Markets build on reform tailwinds, a firm footing for Q4 CY25

India's equity markets held their ground in Q3 CY2025, supported by policy-led momentum and domestic participation depth. Despite US tariff uncertainty, GST 2.0 reforms and resilient domestic demand held the index near 25,000. 

Highlights

• Backed by strong inflows, small-cap and mid-cap indices outperformed the Nifty 100 by nearly 2x this quarter. Increased DII participation, along with robust corporate earnings growth, further fueled the strong performance.
• Primary market saw bigger ticket sizes with better premiums. IPO issue sizes have
  increased, as companies sense that stock markets have the appetite for larger listings.
• Over 16,000 crores raised this quarter through QIPs, driven by IT and Financial Services.
• Post resolution of election uncertainty, significant inflows from domestic mutual funds and active participation by FPIs have spurred increased activity in block trades.