The Indian stock market experienced a roller-coaster ride in the financial year ended March 31, 2025, as aggressive selling by overseas fund managers in the second-half of the year weighed on sentiment.

Despite this, the Nifty 50 index managed to close FY2025 with a 5.3% gain, while the Nifty Midcap 150 and Smallcap 250 rose 5.73% and 2.32%, respectively. Foreign portfolio investors (FPIs) offloaded shares worth Rs 1.25 lakh crore during the year.

The resilience of Indian equities was driven by strong domestic investor participation, with mutual funds and retail investors pumping in a record Rs 6 lakh crore into the market.

Sectorally, the Nifty Defence index emerged as the top performer, surging 33% in FY2025, while Financials and Healthcare indices recorded gains of 18% and 12%, respectively. On the flip side, Media, Energy, PSU Banks, and Realty indices underperformed, delivering negative returns during FY25.