Indian shares bounced back in a broad-based rally on the last day of 2025, led by metal stocks after the government imposed tariffs on some steel products to curb cheap imports. The Nifty 50 index rose 0.74% to 26,129.60 and the BSE Sensex index gained 0.64% to 85,220.60. Indian benchmarks lagged their emerging and Asian market peers in 2025 amid record foreign outflows. The shares “remained trapped within a broader consolidation zone in December characterised by muted volumes,” said Dhupesh Dhameja, research analyst at SAMCO Securities. However, the blue-chips are poised for stronger returns next year, underpinned by improving earnings outlook, steady economic growth and more reasonable valuations. The near-term trajectory will depend on auto sales data for December, due on Thursday, upcoming quarterly results and the union budget in February, analysts said. WINNERS AND LOSERS On the day, gains were led by metal stocks, which rose 1.5% after the government imposed a three-year import tariff on select steel products. Reliance Industries, one of the heaviest-weighted stocks on Nifty 50, rose 2% to post its best session in a month. For the month, 10 of the 16 major sectors fell. The broader small-caps and mid-caps fell 0.7% and 0.9%, respectively. Among individual stocks, airline IndiGo fell 14.3% after cancelling about 4,500 flights earlier in the month as poor pilot roster planning hurt nationwide air travel. Shriram Finance surged 17% after Japan’s MUFG said it will buy a 20% stake in the non-bank lender for $4.4 billion in the largest cross-border investment in India’s financial sector.