The Sensex fell 374 points and Nifty slumped below its crucial psychological level of 8,750 today, tracking weakness in global markets.
Here are 10 things to know:
1. Global stock markets witnessed a selloff today as investors' attention turned to American politics ahead of the first US presidential debate between Republican Donald Trump and Democrat Hillary Clinton.
2. Investors will closely watch how both the candidates would spell economic and business policies later in the day for the world's most powerful country.
3. About 20 per cent of the electorate remains undecided, a Reuters/Ipsos polling shows, far higher at this stage in the campaign than the 12 per cent undecided four years ago. "I think there could be some shift away from equities to the safer assets ahead of the US elections across the markets globally," said Ambareesh Baliga, a Mumbai-based independent market analyst.
4. Back home, investors were also cautious ahead of the upcoming monetary policy review on October 4, the first to be held under new RBI Governor Urjit Patel, amid expectations of a 25 basis point cut in the repo rate.
5. Anil Manghnani of Modern Shares and Stock Broker said that Indian markets have not broken the 50-day moving average since March. So 8,650 remains crucial level for Nifty, he added. Banking stocks were among the leading losers in trades today. Banking sub-index on the National Stock Exchange fell 1.6 per cent.
6. From the banking space, ICICI Bank was among the top loser, slumping 3 per cent. Axis Bank, IndusInd Bank and Bank of Baroda were among the other laggards.
7. Selling pressure was also seen in recent outperformers like auto, realty, FMCG and capital goods stocks. The respective indexes declined over 1 per cent each.
8. From the Nifty basket of 51 shares, 42 ended in the red. ONGC, Tata Motors, NTPC and Idea Cellular among major losers in the Nifty50 index.
9. Reliance Industries outperformed the benchmark indices. The stock rose as much as 2.42 per cent to hit fresh 52-week high of Rs. 1,129, before ending 0.40 per cent higher. The stock has been outperforming the Sensex and Nifty ever since the company launched telecom services under Reliance Jio.
10. The selling pressure was visible in broader markets as well. The BSE mid-cap and small-cap indices declined over 0.5 per cent each.