The BSE Sensex rose 242 points, or 0.3%, to 84,917 in morning trade on the last trading day of 2025, snapping a five-session losing streak, mainly buoyed by gains in metal stocks after the government imposed a three-year import tariff on select steel products. Metal stocks rose 1.2%, led by JSW Steel (4.0%), Jindal Steel (3.3%), and Tata Steel (2.0%). However, persistent foreign outflows capped gains, with foreign investors offloading shares worth a record $18.5 billion in 2025. India’s stock market is set to drop by around 0.9% for the month amid ongoing foreign outflows. Still, the index surged by around 8.7% over the year, supported by strong domestic economic data. Meanwhile, a slowdown in annual inflation has fueled hopes that the RBI will cut its benchmark policy repo rate in 2026 to support GDP growth amid uncertainty over the US-India trade deal. Additionally, interest rate cuts by the Fed and expectations of further easing next year also lifted sentiment.
