Nifty posts 10.51 pc annual gains in 2025, broader markets mixed

India’s Nifty index posted robust annual returns of 10.51% despite muted performance in broader markets during December, according to recent analysis.

Data from Motilal Oswal Mutual Fund’s Global Market Snapshot report reveals mixed short-term trends, with sectors like metals and automobiles sustaining strong momentum over longer horizons.

Though dipping 0.28% in December, the Nifty recorded three-month gains of 6.17% and six-month returns of 2.40%. The Nifty Next 50 outperformed slightly in December with 0.33% growth, achieving 2.24% over three months and 2.02% annually.

The Nifty Midcap 150 declined 0.53% last month but maintained positive trends with 5.89% quarterly and 5.37% yearly returns. Small-cap stocks faced continued pressure, as the Nifty Smallcap 250 fell 0.29% in December and registered annual losses of 6.01%.

Microcap stocks witnessed sharper corrections, with the Nifty Microcap 250 sliding 2.46% during the month and nearly 10% year-on-year. The broader Nifty 500 dipped 0.26% in December but closed the year with 6.69% annual growth, supported by commodities, IT, and energy sectors.

Sectoral performance highlighted metals as December’s top gainer at 8.5%, culminating in 29.11% annual returns. Auto stocks climbed 1.49% monthly and 23.45% yearly, while banking and IT sectors maintained steady growth. Conversely, consumer durables, healthcare, realty, and defense sectors declined between 2-3% last month.

Factor-based strategies yielded diverging outcomes, with value stocks gaining 3.1% versus momentum stocks dropping 3.8% in December. Financial, consumer discretionary, and healthcare segments dragged on the Nifty 500’s performance despite the index’s annual gains.

(With inputs from IANS)