New Delhi, Dec. 23 -- As 2025 draws to a close, Indian equity markets are heading into the festive season on a cautious but hopeful note. The year has been far from smooth for investors, marked by bouts of volatility, global uncertainty, fluctuating interest rate expectations and sharp sectoral rotations. While frontline indices managed to hold their ground for much of the year, broader markets-especially mid- and small-caps-faced sustained pressure after a blockbuster run in the previous two years.

The benchmark Nifty has jumped almost 10% in 20205 YTD while mid-cap index is completely flat and small-cap index is down around 8%.

Yet, as history has often shown, periods of consolidation tend to set the stage for the next meaningful tren...