New Delhi, Oct. 27 -- Markets are flirting with all-time highs. Nifty 50 had touched 26,200 in September 2024 before rising US yields and consequent foreign institutional investor (FII) outflows dragged it down to 21,800 levels in about five months. After a year of meandering about, the index is once again testing its lifetime highs.

Nifty 50 broke out above 26,100 on Thursday, but could not sustain the momentum and closed the week below 25,800. Sentiment from here on is contingent on several pieces of the puzzle falling into place: from progress on a trade deal with the US, to domestic demand and private capex responding positively to GST 2.0. Whether the index achieves new lifetime highs or continues to backtrack in the coming months i...