The BSE Sensex opened gap down Monday, falling 1% tracking weakness in global markets. The benchmark extended losses as selling pressure gathered momentum on the Dalal Street. The broader Nifty index traded below the key 4,800 mark.
The latest trigger for the global selloff came from the US, where American employers added just 69,000 jobs in May, the fewest in a year. Economists had forecast a gain of 158,000 jobs. Economic news from all major economic regions was depressing. The unemployment in the 17 countries that use the euro currency stayed at a record-high 11 percent in April. China's manufacturing sector weakened in May.
The Sensex has now fallen nearly 500 points in two trading sessions in June. The sharp fall comes on the back of over 5% cut in May.
"This market is headed towards 4,550-4,600 and the 52 week-low is likely to be tested," independent analyst Sarvendra Srivastava said.
All groups of stocks traded lower on the BSE. High beta realty stocks (-3%) led the losses, followed by consumer durables stocks (-2.7%).
On the Nifty index, 48 of the 50 stocks traded in the red. Realty major DLF (-5.8%) was the top loser, followed by oil and gas major Cairn India (-4.6%). The Vedanta Group firm is hit when crude prices fall.
Commodity stocks like Hindalco (-3%) and JSPL (-2.9%) saw selling pressure on the back of global uncertainty. State Bank of India (-2.6%), which had seen significant gains on the back of Q4 earnings, led the losses in the banking sector. IT stocks also traded lower, led by Infosys (-1.72%).
Hero MotoCorp (0.7%), India's biggest two wheeler firm gained on the back of strong sales in May. Oil refiner BPCL (0.36%) rose after days of selloff.
The market breadth was extremely weak with only 9% stocks managing to advance on the BSE 500 index.
Asian markets also traded with deep cuts, with benchmarks in South Korea, Hong Kong and Japan falling 2-3% Monday. The Dow Jones index fell 275 points or 2.2% Friday.
"Global cues will decide the trend for markets... if ECB does not decide anything on Spain later this week, we could see lower levels," Avinnash Gorakssakar of Moneyinvestments.in said.
The latest trigger for the global selloff came from the US, where American employers added just 69,000 jobs in May, the fewest in a year. Economists had forecast a gain of 158,000 jobs. Economic news from all major economic regions was depressing. The unemployment in the 17 countries that use the euro currency stayed at a record-high 11 percent in April. China's manufacturing sector weakened in May.
The Sensex has now fallen nearly 500 points in two trading sessions in June. The sharp fall comes on the back of over 5% cut in May.
"This market is headed towards 4,550-4,600 and the 52 week-low is likely to be tested," independent analyst Sarvendra Srivastava said.
All groups of stocks traded lower on the BSE. High beta realty stocks (-3%) led the losses, followed by consumer durables stocks (-2.7%).
On the Nifty index, 48 of the 50 stocks traded in the red. Realty major DLF (-5.8%) was the top loser, followed by oil and gas major Cairn India (-4.6%). The Vedanta Group firm is hit when crude prices fall.
Commodity stocks like Hindalco (-3%) and JSPL (-2.9%) saw selling pressure on the back of global uncertainty. State Bank of India (-2.6%), which had seen significant gains on the back of Q4 earnings, led the losses in the banking sector. IT stocks also traded lower, led by Infosys (-1.72%).
Hero MotoCorp (0.7%), India's biggest two wheeler firm gained on the back of strong sales in May. Oil refiner BPCL (0.36%) rose after days of selloff.
The market breadth was extremely weak with only 9% stocks managing to advance on the BSE 500 index.
Asian markets also traded with deep cuts, with benchmarks in South Korea, Hong Kong and Japan falling 2-3% Monday. The Dow Jones index fell 275 points or 2.2% Friday.
"Global cues will decide the trend for markets... if ECB does not decide anything on Spain later this week, we could see lower levels," Avinnash Gorakssakar of Moneyinvestments.in said.
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