The markets are weak in the early deals with the Nifty slipping below the 2900 mark. The benchmark Sensex is down 2.4 percent to 9530 levels. Heavy selling is seen in metal and realty stocks.
“ The Sensex can go down to 8500 levels while the next support for Nifty is between 2750 and 2800. The markets are expected to bounce back from those levels,” said Sandeep Wagle, chief technical analyst with Angel Broking.
Asian stocks are trading sharply lower with South Korea's market sinking more than 7.6 per cent to below the 1000 mark. Nikkei and Hang Seng also slumped more than 5.3 per cent.
All sectoral indices on the BSE are trading in the red turf, down over 1 per cent each. The BSE metal index is down 4.7 per cent while the realty index has shed 4.4 per cent.
The banking index has lost 2.7 per cent ahead of the RBI credit policy meet.
Among the Sensex scrips, Hindalco is the biggest loser, dropping more than 11 per cent. Sterlite, Tata Steel and HDFC Bank are the other main losers, each down by more than 5 per cent.
Wall Street spent another session buffeted by volatility on Thursday, closing mixed after investors wrestled with their fears about the economy but also looked for bargains after two days of selling.
While the Dow Jones industrials and Standard & Poor's 500 index rose sharply, a downdraft in tech stocks left the Nasdaq composite index with a loss.
(With AP inputs)