Extending its losses for the second session, BSE benchmark Sensex dropped by nearly 200 points in early trade today on sustained selling by foreign funds and retail investors amid weak Asian cues.


Investors turning cautious ahead of the release of US jobs data and oil prices retreating in global market also led to dampened sentiment on domestic bourses.


The 30-share index was trading lower by 199.97 points, or 0.75 per cent, to 26,359.95. The gauge had lost 92.89 points in the previous session. All the sectoral indices led by realty, banking and consumer durables were trading in the red, falling by up to 1.07 per cent.


The NSE Nifty fell 62.15 points, or 0.76 per cent, to 8,130.75 in early trade. Brokers said steady capital outflows by foreign funds and losses across Asia amid caution ahead of the release of US jobs data -- to be released today -- made the domestic equities heedful.