Enter 2026: What should investors track now? Banking, metals and PSU stocks led 2025 rally

Indian equity markets ended 2025 on a strong note. Benchmark indices closed near record highs. The year did not see a broad-based rally. Only a few sectors led the gains.

Banking, PSU stocks, metals and autos supported the market. IT, FMCG, pharma and realty lagged. Market breadth weakened in the second half of the year.

Nifty 50

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The Nifty 50 closed 2025 at 26,129.60. It ended higher than the previous close of 25,938.85.

The index rose 10.5 per cent in 2025. This was its 10th straight year of gains.

Nifty moved up from its 2024 close of 23,644.90. Large-cap stocks led the rally. Financial and auto stocks supported the index.

The benchmark ended the year near its 52-week high of 26,325.80. The 52-week low was 21,743.65. This shows the trend remained strong despite corrections.

Nifty Bank

Nifty Bank settled at 59,581.85, rising from the previous close of 59,171.25. The index advanced strongly from its 2024 close of 50,952.75, aided by improving asset quality and healthy credit growth.

It closed the year just shy of its 52-week high of 60,114.30, compared with a 52-week low of 47,702.90.

Nifty Financial Services

The Nifty Financial Services index ended at 27,613.30, above its previous close of 27,382.80. From its 2024 close of 23,565.30, the index recorded solid gains through the year.

It remained near its 52-week high of 28,065.50, while the 52-week low stood at 22,320.85.

Nifty Auto

Nifty Auto closed 2025 at 28,189.60, higher than its previous close of 27,889.65. The index rallied sharply from its 2024 close of 22,768.25, making it one of the strongest sectoral performers of the year.

It finished close to its 52-week high of 28,226.75, compared with a 52-week low of 19,316.65.

Nifty FMCG

The Nifty FMCG index ended at 55,475.65, marginally above its previous close of 55,033.15. However, it finished below its 2024 close of 56,618.40, as margin pressures weighed on the sector.

The index traded between a 52-week high of 59,302.55 and a 52-week low of 50,199.35.

Nifty IT

Nifty IT closed the year at 37,884.05, slightly lower than its previous close of 37,998.60. The index declined from its 2024 close of 43,971.40, tracking uncertainty in global technology spending.

It moved in a wide range during the year, between a 52-week high of 44,798.65 and a 52-week low of 30,918.95.

Nifty Metal

The Nifty Metal index settled at 11,167.65, above its previous close of 11,007.65. It rose sharply from its 2024 close of 8,609.85, driven by policy support and recovery in global metal prices.

The index ended near its 52-week high of 11,216.05, with a 52-week low of 7,690.20.

Nifty Pharma

Nifty Pharma closed at 22,723.65, higher than its previous close of 22,540.05, but below its 2024 close of 23,241.15.

The index traded within a limited range, with a 52-week high of 23,604.45 and a 52-week low of 19,121.10.

Nifty PSU Bank

The Nifty PSU Bank index ended 2025 at 8,533.15, rising from 8,431.50. From its 2024 close of 6,493.25, the index emerged as one of the top performers of the year.

It closed near its 52-week high of 8,665.70, compared with a 52-week low of 5,530.35.

Nifty Realty

Nifty Realty settled at 877.95, up from the previous close of 869.80, but well below its 2024 close of 1,054.85.

The index remained far from its 52-week high of 1,057.65, with the 52-week low at 765.80.

Nifty Midcap 100

The Nifty Midcap 100 ended the year at 60,484.50, higher than 59,914.25, and above its 2024 close of 57,189.75.

It finished near its 52-week high of 61,311.25, with a 52-week low of 46,865.70.

Nifty Smallcap 100

Nifty Smallcap 100 closed at 17,713.95, rising from 17,518.95, but below its 2024 close of 18,639.95.

The index traded between a 52-week high of 19,224.95 and a 52-week low of 14,084.30.

Outlook for 2026

Zee Business analysts see the Nifty moving towards 29,000, 30,000 and 30,800 levels. They believe the 23,700–24,400 range is a strong support zone. Any fall towards this level may attract buying.

Analyst say the January to March period could offer good investment opportunities. Short-term volatility may create entry points for long-term investors.

They expect 2026 to be the year of midcap stocks. Earnings growth is likely to be broader in this segment.

PSU stocks could be the dark horse in 2026. Improving balance sheets and policy support may help these stocks outperform.

How the market performed in 2025

The Indian market stayed strong in 2025. Major indices continued their long-term uptrend.

The Nifty rose 10.5 per cent in 2025. This was its 10th consecutive year of gains.

The Bank Nifty gained 17.2 per cent. It remained strong for the fifth straight year.

The Midcap Select index rose 6.7 per cent. This was its third consecutive year of gains.

The Nifty Midcap 100 gained 5.7 per cent. It stayed positive for the sixth year in a row.

The Smallcap index fell 5.6 per cent. It turned weak after two years of gains.

Among sectors, PSU Bank stocks rose 30.5 per cent. This was their fifth straight bullish year.

The Metal index gained 29 per cent. It remained strong for the sixth consecutive year.

Stock-level performance in 2025

Stock performance was selective in 2025. Only a few stocks delivered very high returns.

In the F&O segment, L&T Finance rose 132 per cent. Aditya Birla Capital gained 101 per cent.

In the broader market, Force Motors surged 216 per cent. Ether Industries jumped 156 per cent. Hindustan Copper rose 109 per cent.

Market breadth was weak in smallcaps.

Only 26 stocks in the Nifty 50 delivered double-digit returns.

Only 14 out of 25 stocks in the Midcap Select gave double-digit gains.

In the Smallcap index, just 23 out of 100 stocks posted double-digit returns.

In the Smallcap 100, only 35 stocks ended the year in positive territory.