Global bull run leaves Dalal Street playing catch-up in 2025

Global equity markets wrapped up 2025 on a strong note, delivering broad-based and outsized gains across regions, while Indian equities lagged peers with only single-digit returns. The year clearly belonged to overseas markets, where aggressive rallies were driven by easing financial conditions, strong corporate earnings and improving global risk appetite.

India’s benchmark indices ended the year with relatively muted performance. The Nifty 50 rose just over 10%, while the Sensex gained around 9%, placing Indian equities well behind most major global markets, according to data compiled by ET. Domestic headwinds, valuation concerns and intermittent risk-off phases kept returns capped despite stable macro fundamentals.

In sharp contrast, several global markets posted exceptional gains. South Korea emerged as the standout performer, with the KOSPI surging nearly 75% in 2025, buoyed by a powerful rebound in technology and semiconductor stocks, as per ET data.


Brazil’s Bovespa climbed over 34%, supported by strong commodity prices and improving fiscal confidence. Hong Kong’s Hang Seng rose close to 29%, while Japan’s Nikkei rallied more than 26%, reflecting renewed investor optimism around corporate reforms and earnings momentum, ET data revealed.

US equity markets also remained resilient and continued to outperform Indian benchmarks. The Nasdaq advanced over 22%, driven by sustained enthusiasm around artificial intelligence and technology spending. The S&P 500 gained nearly 18%, the Dow Jones rose about 14%, and the Russell 2000 added over 14%, underscoring the breadth of the US market rally, according to an Axis Direct report.

Europe participated strongly in the global upswing as well. Major indices such as the Euro Stoxx and the UK’s FTSE delivered gains in excess of 20%, benefiting from easing inflation pressures and expectations of accommodative monetary policy, the report further revealed.

According to the Axis Direct report, beyond equities, 2025 turned out to be a stellar year for precious metals. Silver delivered extraordinary gains of nearly 149%, while gold climbed around 50%, as investors sought protection against inflation risks, geopolitical uncertainty and currency volatility. These returns comfortably outpaced both Indian and global equity markets.

Macro trends also played a supportive role for risk assets globally. The US dollar weakened sharply, with the DXY index falling close to 10%, improving liquidity conditions for emerging and developed markets alike. Crude oil prices declined over 16%, easing inflation concerns. Meanwhile, the Indian rupee depreciated by nearly 5% against the US dollar, adding another layer of pressure on domestic equity returns, the report further said.

Overall, 2025 highlighted a clear divergence between Indian equities and global markets. While India remained a structurally strong story, returns failed to match the powerful rallies seen across the US, Asia and Europe. For investors, the year reinforced the importance of global diversification, as overseas equities and alternative assets significantly outperformed domestic benchmarks.

Also read: January jinx weighs for Nifty bulls: 80% failure rate in last 10 years linked to FII selling

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