The Indian stock markets felt a jolt after the US markets fell overnight due to recession concerns. The Asian indices were also trading lower, following the overnight fall of US markets. Wall Street fell as investors are concerned over the US economy’s outlook ahead of Friday’s labor report. 

The NSE Nifty 50 fell as much as 275 points to an intraday low of 24,859.60. On the other hand, the BSE Sensex pulled back 953 points to a level of 81,248.14. Out of 50 stocks traded in Nifty 50, 48 were quoting in the red. 

All the sectoral indices were trading in the red while PSU Bank lost the most, falling over 2%. Reliance Industries, HDFC Bank, and SBI were the major contributors behind the Nifty’s losses.

Furthermore, in the overseas markets, the U.S. Dollar struggled on Thursday tracking U.S. Treasury Yields which remained under pressure after private payrolls numbers were below expectations and raised expectations of a bigger-sized rate cut from the Fed this month. 

In the US, data also showed jobless claims dropped by 5,000 from the previous week to 227,000 on the period ending August 31st, below market expectations of 230,000, and reaching a new 7-week low, but this did not help either.

However, this was subsided as investors fear that subdued US microeconomic data could push the Fed chairman to postpone rate cut when it meets later this month for its policy decision meeting, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

The Dollar and the U.S. Treasury Yields started flat to weaker this early Friday morning in Asian trading ahead of the nonfarm payrolls and unemployment data tonight.

“On the domestic front, a slew of IPOs hitting the primary market over the next few weeks could weigh on the secondary market as investors would be looking to infuse funds in some of the big issues,” said Tapse. 

“Technically, after the early fall the Nifty has support at 24780 and below this, we could see more downside towards 24500 levels,” said Tapse.

Closing is important, if Nifty is able to hold above 24,900 then some recovery is expected, but expectations should be kept low, said Ajit Mishra, Senior Vice president of Research at Religare Broking. Going further, consolidation in markets may take place only if global markets see some stability.