Stock market benchmark fell sharply today, breaching key levels, amid a selloff in global markets. The Sensex fell over 600 points to close at 36,958 while Nifty settled at 10,925, down 1.6%, driven by sharp losses in auto and banking stocks. Barring energy, propped up by a surge in RIL shares, all other sectoral indices on the NSE ended in the red. Global markets fell for a third straight day today as fears about a drawn out global trade war, protests in Hong Kong and a crash in Argentina's peso currency pushed investors into safe-haven assets like bonds, gold, and the Japanese yen. The rupee also weakened to near six-month lows against the US dollar.

“Indian markets have been tagging along global markets in palpable risk-off sentiment due to multiple challenges of intensification of US-China trade war, sell-off in Argentina and Hong Kong markets. Selloff is all-pervasive across the sectors fuelled by less-than-inspiring Indian corporate results and weakening rupee," said Jagannadham Thunuguntla, Sr. VP and Head of Research (Wealth), Centrum Broking Limited .

Market participants are eagerly awaiting any pro-market measures by Indian government post their extensive consultations with various stakeholders over previous week, he added.

1) The Nifty Auto Index tumbled about 4% amid an industry-wide slowdown in demand. India's domestic passenger vehicle sales in July dived at the steepest pace in nearly two decades, an auto industry body said today.

2) Among the auto stocks, M&M fell 6%, Maruti 5% while Hero MotoCorp declined 2%.

3) The selling pressure was also intense in banking stocks, with Bank Nifty index falling 2.5%. Yes Bank slumped 11% while SBI, HDFC Bank and ICICI Bank fell over 2% each. Other financial stocks HDFC and Bajaj Finance slumped over 5% and 6%, respectively.

5) Meanwhile, Reliance Industries surged 10% after the conglomerate announced a $15 billion sale of a 20% stake in its oil-to-chemicals arm to Saudi Aramco.

6) Telecom stocks slipped after Reliance Industries Ltd unveiled plans to launch high-speed internet service under its telecom arm Jio, which has upended India's telecom sector. Bharti Airtel and Vodafone Idea, two of India's top three telecom firms, slipped 5% and 6%, respectively.

7) RIL chairman Mukesh Ambani on Monday announced the roll-out of Jio Fiber from September 5, promising free voice calls for life from landlines, 100 mbps minimum broadband speed at subscription starting from 700 a month and free HD TV set on commitment to an annual plan.

8) As part of Jio Fiber's premium offering - Jio First Day First Show - customers would be able to watch movies in their living rooms on the release day itself. This service will be launched in the mid-2020.

9) Cinema chains Inox Leisure Ltd and PVR Ltd also fell about 4% each.

10) The rupee weakened to a near six-month low of 71.29 against the US dollar, amid a broad strengthening of the greenback.

10) (With Agency Inputs)

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