- What helped Nifty move higher
- What the Nifty PE Valuation indicates
- Stocks that boosted sentiment with strong one year returns
- How the top Nifty heavyweights contributed to the index
- What this table tells us
- What this means for investors
- Final takeaway
- Disclaimer
Nifty 50 touched a new all time high of 26,310.45 today. This marks a strong turnaround for the market after a weak start earlier this year. The rise is supported by steady domestic flows, improving earnings and strong participation across major sectors.
What helped Nifty move higher
The rise in Nifty over the past few months has been backed by steady domestic flows and improving confidence in the economy. Global cues have also supported the move as inflation worries have eased and interest rate expectations are becoming more stable.
If we look at the market over the last one year, Nifty has gained more than 8 percent. The index saw a sharp dip in February 2025 but recovered strongly from mid 2025 as earnings stabilised and investment activity picked up again.
What the Nifty PE Valuation indicates
When an index hits fresh highs, looking at valuations becomes important. The Nifty 50 PE chart for the last three years shows that the index is currently trading around the 22 to 23 range. This is well within its recent band of roughly 20 to 24. This means the market is not in an unusually expensive zone. The rise appears supported by both earnings growth and liquidity rather than only sentiment. So even with the new high, valuations look stable.
Stocks that boosted sentiment with strong one year returns
Some stocks delivered very strong one year returns and helped lift overall market confidence. These companies come mostly from finance and auto, two sectors that play an important role in Nifty’s movement.
| Company | 1 Year Return (%) |
| Bajaj Finance | 56.45 |
| Maruti Suzuki | 47.31 |
| Eicher Motors | 43.27 |
| Shriram Finance | 42.82 |
Source: Tradingview
How the top Nifty heavyweights contributed to the index
Below is a simple view of the biggest Nifty 50 stocks, their weight in the index and their 1 year return. Higher weight means even a small move in the stock has a big effect on Nifty.
| Company | Nifty Weight (%) | 1 Year Return (%) | How it influenced Nifty |
| HDFC Bank | 12.78 | 13.48 | Added steady support because even moderate gains move the index due to high weight |
| Reliance Industries | 8.53 | 20.88 | One of the biggest positive drivers because of both high weight and strong return |
| ICICI Bank | 8.14 | 7.02 | Gave stability to the index though the return was small |
| Bharti Airtel | 4.75 | 35.02 | A strong contributor as the stock outperformed sharply |
| Infosys | 4.53 | -18.99 | Pulled down the index as weak global tech demand hurt performance |
Source: Tradingview
What this table tells us
The table shows that the index rise came mainly from financials, energy and telecom stocks. HDFC Bank, Reliance and ICICI Bank together form almost 30 percent of Nifty. So even steady gains from these stocks can lift the entire index. Bharti Airtel added a noticeable boost because its return was strong. Infosys reduced some of the gains because it delivered a negative return, but the broad strength in other heavyweights was enough to push Nifty to a new high.
What this means for investors
- The rise is broad based, which means the rally is not dependent on one sector or one stock
- Valuations are still within their normal range, so the index is not showing signs of overheating
- Heavyweights like banks, telecom and energy are supporting the move, which gives the rally more stability
- The market trend shows higher highs and higher lows, which signals improving sentiment and stronger momentum
- Weakness in a few stocks like Infosys did not break the trend, showing that overall market strength is solid
- For long term investors, staying invested through regular SIPs is still safer than trying to time short term moves
Final takeaway
Nifty 50 touching 26,310.45 shows that the market is moving with confidence and backed by real earnings strength. The rise is supported by major sectors, healthy participation from domestic investors and valuations that still sit in a normal range. If earnings hold up and global conditions do not turn negative suddenly, the market can continue to stay on a steady path. For investors, this phase is a reminder to stay disciplined, focus on long term plans and avoid getting carried away by short term excitement.
Disclaimer
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