Despite the five months of consecutive falls between October and February, the Indian equity markets closed FY25 in the positive zone. BSE Sensex increased by 5.1 per cent, while Nifty50 went up by 5.3 per cent, with the 6 per cent jump in March bringing much relief. Both indices closed around 10 per cent off their all-time highs in September, though.

The fiscal year was characterized by volatility, driven mainly by political uncertainties, world economic trends, and corporate results. The markets saw a sharp correction after October, wiping out most of the advances registered up to September.

Foreign Institutional Investors (FIIs) remained net sellers in FY25, selling Indian equities amounting to Rs 1,27,041 crore. The sharpest monthly offloading was done in January at Rs 78,027 crore. However, Domestic Institutional Investors (DIIs) soaked up the pressure, and they too were net buyers with a massive Rs 6,06,368 crore inflow. Their peak monthly purchase occurred in October at Rs 1,07,255 crore.

Of the BSE 500 constituents, 245 stocks gave positive returns. Seven stocks became multibaggers, such as Mazagon Dock Shipbuilders, GRSE, Deepak Fertilisers, Lloyds Metals & Energy, and Godfrey Phillips India. Amber Enterprises and One97 Communications, the parent company of Paytm, also gave more than 90 per cent returns.

On the negative side, stocks like took sharp cuts, falling by 43 per cent to 60 per cent.

What next for FY26?

With political certainty after elections, anchored GDP growth, and sectoral opportunities in pharma and defence, markets might have scope to move higher. Yet, cues from abroad, FII inflows, and corporate earnings will continue to dominate the direction of FY26.