From Panic to Power: How India’s Markets Bounced Back

•⁠  ⁠After a steep correction from September 2024 to March 2025—where Nifty 100 fell 17%, Midcap 150 dropped 21%, and Smallcap 250 plunged 26%—Indian equities have staged a sharp recovery.

 

•⁠  ⁠As of June 27, 2025, major indices are trading just 1–5% below their previous peaks.

 

•⁠  ⁠Sectoral winners include Nifty India Defence (+31%), Financial Services Ex-Bank (+11%), and Nifty Bank (+7%).

 

•⁠  ⁠Laggards include Nifty Energy (–16%), EV & New Age Auto (–15%), and FMCG (–15%).

 

•⁠  ⁠Small caps led the rebound, with 85 of 250 stocks closing higher over the nine-month period.

 

Outlook: The market’s resilience underscores investor confidence in India’s macro fundamentals. With geopolitical tensions easing and crude prices stabilizing, analysts expect continued momentum—especially in defence, financials, and manufacturing. While valuations remain stretched in pockets, the broader trend suggests a “buy on dips” strategy remains valid for long-term investors.

 

Source: The Hindu BusinessLine