The Nifty 50 Index has done well this year, jumping by over 14% from its lowest point in April. It was trading at ₹24,890 on Monday, a few points below the year-to-date high of ₹25,205. This article explores the top gainers and the worst-performing Indian stocks of 2025 so far.
Why Indian stocks jumped
The Nifty 50 Index has jumped this year for at least three key reasons. First, the Reserve Bank of India (RBI) has started cutting interest rates this year.
It initially slashed them by 0.25% in February and then surprised market participants by cutting them by 0.50% in the last meeting. It also provided more liquidity measures by lowering a key reserve requirement by banks.
The bank noted that the rate cuts would lower the cost of borrowing and incentivize the private sector to borrow more. Analysts anticipate that the Indian economy will grow by 6.5% this year and reach $4.18 trillion. It may even overtake Japan to become the third-biggest economy.
RBI’s rate cuts have brought bond yields lower this year, with the ten-year falling to 6.326%, down from the year–to-date high of 6.868%. Similarly, the five-year yield has dropped to 6% from 6.847% in January.
Investors often rotate from government bonds and money market funds whenever interest rates come down.
The recent V-shaped recovery of the Nifty 50 Index has mirrored that of other global stocks. For example, the Dow Jones Index has risen from a low of $36,638 in April to $42,206 today. Similarly, the Nikkei 225 Index has jumped from 30,800 yen in April to 38,230 yen.
Top gainers in the Nifty 50 Index in 2025
Most Nifty 50 Index stocks have jumped this year. Bharat Electronics, a top player in the defence industry, has been the best-performing stock, jumping by 41%. It has soared by over 1,400% in the last five years, making it one of the top gainers over time.
Bharat Electronics stock price has jumped because of the ongoing geopolitical risks globally. For example, Donald Trump launched a bombing campaign in Iran during the weekend that could spiral into another war.
These geopolitical risks have led to a surge in defense stocks as investors anticipate more demand. Bharat is one of the biggest defense companies in India, making products like avionics, radar, and tanks among others.
The other top-performing Nifty 50 Index stocks are companies like Bajaj Finance, SBI Life, HDFC Life Insurance, Bajaj Finserv, Bharti Airtel. And Kotak Mahindra.
As we wrote recently, Bajaj Finance share price has jumped by over 30% this year, helped by the rising demand for its loans. A key concern, however, is whether the stock has become highly overvalued.
SBI Life Insurance’s stock price has jumped by over 30% this year, even as its revenue and profit stalled. Its net profit of Rs 814 crores was flat in the first quarter and was lower than estimates.
Indian consultants lead losses
On the other hand, top Indian consulting companies are the top laggards in the Nifty 50 Index. Tata Consultancy’s stock price has plunged by 17% this year, while Infosys, HCL, and Wipro have dived by 15% and 12%, respectively.
These companies have struggled because of the ongoing slowdown in IT consulting as companies adjust to Donald Trump’s tariffs. The same has happened in the United States, where consulting companies like Accenture and Booz Allen Hamilton have suffered because of DOGE cuts.
Trent share price has crashed by 17% this year as valuation concerns about the apparel retailer rose. The other top laggards in the Nifty 50 Index this year are IndusInd Bank, Sun Pharmaceuticals, Tata Motors, and Power Grid, which were among the worst performers.
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