Post Market Update Today Dec 31: Indian Markets End 2025 on a Positive Note: Sensex Rallied Over 500 Points; India VIX at Year Low, Metal Stocks Surge on Import Tariffs

At the closing bell, the Nifty 50 closed higher by 190.75 points, or 0.74%, at 26,129.60, while the Sensex surged 545.52 points, or 0.64%, to settle at 85,220.60. The benchmark indices snapped a 4 day losing streak. The Bank Nifty mirrored the performance of Nifty by advancing 0.69% and closing above the level of 59,500. 

The benchmark 50-stock index (Nifty 50) rose during the session after slipping nearly 1% over the previous four sessions, as foreign fund outflows weighed on markets amid thin year-end trading. Despite the recent weakness, Nifty and Sensex ended up 10.51% and 9.08% respectively in 2025, putting both indices on track for their tenth straight year of annual gains.

On the last day of the calendar year 2025, the Nifty Metal index rose 1.45%, emerging as one of the top sectoral gainers after the government announced import tariffs on select steel products to curb cheap imports from China. JSW Steel and Tata Steel led the rally, jumping 4.8% and 2.4%, respectively, and featured among the top gainers on the Nifty.

Market Overview 2025

Indian equity markets remained largely muted through most of 2025, weighed down by worries over sluggish earnings growth, a weakening rupee, rising trade frictions with the US, and unprecedented foreign investor outflows.

The benchmark indices finally returned to record highs in November after a 14-month break, supported by tax relief measures, interest rate cuts by the Reserve Bank of India, and early indications of improving corporate profitability in Q2FY26. However, the momentum faded in December amid persistent selling by FIIs.  

Meanwhile, market volatility, as measured by the India VIX, hovered close to the historic lows seen earlier in the year. Strong domestic inflows, resilient earnings, and a stable macroeconomic environment helped keep uncertainty in check and risk premiums compressed, even as foreign investors continued to sell.

Stock-Specific Highlights

Among individual stocks,

• RITES share price jumped 2.33% on winning an order worth $3.6 million from a Zimbabwean company
• IT services and systems integration company Dynacons Systems share price surged 11.42% after securing a software project from the Reserve Bank of India worth 2.49 billion rupees

Nifty Media - Top Gainer

On the sectoral front, 10 out of all 11 sectoral indices closed in positive territory. The Nifty Media index emerged as the top-gaining sector with gains of 1.5%, recording the biggest gains in the last 15 days. Additionally, the Nifty Energy and Nifty Metal indices advanced by over 1.4%. On the other hand, the Nifty IT index was the only losing sector, declining by 0.03%, extending losses for 6 consecutive trading sessions

Broader Markets End Positive

On Wednesday, the broader market indices outperformed the frontline gauge. The Nifty Midcap 100 index closed up 0.95%, and the Nifty Smallcap 100 advanced 1.11%. 

Nifty 50: Top Pullers and Draggers of the Day

The key drivers of the index gains were:

• Reliance Industries: +43.23 points
• Axis Bank: +14.26 points
• Kotak Mahindra Bank: +16.22 points

On the other hand, these stocks dragged the index:

• Tata Consultancy Services: -8.24 points
• Infosys: -2.84 points
• Tech Mahindra: -1.89 points

Market Breadth

As of December 31, 2025, market breadth was in favour of advancing stocks. Out of 3,250 stocks traded on the NSE, 2,222 advanced, 936 declined, and 95 remained unchanged. 

A total of 68 stocks touched their 52-week highs, while 83 hit their 52-week lows. Additionally, 74 stocks were locked in their upper circuits, whereas 60 stocks were in lower circuits. 

Disclaimer: The article is for informational purposes only and not investment advice.