
Indian equities experienced a recovery in 2025, with benchmark indices like the Nifty and Sensex closing the year with gains of over 10% and 8% respectively, following a correction. This rebound was driven by strong domestic money flows, a cooling inflation rate allowing the Reserve Bank of India to cut repo rates, and early signs of earnings recovery across various sectors. Market focus is shifting towards company earnings, policy support, and economic health for future performance.