Despite a year of unprecedented global upheavals, the Indian stock market has delivered returns surpassing fixed deposits, highlighting equities’ edge in chaotic environments.
2025’s challenges were formidable: Escalating U.S.-China tariffs crippled exports, climate disasters hammered agriculture worldwide, and cyber threats disrupted financial systems. Central banks worldwide struggled with sticky inflation, leading to prolonged high rates.
Yet, India’s benchmarks defied the odds. The Nifty 50 rose 15.5%, driven by resilient consumer stocks and financials. Fixed deposits, offering a mere 7% on average, paled in comparison as real returns eroded under inflation.
Key drivers included record GST collections signaling economic vigor, PLI scheme successes in manufacturing, and a demographic dividend boosting demand. Blue-chips like Reliance and TCS anchored gains, while midcaps added spice with 20% average returns.
‘Equity markets reward patience,’ emphasizes economist Dr. Anjali Rao. Data shows SIP investors averaged 16% returns, far outstripping FDs. Even during mid-year corrections of 10%, quick recoveries vindicated holding strategies.
As stability returns, the message is clear: For wealth creation, stocks remain superior to conservative FDs, especially in India’s growth story.