Market Analysis: Q4 Performance Review
• November 4, 2025
Macro Trends in Q4 2024
US equities showed remarkable resilience, particularly large-cap growth stocks, which posted gains of 7.1% for Q4, while international markets lagged due to a stronger
US dollar and global policy uncertainty.
The Federal Reserve maintained a hawkish stance but implemented its third consecutive rate cut, responding to persistent inflation and market challenges.
Fixed income markets experienced headwinds, especially long-term Treasury bonds, which declined as yields rose to 4.6%.
Sector and Industry Performance
Domestic cyclicals—including finance, industrials, and autos—led Q4 results with robust profit growth, while defensive sectors like IT and consumer staples grew
modestly.
Consumer sectors showed steady trends and anticipate price adjustments in early 2025, with recovery expected in volumes later in the year.
Key Earnings Insights
Analyzing quarterly results reveals leading factors driving company performance such as revenue growth, adjusted earnings per share (EPS), and cost management.
Major companies met or exceeded expectations, with financial and automobile sectors driving positive momentum on the Nifty index.
Additional Highlights
The S&P 500 achieved 57 new all-time highs, with an annual gain of 25%, marking one of the strongest performances in recent decades.
Technological innovation and sustainability were key drivers, especially in materials and chemicals, as companies shifted toward bio-based and eco-friendly solutions.