Indian stock market, Jan. 4 -- The year 2025 proved to be a policy-driven and volatile year for global markets, shaped by tariff-related disruptions, shifting interest rate expectations, and heightened geopolitical risks.

Global markets delivered strong returns in 2025, supported by an AI-driven rally, valuation re-rating and local policy support. Markets such as South Korea, Brazil and Japan gained the most. China, the US (S&P 500) and Europe also delivered higher double-digit returns.

However, the Indian stock market underperformed global peers in 2025. Large and Mid caps were relatively resilient, while small caps corrected meaningfully, reflecting valuation normalisation and earnings downgrades.

In 2025, the Nifty 50 posted gains o...