Just a year ago, investing in India felt like a frenzy. In 2023, trendy sectors like green energy and manufacturing were booming, with many stocks doubling or even tripling in value. Fast forward to 2025, and the party has quieted down. While the market is still moving up, the wild excitement is gone. Rallies are smaller and led by fewer companies, as investors now demand proof of real growth before they buy in.

So, what changed? After a two-year surge, the market has slowed down and become more cautious. The rapid earnings growth that fueled the boom has slowed in key areas, particularly for smaller manufacturers and mid-sized financial firms. 

Money isn't flowing as freely either. Foreign investors have become more selective, and local investors are choosing safer bets over exciting new trends.

This may not be a sign of a downturn, but a transition. Markets often cool off after periods of intense excitement, which helps separate the companies with real, lasting strength from those that were overhyped. 

This year’s top-performing stocks—like Force Motors, Waaree Energies, and Ather Energy—reflect a new reality. The success is tied to real-world demand for cars, clean energy, and EVs. It’s a clear reminder that while the market’s tone has shifted, the search for genuine growth stories continues—just with a lot more caution than before.

Samir Arora, Founder of Helios Capital, noted that foreign investors started selling around September 2024, partly due to renewed optimism in the US economy following Donald Trump's political comeback. However, that sentiment soured as he launched trade wars, and unpredictable policies created uncertainty. 

“Normally, FIIs are buyers, but this time there’s an understandable reason behind their selling,” Arora said. He added that as global allocations shift away from the US, India’s stable growth and policies could draw foreign investors back into its equity markets.

In this edition of Chart of the Week, we look at the best-performing Nifty 500 stocks between November 2024 and October 2025, a period that has seen the market’s pace slow from last year’s (November 2023–October 2024) surge. We also explore what’s changed in investing trends.

Built in India, rising with consumer demand

India’s biggest stock gainers of the past year tell a clear story — industrial demand, government support, and changing consumer choices are driving growth.

The Indian government's ‘Production-Linked Incentive’ (PLI) scheme has been a major boost for the country's modern manufacturers. Solar power company Waaree Energies saw its stock soar as it expanded its production and secured global orders worth nearly Rs 47,000 crore by September 2025. 

Similarly, Syrma SGS Technology used the PLI for electronics to expand into automotive and industrial parts, backed by an order book of over Rs 5,000 crore as of June 2025. These companies show how Indian manufacturing is shifting from simple assembly to creating high-value products.

Upgrades to the country's infrastructure also created winners. Force Motors benefited from higher demand for its traveller and trax models used in school transport, tourism, and logistics. It also exited the low-profit tractor business to focus on commercial vehicles. 

HBL Engineering also benefited, winning large contracts for railway signaling and components, especially for the new Vande Bharat trains.

Ather Energy’s success points to another big shift: how people in cities are getting around. The electric vehicle maker grabbed investors' attention with its Rizta family scooter, priced around Rs 1.3 lakh, which brought the brand into the affordable segment. By expanding its network and adding affordable models, Ather is showing that Indian EV startups can scale sustainably in a competitive market.

The quiet winners: how finance and consumers are driving gains

The comeback of the financial sector has been one of the biggest stories this year. RBL Bank’s rally came after two years of quiet restructuring — its net NPAs dropped to 0.6% as of Q2FY26 from over 2% two years ago, restoring investor faith. The lender also saw steady credit growth in retail and small-business loans while maintaining one of the industry’s highest CASA ratios at 31.9%. L&T Finance saw similar success after shifting its focus almost entirely to retail lending (over 90% of its loan book), a move that investors have rewarded.

The momentum wasn’t limited to manufacturers. Retailers and lenders saw gains, too. Manappuram Finance grew by expanding beyond gold loans into microfinance and vehicle loans. Vishal Mega Mart, a retail giant, is capturing the growing spending power of smaller towns and rural areas, reporting a rapid increase in sales at its existing stores last year.

In the pharmaceutical sector, Laurus Labs stood out by successfully pivoting to high-profit contract manufacturing. The company’s contract development and manufacturing organization (CDMO) segment grew nearly 50% in FY25, offsetting weakness in its generic API business.

Together, these stories reveal a clear trend: businesses that have improved their fundamentals or have a proven track record of steady consumer demand are outperforming those with exciting but unproven ideas. This signals a new, more mature phase for India's market, where stability and real cash flow are valued.

Last year’s high-flyers are cooling off after the rush

Let’s turn the clock back to see what happened to last year’s big market winners—stocks that dominated between November 2023 and October 2024 but have since seen their momentum shift.

Last year's stock market rally was all about clean energy and industrial transition. Companies like the Indian Renewable Energy Development Agency (IREDA) and Inox Wind were huge winners in 2023–24, as the government pushed for more renewable energy. This year, however, both stocks have cooled off. IREDA faced pressure from rising costs, while Inox Wind struggled with project delays.

Other big winners from 2024, such as Transformers & Rectifiers and Wockhardt, managed to hold their ground but without the same excitement. Transformers & Rectifiers continued to benefit from government projects to modernize the power grid, but faced high material costs. Wockhardt saw a modest recovery as its business in the UK stabilized, but it wasn't enough to repeat its stellar performance from the previous year.

The one exception was GE Vernova T&D India, which continued its rally, rising 78% this year, thanks to strong demand for power transmission equipment.

The difference between last year's winners and this year's top performers highlights a shift in the market. As money becomes tighter, investors are choosing businesses like Force Motors, L&T Finance and Waaree Energies that are delivering tangible results. This suggests that India’s bull market is becoming more selective, with investors focusing on companies showing steady results rather than just future potential.