FY25: A ‘Golden’ Year, But Not for Dalal Street Investors
Two Contrasting Halves
Dalal Street investors experienced a rollercoaster ride in FY25. The first half, until September, was marked by a bull run with the Sensex and Nifty surging ahead. However, this rally came to a sudden halt in October as foreign funds simultaneously pulled out of Indian stocks.
H1 FY25: The Bull Run
- The Sensex rose by approximately 16%
- BSE’s market cap grew by over Rs 94 lakh crore
H2 FY25: The Downturn
- The Sensex dropped by 8.9%
- BSE’s market cap fell by around Rs 63.7 lakh crore
- Net addition to investor wealth amounted to Rs 30.4 lakh crore
Record Fundraising in FY25
- Equity market raised Rs 3.8 lakh crore
- Debt market raised Rs 11.1 lakh crore
Gold and Silver Outperformance
FY25 will be remembered for the remarkable performance of gold and silver. Domestically, both metals saw a 38% rally, while silver outshone gold in the international market with a 43% increase.
Foreign Funds vs Mutual Funds
FY25 saw significant selling by foreign funds in stocks, leading to an annual net outflow of nearly Rs 1.3 lakh crore. Conversely, mutual funds bought stocks worth Rs 4.6 lakh crore. The year also set a record for gross inflows into mutual funds through the SIP route, with Rs 2.6 lakh crore in the first 11 months of FY25.
