Indian equity markets surged on Wednesday, the final trading session of 2025, with the BSE Sensex climbing 645 points or 0.76% to an intraday high of ₹85,320.05, while the NSE Nifty 50 advanced 217.45 points or 0.80% to an intraday high of ₹26,156.05. The rally marked a strong rebound after the Sensex and Nifty had declined for five and four consecutive sessions respectively.

Market Performance and Key Levels

The markets demonstrated remarkable strength throughout the trading session, building significantly on modest opening gains:

Market breadth remained strongly positive with 2,764 stocks advancing against 1,253 declines on the BSE, where 4,182 stocks were traded. As many as 111 stocks touched 52-week highs while 114 hit 52-week lows, with 169 stocks in the upper circuit and 103 in the lower circuit.

Steel Stocks Lead Rally on Safeguard Duty Announcement

Metal stocks emerged as the primary drivers of the rally after the government announced a three-year safeguard duty of 12% on select steel product imports, aimed at protecting domestic producers from low-cost overseas supplies, particularly from China:

The government's decision to impose the 12% duty on certain steel imports for three years provided significant support to steelmakers, helping them outperform the broader market as investors welcomed the protective measures against low-priced international competition.

Crude Oil Decline Supports Market Sentiment

Brent crude oil prices eased 0.10% to $61.27 per barrel, providing additional support to Indian equities by reducing inflationary pressures. Oil prices have declined more than 10% in 2025, with Brent crude on track for its longest run of annual declines as global supply outpaced demand despite geopolitical tensions.

Broader Market Indices Outperform

Broader market indices continued to show exceptional strength, outpacing the benchmark indices:

Expert Analysis and Year-End Outlook

Ponmudi R, CEO of Enrich Money, noted that the Nifty was holding above the 25,900 support level with resistance at 26,100-26,160, while Bank Nifty maintained stability above 59,200 with resistance at 59,400-59,500. Despite the surge, trading volumes remained thin due to global holiday closures and year-end position squaring.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., emphasized the year's performance: "After a weak start, Nifty staged a strong comeback to end the year with a solid gain, with Santa-rally optimism remaining intact on Dalal Street, aided by hopes of rate cuts and year-end window dressing, setting a constructive tone for the future."

Indian corporations are significantly reallocating their capital expenditure toward clean energy and climate-aligned projects, marking a decisive shift in the country's industrial landscape. From power utilities to steel manufacturers, major companies are committing substantial resources to renewable energy, green hydrogen, and low-carbon manufacturing technologies.

Market Opportunity and Investment Potential

A comprehensive study by the Council on Energy, Environment and Water (CEEW) reveals the massive scale of India's green economy opportunity. The research projects that India could attract ₹341.00 lakh crore in cumulative green investments by 2047, while simultaneously creating 48 million full-time equivalent jobs. The assessment further estimates a potential annual green market worth ₹91.00 lakh crore by 2047, underscoring the economic significance of the clean energy transition.

Tata Power's Ambitious Clean Energy Expansion

Tata Power has announced one of India's largest clean energy investment programs, outlining a ₹1.25 lakh crore capital expenditure plan over the next five years. The utility aims to scale its total generation capacity to approximately 30 GW by FY30, with 65% of the planned capital directed toward clean and green energy initiatives.

The investment strategy encompasses expanding renewable capacity to over 20 GW, strengthening transmission infrastructure, and developing emerging businesses including solar manufacturing and electric vehicle charging networks. Managing Director and CEO Praveer Sinha emphasized that the program will focus on renewable generation, transmission upgrades, distribution reforms, and next-generation energy solutions.

JSW Energy's Green Hydrogen Leadership

JSW Energy has operationalized India's largest green hydrogen manufacturing facility under the National Green Hydrogen Mission. The plant, strategically located alongside JSW Steel's Vijayanagar facility in Karnataka, represents a significant milestone in industrial decarbonization efforts.

The company has secured a seven-year offtake agreement to supply 3,800 tonnes per annum of green hydrogen and 30,000 tonnes per annum of green oxygen to JSW Steel's direct reduced iron unit. JSW Energy currently maintains 30.50 GW of locked-in generation capacity and 29.40 GWh of locked-in energy storage capacity, targeting 30 GW of generation and 40 GWh of storage by FY30.

Manufacturing Sector Investments

Waaree Energies is deploying approximately ₹8,175 crore across multiple clean energy manufacturing segments. The company plans to expand its lithium-ion battery energy storage systems capacity from 3.50 GWh to 20.00 GWh with ₹8,000 crore investment. Additional commitments include increasing electrolyser manufacturing capacity from 300 MW to 1,000 MW (₹125 crore) and expanding inverter capacity from 3 GW to 4 GW (₹50 crore).

JSW Steel is investing ₹50,000-60,000 crore over three to four years to build 10 million tonnes of green steel capacity at its Salav Works unit in Maharashtra. This output will primarily serve European export markets, where the Carbon Border Adjustment Mechanism becomes effective from 2026.

ONGC's Renewable Energy Subsidiary

ONGC Green, established as a wholly-owned subsidiary in 2024, is responsible for delivering the parent company's 10 GW renewable capacity target by 2030. CEO and Executive Director Sanjay Kumar Mazumder projects the subsidiary will contribute ₹6,000 crore in EBITDA by 2030, representing approximately 9% of ONGC's standalone EBITDA in FY24.

According to Grant Thornton Bharat partner Rishi Shah, reallocating capital toward climate-aligned projects demonstrates economic prudence, as green spending multipliers typically exceed traditional capital expenditure due to higher domestic content and labor intensity. With India requiring nearly ₹33.00 lakh crore in renewable financing by 2030, strategic government policies and clear regulatory frameworks remain crucial for catalyzing private sector investment.