Sector Rotations
Indian stock markets saw significant sector rotation in 2025, favoring cyclical and commodity-linked industries while defensive and growth-oriented sectors underperformed in view of world headwinds and muted profits. Driven by better asset quality and infrastructure demand, public sector banks led at 27.77% with the Nifty PSU Bank index, followed quickly by Nifty Metal at 21.63% on increasing commodity prices, Nifty Automobile at 21.12%, and financial services/banking indices around 16%.
With Nifty IT falling over 9–13% YTD as a result of slow worldwide tech spending and profit misses, and Nifty Media plummeting 19–23%, the IT and media industries were hardest hit. Reflecting valuation corrections and weak consumer demand, real estate and FMCG also trailed with losses of 4–17% and about 3%.
Select smallcaps and midcaps among individual equities produced multibagger returns in specialized sectors, including semiconductors (e.g., RRP Semiconductors with massive gains during speculation), mining, defense, and technological services, even if wider smallcaps dropped 7–9%. On the other hand, prominent names suchas Tejas Networks (-62%), Ola Electric (-57–62%), FirstCry (-56%), and Whirlpool (-52%) led losers together with real estate drops like Oberoi and Godrej Properties.


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