Much of the hesitation at the top is tied to the shifting market structure. Gains this year have been driven almost entirely by largecaps, analysts say, supported by domestic institutional inflows. Smaller companies never recovered fully from the drawdown. The BSE Smallcap Index remains about 10% below its all-time high and midcaps are still 3.5% off recent peaks.
With breadth weak and global cues mixed, here’s why the index’s latest breakout lacked the depth typically associated with sustained rallies and signals worrying signs for investors