Dalal Street experienced a muted year-end, with the anticipated 'Santa Claus rally' failing to materialize in late 2025. Factors contributing to this include stretched valuations after a strong second half, a lack of new domestic catalysts like trade deals or policy announcements, and shifting global capital flows towards stronger US market momentum. While domestic institutional investors provided support, preventing sharp declines, foreign investors redirected capital to the US, leading to selective selling. The market entered December already pricing in positive news, resulting in consolidation rather than celebration.