Global markets, including Indian bourses, crumbled on Friday as investors took a cautious approach ahead of the release of key numbers on jobs in the US.

While China’s slowdown woes still continue to haunt the markets, another blow came from the European Union, which has downgraded its inflation and growth forecast.

The global cues weighed heavily on Indian equity markets as they closed the week with a 4 per cent loss, the biggest weekly loss since November 2011.

52-week intra-day low On Friday, benchmark indices S&P BSE Sensex and CNX Nifty, ended 2 per cent down to close at 25,201.90 (losing 562.88 points) and 7,655.05 (-167.95 points), respectively, after hitting fresh 52-week intra-day lows of 25,119.06 and 7,626.85, respectively. The indices are down 7.6 per cent for the year to date.

“Only one theme on every trader’s mind today — US jobs report. And how that may possibly play on the Fed’s September rate decision,’’ Nicholas Teo, analyst at online trading platform provider CMC Markets in Singapore, told Reuters.

Global markets slump European markets were trading lower by 1.7-2.2 per cent. Among Asian indices, the Nikkei plunged the most, by 2.15 per cent, while Shanghai and Hang Seng ended down by 0.2 per cent and 0.5 per cent, respectively.

In the US, selling on Wall Street accelerated after the official monthly jobs report showed the US economy added 173,000 non-farm jobs last month while the unemployment rate dropped to 5.1 per cent. Traders fear this may lead the Fed to raise interest rates this month.

In India, amid broad based selling, realty, financials and auto stocks were hit. India VIX, a measure to gauge volatility, shot up by 9.56 per cent to 26.4225.

“The Nifty will receive strong support at 7,590-7,600 levels. Only if it breaches and sustains below these levels could we witness a fall to as low as 7,100,” said Arun Gopaln, Vice-President, Systematix Shares & Stocks.

Out of 1,568 stocks traded on the NSE, 1,313 declined while 210 advanced. Foreign institutional investors continued with their selling spree in September as well. On Friday, FIIs sold ₹394.31 crore despite the Finance Ministry’s re-assurance on the Minimum Alternate Tax. Domestic institutional investors bought for ₹840.35 crore on Friday. The rupee added to the woes again ending down at 66.4650 against the dollar on Friday.

Analysts said this could be a good time to invest in blue chip stocks. Sanjeev Zarbade, VP, Private Client Group Research, Kotak Securities, said, “Valuations are coming back to reasonable levels and long-term investors should go for stocks of quality companies.”

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