The Nifty index reached a new all-time high, surpassing 26,340, driven by gains in large-cap stocks. This rally is supported by expectations for Q3 results and upcoming Union Budget policies, alongside selective mid-cap buying. Despite the index's strength, a significant portion of NSE 500 stocks declined, indicating a narrow market breadth. Analysts suggest continued upside potential for Nifty and Bank Nifty, though foreign institutional investor caution remains.