Mumbai, Aug 5 (IANS): Indian equities markets fell sharply in early trade Friday as global markets tumbled over fears of a recession in the US economy. A benchmark index for the Bombay Stock Exchange plummeted by a whopping 418 points.

Fears of another recession in the US gripped traders at Wall Street and around the world. Stock in the US fell sharply overnight as a slew of economic data indicated another bout of recession.

In Europe, along with the negative indicators in the US traders also hit the panic button on reports that a sovereign debt crisis faced by some countries could spread to other nations in the Euro zone.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) which opened at 17,350.37 points, was ruling at 17,274.23 points, down 418.95 points or 2.37 percent from its previous close at 17,693.18 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading in the red at 5,204.05 points, down 2.36 percent.

Broader markets too were weak. The BSE midcap index was ruling 3.13 percent down and the BSE smallcap index was trading 3 percent down.

In other major Asian markets, things were no different. The benchmark Japanese Nikkei was down 3.6 percent, the Chinese Shanghai Composite index was ruling 1.88 percent lower, while Hong Kong's Hang Seng had fallen a huge 4.66 percent Friday.