FX.co ★ Sensex Posts 9.1% Yearly Gain, Still Lags Asian Peers

In the final trading session of 2025, India's BSE Sensex showed a strengthening trend, closing approximately 0.6% higher at 85,221, thereby breaking a five-day losing streak. This positive movement was buoyed by a rise in metal, energy, and banking stocks. Notably, Tata Steel led the advance with a 2.3% increase, spurred by the government's decision to enforce a three-year safeguard duty ranging from 11% to 12% on specific steel imports, aimed at countering inexpensive Chinese shipments. Following closely, Kotak Mahindra Bank recorded a 2.2% rise, while Reliance Industries, Titan, Axis Bank, and Trent achieved gains of 1.8%, 1.8%, 1.8%, and 1.65%, respectively. Conversely, Tata Consultancy Services decreased by 1.1%, with Tech Mahindra, Infosys, and Bajaj Finance showing declines of 0.9%, 0.5%, and 0.2%, respectively. Throughout 2025, the index climbed approximately 9.1%, marking a decade of consecutive annual gains, albeit underperforming relative to its Asian counterparts. Despite strong domestic economic fundamentals and supportive policies, factors such as subdued earnings growth, trade tensions with the US, and unprecedented foreign capital outflows moderated these gains.