Domestic stock markets took a sharp dive on Friday, with the BSE Sensex plummeting by 900 points and the NSE Nifty50 dropping over 1% as well.

The Sensex was trading around 81,317, while the Nifty50 slipped to 24,889 by mid-morning.

Santosh Meena, Head of Research at Swastika Investmart Ltd., said the dramatic drop comes after the Indian markets had been holding steady at all-time highs.

Today's market turbulence is partly linked to investor jitters ahead of the US non-farm payrolls report expected later today.

"One key factor could be weaker job data from the USA, fuelling concerns about a potential global economic slowdown," he said.

Analysts predict an increase of 165,000 jobs and a drop in the unemployment rate to 4.2%Hyderabad Investment. However, concerns about weaker job openings and a possible rate cut by the Federal Reserve have added to the market uncertainty.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “If the August jobs data falls short of expectations and unemployment rises, the Fed might cut rates by 50 basis points. This could worry the markets further, especially with fears of a potential slowdown.”Pune Wealth Management

Additionally, India's weight in the MSCI Emerging Markets index has surpassed China’s, reaching its highest level.Kolkata Investment

"This raises the risk of a strategic reduction in weight allocation, especially given India's relatively high valuations," Meena said.

From a technical standpoint, Meena highlighted that the Sensex is currently testing a crucial support level at 24,850.

If the index falls below this point, it could trigger further declines towards 24,500 and 24,000Kanpur Stock. Conversely, if the markets recover, key resistance levels are at 25,150, 25,330, and 25,500.

The broad market decline affected all sectors. Major companies like Reliance Industries, SBI, ICICI Bank, and Infosys were among the top contributors to the drop.

Sector-specific indices, such as Nifty PSU Bank and Oil & Gas, fell over 2%, while others like Auto, Media, and Metal dropped by more than 1%. Small-cap and mid-cap stocks also faced losses, down by 0.9% and 1.3%, respectively.

Globally, MSCI's Asia-Pacific index saw a minor gain of 0.2%, while Japan’s Nikkei slipped slightly. US futures also showed declines. In the domestic market, foreign institutional investors (FIIs) sold equities worth ₹688 crore, whereas domestic institutional investors (DIIs) bought equities worth ₹2,970 crore.Kanpur Wealth Management

Oil prices remained steady with Brent crude at $72.7 and US West Texas Intermediate at $69.16. The Indian rupee appreciated slightly, trading at ₹83.9350 against the US dollar.

The current market conditions reflect a mix of global uncertainties and domestic factors affecting investor sentiment.