Big Picture: 2025 in Review

2025 was marked by global uncertainty—trade tensions, geopolitical risks, and policy shifts—yet Indian markets showed resilience driven by domestic participation and policy support. While foreign investors remained net sellers, domestic capital played a stabilising role across equity and debt markets.

Macroeconomic Snapshot

  • India remained the fastest-growing major economy, with GDP growth estimated at 7.4% (First Advance Estimates).
  • Inflation stayed below the RBI’s lower tolerance band, allowing cumulative repo rate cuts of 125 bps in CY25.
  • External position remained manageable, supported by services exports, remittances, and forex reserves near USD 700 billion.
  • Fiscal consolidation continued, even as capital expenditure formed a larger share of government spending.

Market Performance & Flows

  • Indian equities delivered gains for the 10th consecutive year, though they underperformed global peers.
  • Foreign Portfolio Investors (FPIs) recorded net outflows of USD 18.9 billion (₹1.6 lakh crore) in 2025.
  • Domestic Institutional Investors (DIIs) offset this with record net inflows of ₹7.8 lakh crore, supported by strong SIP flows.
  • Fixed income markets reflected policy easing at the short end, while long-term yields remained sticky due to supply pressures.

Capital Markets & Fund Raising

  • Total capital raised at NSE hit a record ₹19.6 lakh crore in 2025, up 10% YoY—more than twice the net bank credit extended to industry and services.
  • Debt markets dominated with ₹15.1 lakh crore, while equity fundraising stood at ₹4.2 lakh crore.
  • India led globally in IPO volumes:

              o    220 IPOs on NSE, raising ₹1.78 lakh crore

              o    367 IPOs globally, accounting for 28.4% of global listings

Investor Base & Participation

  • Unique investor base reached 12.5 crore, with total client accounts exceeding 24 crore.
  • New investor additions moderated to 1.6 crore (from 2.3 crore in 2024), signalling normalisation rather than exit.
  • Nearly 70% of all investor accounts have been added in the last five years.
  • Investor demographics continued to broaden:

           o    Median age around 33 years

           o    38% of investors below 30

           o    Rising participation from non-metro centres

  • Gujarat became the third state with over one crore investors, after Maharashtra and Uttar Pradesh.

Household Wealth & Ownership

  • Individuals (directly and via mutual funds) held 18.75% of listed equities, the highest share in over two decades.
  • Household equity holdings stood at ₹84 lakh crore, more than five times the March 2020 level.
  • Estimated household wealth creation since April 2020: ₹53 lakh crore, linking capital markets more directly to consumption and confidence.