Sensex and Nifty Scale New Peaks — But the Market Isn’t Truly Bullish Yet

The Sensex and Nifty have climbed to fresh lifetime highs, yet almost half of the Nifty50 constituents continue to trade below their previous record levels. This underscores an extremely narrow, top-heavy rally dominated by a select group of large-cap leaders. Meanwhile, retail participants are shifting away from secondary markets toward IPO opportunities. Analysts remain cautious, recommending selective accumulation, disciplined risk controls, and prudence as valuations stretch and market breadth weakens. Detailed Summary The Sensex smashed through the 86,000 mark for the first time, briefly touching 86,026, while the Nifty rallied to 26,246.65—surpassing the earlier records seen on September 27, 2024. However, beneath the surface, the broader picture appears far less robust. Nearly half of the Nifty50 stocks have failed to revisit their all-time highs in 2025, revealing a starkly concentrated upmove driven by only a handful of heavyweight counters. In fact, 23 Nifty companies remain at least 10% below their peak levels. Conditions are even more challenging in the wider market: The BSE Smallcap index is still down about 5% for 2025, unable to claw back previous losses. The Midcap index is only marginally higher—around 2% up for the year. By the close of Thursday’s session, the Sensex settled 111 points higher at 85,720, after hitting a fresh intraday record of 86,055.86 earlier in the day.