The Indian stock market witnessed healthy cross-segment buying on the last day of 2025, driven by short covering triggered by optimism that the coming year will be better than the current one, due to anticipated earnings growth, an India-US trade deal, and the return of foreign investors to the Indian market.
The Sensex jumped 546 points, or 0.64%, to close at 85,220.60, with Reliance, Kotak Mahindra Bank, and Axis Bank as the top contributors to the gains. The Nifty 50 settled at 26,129.60, rising 191 points, or 0.74%. The BSE Midcap index rose by 1%, while the Smallcap index jumped 1.19%.
Investors earned nearly ₹4 lakh crore in a single session as the overall market capitalisation of BSE-listed firms rose to nearly ₹476 lakh crore from ₹472 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. Why did the Indian stock market rise today?
The Indian stock market ended higher on short covering after the recent correction. The focus is now on the upcoming Q3 earnings season, which is expected to be better than the previous several quarters.
“Markets ended 2025 on a strong note, posting a broad-based recovery. Looking ahead, expectations are rising for a constructive rebound in 2026, supported by improving demand conditions. Investor sentiment is likely to hinge on corporate earnings and a potential uptick in nominal GDP growth,” said Vinod Nair, Head of Research, Geojit Investments Limited.
(This is a developing story. Please check back for fresh updates.)
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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.
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