Equity markets suffered heavy losses on Friday as the 30-share BSE Sensex slipped 1,093 points to close at 58,840.79. The broader 50-share NSE Nifty also slumped by 346.55 points to close at 17,530.85.

Both the indices lost nearly 2%.

A World Bank prediction that the global markets could be heading towards a recession led to poor sentiments among investors, Moneycontrol reported.

“Several historical indicators of a global recession are already flashing warnings,” the World Bank said on Friday. “The global economy is now in its steepest slowdown following a post-recession recovery since 1970.”

Traders are also anticipating another hike in policy rates – the third this year – from the United States Federal Reserve.

On Friday, all sectoral sub-indices lost more than 1% in the Indian equity markets. The Nifty Realty index lost 3.72%, while the Nifty IT index declined by 3.71%. The Nifty Auto index was also down by 2.7%.

The UltraTech Cement stock suffered the highest losses on the BSE as its shares declined by 4.51%. Shares of Tech Mahindra, Infosys, Mahindra and Mahindra, Wipro and TCS also suffered losses in the range of 3.20% to 4.5%.

Meanwhile, the rupee declined by 7 paise to close at 79.78 against the US dollar on Friday, according to PTI.