As we wrap up the first half of 2025, Indian equity markets have continued to show resilience despite global uncertainties and interest rate fluctuations. But beyond the indices, it’s the sectoral performance that reveals the true story.
Some industries have outperformed expectations, while others faced headwinds due to global supply chains, government policy, or demand cycles.
In this blog, we break down the top-performing sectors in India from January to June 2025, what’s driving their growth, and what investors should keep an eye on for the second half of the year.
Market Snapshot: H1 2025 📈
- Nifty 50: Up ~9.5%
- Sensex: Up ~8.7%
- FIIs returned with positive inflows in Q2
- Mid-cap and small-cap indices outpaced large caps
- Domestic mutual fund SIP inflows hit record highs
Top 5 Performing Sectors in H1 2025 🔥
India’s economy in early 2025 has shown steady momentum, backed by policy reforms, resilient consumption, and renewed investor confidence. While the broader market performed well, sectoral performance varied widely based on global trends, domestic demand, and fiscal incentives.
Some industries benefited directly from government focus areas like infrastructure and manufacturing, while others rode the wave of innovation and consumer shifts.
Let’s explore which sectors stood out — and why they’re attracting attention in portfolios across the country.
1. Capital Goods & Infrastructure
YoY Growth: 22%+
Key Players: L&T, Siemens, BEL, ABB
Fueled by record infrastructure spending, PLI schemes, and a rising push for domestic manufacturing, the capital goods sector saw robust order books and strong quarterly earnings.
The Indian government’s continued focus on building highways, ports, and digital infrastructure made this a go-to sector for institutional investors.
💡WizeTip: Infra ETFs and capital goods-focused mutual funds saw a surge in SIP inflows. Consider them for long-term core portfolios.
2. Automobile & EV Ecosystem
YoY Growth: 18%+
Key Players: Tata Motors, Maruti Suzuki, Hero MotoCorp, Minda Corp, Exide
Auto sales rebounded sharply in Q1 and Q2, especially in the electric vehicle and premium SUV segments. Supply chain constraints eased, and demand from rural India also recovered thanks to better Rabi harvests.
The EV story continues to gain traction with subsidies and expanding charging infrastructure.
⚡Emerging Trend: Ancillary auto and EV battery companies posted stellar returns — a good space for thematic stock pickers.
3. PSU Banks & Financials
YoY Growth: 16%+
Key Players:SBI, Bank of Baroda, Canara Bank, PNB
Public sector banks reported strong credit growth and improved asset quality. Better provisioning and NPA recovery boosted profitability. PSU bank ETFs outperformed their private counterparts.
With a strong macro backdrop and RBI’s neutral stance, this sector could continue its steady rise.
🏦 WizeNote: PSU bank stocks were once seen as high-risk, but 2025 has flipped that narrative for value-focused investors.
4. Pharmaceuticals & Healthcare
YoY Growth: 14%+
Key Players:Sun Pharma, Dr. Reddy’s, Cipla, Apollo Hospitals
After lagging in 2023–24, the pharma sector bounced back with strong exports, new drug launches, and expansion into specialty generics. Indian companies also gained global market share in the US and EU.
Domestic healthcare consumption saw a rise in diagnostics, preventive care, and telemedicine.
🧬 Trend Watch: AI in diagnostics and personalized healthcare solutions are gaining investor attention.
5. IT Services & AI Tech
YoY Growth: 11%+
Key Players: Infosys, TCS, HCL Tech, LTIMindtree
Despite global slowdown concerns, IT services held firm, thanks to large cloud transformation deals and AI-led efficiency projects. Indian tech majors adapted by expanding into cybersecurity and generative AI services.
📝 Wize Insight: Niche AI product firms and mid-cap IT exporters are delivering higher margins than traditional service firms.
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Sectors That Lagged Behind ⚠️
While the broader market performed well, a few sectors struggled:
- FMCG: Margin pressures due to inflation in raw material costs
- Real Estate: Sales dipped slightly in Tier 2/3 cities despite stable urban demand
- Oil & Gas: Regulatory caps on prices hit profitability of OMCs
What to Watch for in H2 2025 👀
- General Elections impact (Q3 volatility likely)
- Crude oil and global commodity prices
- RBI monetary policy shifts/li>
- China’s export rebound affecting metals
- Demand for semiconductors and digital infrastructure
🔍 Final Thoughts from WizeWealth
The first half of 2025 highlighted how sector rotation is real — and rewarding.
✅ Capital goods, auto, PSU banks, pharma, and tech are all aligned with macroeconomic strength and government policy.
✅ Investors who diversified across these sectors saw strong returns despite occasional market dips.
WizeWealth recommends:
- Reviewing your sectoral exposure at least twice a year
- Using AI-powered insights (like WizeBot) to spot early sectoral trends
- Building a long-term portfolio with a mix of cyclical and defensive sectors
📣 Ready to rebalance your portfolio?
Try WizeBot for instant, AI-backed sector analysis and insights.
Example.“Which sector will give most returns in next 6 months.?”