Indian Markets Green in 2025, But Lag Global Peers Amid Headwinds

• Indian Nifty closed 2025 up 10.7%, extending its winning streak to a tenth year, yet significantly underperformed global and emerging markets.
• Geopolitical tensions (Iran–Israel, Operation Sindoor), US trade policy uncertainty, GST 2.0, and FPI selling ($34 billion) weighed on sentiment and earnings.
• Global indices like Nasdaq (+22%), MSCI EM (+30%), and China (+18%) saw stronger gains; India's dollar-adjusted Nifty gain was only 5.5%.
• Precious metals, especially Silver (+160%), outperformed equities, making 2025 a "precious metals year."
• Domestic SIP inflows provided stability despite FPI outflows; PSU banks, metals, and auto stocks performed well.

Why It Matters: Indian markets showed resilience in 2025 but lagged globally due to various headwinds; patience was key for investors.