India's stock market capitalization saw its slowest rise in three years during 2025, increasing by only 2.3 percent to $5.27 trillion. This performance lagged behind major global markets, which experienced significant gains, with Canada leading at 36 percent. Factors contributing to India's subdued growth included persistent foreign outflows, high valuations, softer earnings, and limited exposure to the AI theme. Despite these headwinds, domestic inflows and resilient macro indicators kept the Sensex and Nifty near record highs.