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Stock markets may continue the downslide in near-term amid declining global trend led by Euro zone crisis.
Analysts feel domestic GDP data, which came at less than expected level, has made the sentiments jittery and all eyes will now be on the forthcoming monetary policy on June 18.
News flow from the Euro zone region will dictate the short-term trend on the domestic bourses, they added.
“More downside cannot be ruled out. All eyes will be now on RBI monetary policy on June 18. Global developments will continue to influence the market sentiments,” Bonanza Portfolio Research Analyst, Mr Shanu Goel, said.
US stocks dropped more than two per cent on Friday, with the Dow turning negative for the year for the first time, after poor labour market figures showing a meagre 69,000 jobs were added in May.
That combined with dismal data on industry from the US, Europe, China and elsewhere to produce a picture of a sharply slowing global economy.
The Dow Jones Industrial Average closed down 274.88 points (2.22 percent) at 12,118.57.
Traders expect more volatility in June, with key events scheduled, such as IIP data, inflation number for May and RBI policy.
Apart from the domestic situation, Greece’s elections on June 17 will be watched very closely, experts said.
“For the current month we are expecting the market to remain volatile ahead of major outcome such as Greece elections and RBI meeting,” said Mr Shrikant Chouhan, Head of Technical Research, Kotak Securities.
Experts said investors will also watch the progress of monsoon rains.
“Stock market cues are negative at the moment, both internationally and domestically. With host of key events, June may see heavy volatile trading sessions,” Geojit BNP Paribas Research Head, Mr Alex Mathews, said.
Renewed concerns over decelerating Indian economic growth and Euro zone worries pulled down the BSE benchmark Sensex by 253 points to close below 16,000 mark at 15,965.16.
The economic growth rate slowed to a nine-year low, both in March quarter at 5.3 per cent as well as in 2011-12 at 6.5 per cent.
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