The 30-share index BSE Sensex started the day in the negative zone as sentiment turned pessimistic in worldwide markets accompanying deprived US jobs data and worries of a slump in the Chinese market.
All sectoral indices remained negative with capital goods, metals, banks and technology stocks topping the declining charts.
At 09:40 a. m., the Sensex dropped 183.53 points to rule at 15,781.63 after touching a high of 15,831.54 and a low of 15,766.21.
The broad-based Nifty stood at 4,778.15, down 63.45 points, after hitting a high of 4,797.85 and a low of 4,777.10 today.
The BSE index is near to rubbing out its gains for the year, presently at 15,761.48 points as compared to its 15,454.92 close at the end of 2011.
Blue-chip stocks led the declines, tracking a more than 2 percent fall in the MSCI Asia-Pacific ex-Japan index, the report added.
As per an Angel Broking note, "The Wall Street selloff came on account of the release of a report from the Labor department showing much weaker than expected job growth in the month of May. A weaker than expected manufacturing report from China proved to be a precursor to several similar manufacturing reports from countries across Europe. However, the disappointing US employment report appears to have had the largest impact on investors."
"Momentum is still weak on hourly charts and is fading away on daily charts. Also, there are no signs of a reversal/slowdown in price action yet. Hence, the current weak tone could extend and push the index further lower towards the recent low of 4,789 and even the chart-gap (10 January) support at 4,749 in the coming 2-3 sessions. On the higher side, stiff resistance is likely to be seen in the region of 4,867/4,889 (13-hour EMA) on any intraday rallies. Only a move above 4,949 will stall the prevailing weak tone and invite a notable recovery in prices," the reports added.
The BSE Midcap Index remained down by 1.24% and the BSE Smallcap Index lost 0.72%.
Among sectoral indices, the BSE Metal Index shed 1.77%, the BSE IT Index fell 1.46%, the BSE Capital Goods Index declined 1.46% and the BSE Bankex remained down by 1.43%.
Among the major Nifty losers were Cairn India, Jindal Steel, SBI, DLF and Hindalco Ind.
The gainers’ list consisted of Hero MotoCorp and BPCL.
Oil prices remained under pressure accompanying fears of slowing worldwide demand.
Brent crude oil dropped over $1 to $97.36 a barrel as compared to its earlier close.
In the meantime, the Indian unit toughened as compared to the US currency after a feeble beginning.
FIIs sold equities worth Rs 220.38 crore on June 01, according to provisional stock exchange data.