Nifty Posts 10.51% Annual Return in 2025: Report

Mumbai: The benchmark Nifty index delivered a robust annual return of 10.51 per cent in 2025, despite broader markets remaining largely subdued in December, according to a new report released on Saturday.

Data from the latest Global Market Snapshot by Motilal Oswal Mutual Fund indicated that while short-term market trends were mixed, certain sectors—particularly metals and automobiles—continued to outperform over longer timeframes.

In December, the Nifty edged down marginally by 0.28 per cent. However, it recorded gains of 6.17 per cent over the past three months and 2.40 per cent over the last six months.

The Nifty Next 50 outperformed on a monthly basis, rising 0.33 per cent in December. It posted returns of 2.24 per cent over three months, 0.53 per cent over six months, and 2.02 per cent over the year.

The Nifty Midcap 150 declined 0.53 per cent during the month but still delivered gains of 5.89 per cent over three months, 1.31 per cent over six months, and 5.37 per cent year-on-year.

Small-cap stocks continued to remain under pressure. The Nifty Smallcap 250 slipped 0.29 per cent in December and registered negative returns of 6.25 per cent over six months and 6.01 per cent over one year.

The Nifty Microcap 250 saw a sharper monthly fall of 2.46 per cent and posted losses of nearly 10 per cent on an annual basis.

Meanwhile, the broader Nifty 500 index declined 0.26 per cent in December but ended the year with a gain of 6.69 per cent. It delivered returns of 5.00 per cent over three months and 1.08 per cent over six months.

On the sectoral front, metal stocks emerged as the top performers, gaining 8.5 per cent in December and posting a strong annual return of 29.11 per cent. Auto stocks also showed resilience, rising 1.49 per cent during the month and delivering a solid yearly return of 23.45 per cent.

Banking stocks remained stable, recording annual gains of over 17 per cent, while IT stocks posted marginal increases. In contrast, consumer durables, healthcare, and real estate sectors declined by around 2 to 3 per cent during December.

The defence sector fell 3.28 per cent in the month but still managed an impressive annual gain of 19.30 per cent. Realty stocks continued to struggle, declining nearly 17 per cent over the year.

Factor-based performance was mixed, with value stocks gaining 3.1 per cent in December, while momentum stocks fell 3.8 per cent. Commodities, IT, and energy stocks provided support to the broader market, whereas financials, consumer discretionary, and healthcare stocks weighed on the Nifty 500.

— IANS