Mumbai, Aug 8 (IANS): Indian equities markets fell sharply in early trade Monday, continuing the free fall, as global markets were jittery after a US sovereign debt downgrade over the weekend.

The top credit rating agency in the US, Standard and Poor's, had downgraded the sovereign debt rating of the world's largest economy and cautioned of a further downgrade if the fiscal position of the country did not improve.

A benchmark index for the Bombay Stock Exchange (BSE) plummeted by a massive 511 points in early trade before recovering a bit.

The 30-scrip sensitive index (Sensex) of the BSE recovered a bit but was still trading with a loss of 433 points or 2.51 percent at 16,871.97 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading in the red at 5,083 points, down 2.46 percent.

Broader markets too were weak. The BSE midcap index was ruling 2.47 percent down and the BSE smallcap index was trading 3.04 percent down.

Other major Asian markets too were losing heavily despite efforts by policymakers around the world to restore confidence in financial markets.

The benchmark Japanese Nikkei was down 2.07 percent, the Chinese Shanghai Composite index was ruling 3.68 percent lower, while Hong Kong's Hang Seng had fallen a huge 4.29 percent Monday.