A morning walk down Dalal Street | For bulls to regain control, Nifty must close above 11,395-11,434

The S&P BSE Sensex breached 38,000 on the downside while the Nifty50 slipped below 11,400.

Both global, as well as domestic factors, led the fall on Indian markets. Fears of global slowdown fuelled by US Fed to effectively move away from hiking interest rates and the inversion of US bond yield curve (between 3 months and 10 year) has led to concerns of the possibility of US economic recession. 

Historically, inversion of the yield curve has always preceded the impending recession. Further, the macro-economic readings such as PMI from Germany and France have not helped as some of them came at multi-year lows.