Mumbai, Aug 5 (IANS) Indian equities markets in afternoon trade Friday continued to reel under intense selling pressure, joining other global markets which tumbled over fears of a recession in the US economy.

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 a double-dip recession.

Besides the negative indicators in the US, traders in Europe 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 17,192.95 points, down 500.18 points or 2.38 percent from its previous close at 17,693.18 points.

It had fallen over 700 points, below the 17,000 mark in intra-day trade.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading in the red at 5,175.85 points, down 2.92 percent.

Broader markets too were weak. The BSE midcap index was ruling 3.49 percent down and the BSE smallcap index was trading 4.32 percent down.

The market breadth was negative with only 256 stocks advancing compared to 2,541 scrips declining and 46 remaining unchanged.

In other major Asian markets, things were no different. The benchmark Japanese Nikkei clsoed 3.72 percent lower at 9,299.88 points.

The Chinese Shanghai Composite index ended 2.15 percent lower t 2,626.42 points, while Hong Kong's Hang Seng was trading with a huge 5.31 percent loss at 20,721.88 points.

European markets too fell sharply in opening trade.

Britain's FTSE 100 was ruling 3.48 percent down at 5,205.23 points, and the French CAC 40 was ruling 2.47 percent lower at 3,238.38 points.

The German DAX was 3.46 percent down at 6,192.63 points.