds, the macroeconomic backdrop remained notably resilient. GDP surged above 8%, reaching multi‑quarter highs in Q2, while inflation fell below the Reserve Bank of India’s target range. Headline CPI inflation declined sharply over the past year, dropping from 5.5% in November 2024 to just 0.3% by October 2025.

10. RBI cuts rate for first time in 5 years

The RBI capitalised on the scenario of robust growth and low inflation to implement a series of rate cuts, cumulatively reducing policy rates by 125 basis points between January and December 2025. This year marked the first rate cut by the RBI in five years.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.