Stock Market Today LIVE: Sensex loses 400 points, Nifty nears 24,900; IT stocks fall

“With last week’s spectacular fireworks which saw the Nifty boom by 8.6%, the market sentiments have turned for the better. A rare convergence of positive news for India – FIIs turning aggressive buyers, fair valuations, winding down of AI trade, dip in crude price, decline in US bond yields and steadily improving corporate earnings as reflected in Q2 numbers- triggered the rally. When the situation turns favourable, the market needs only a trigger to rally. This trigger was provided by the Democrat’s victory in the US elections, which, in turn, caused fears of deceleration in AI spending and sharp correction in AI stocks,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments.

“The FII buying in India is likely to sustain paving the way for further rally in large-caps. It is important to understand that FII allocations track index weights during major market shifts,” he added.