In 2025, Indian equities saw consolidation with the Nifty delivering a modest 9.4% return, ranking as the third-worst global performer among major indices. Stretched valuations, slowing earnings growth, weak consumption, and foreign capital outflows due to high US Treasury yields and geopolitical uncertainty contributed to broad market weakness. Investors favored large caps over mid and small caps, as nearly 69% of listed companies posted negative returns, a significant increase from the previous year.