The 30-share barometer, which lost 220 points in the last two trading sessions, plunged by 253.37 points, or 1.56 per cent, to 15,965.16, a level last seen on May 23.
The broad-based National Stock Exchange index Nifty settled below 4,900 level by dropping 82.65 points, or 1.68 per cent, to 4,841.60.
Beaten by a slump in GDP numbers, the market received another jolt following a fall in manufacturing growth in India as well as in China.
While the GDP grew at 5.3 per cent last quarter, a 9-year low.
Foreign funds were net sellers of Indian stocks for the second month in May by pulling out USD 161 million, after withdrawing USD 103 million in April.
Market sentiment was also hurt by a weak trend in the Asian region and lower opening in Europe on disappointing US data and Chinese manufacturing numbers.
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IT stocks, which get over 50 per cent of their revenue from Europe and the US suffered heavy losses. TCS dropped 1.69 per cent to Rs 1,224.75 and Infosys declined by 2.13 per cent to Rs 2,387.80.
The most heaviest on the index RIL plunged 3.16 per cent to Rs 683.70, heavy machinery major L&T by 3.22 per cent to Rs 1,134.50 and BHEL by 2.48 per cent to Rs 206.70.
The capital goods sector suffered heavy losses by 2.99 per cent to 8,553.10 followed by power index by 2.49 per cent to 1,768.73.
Auto sector index extended losses for the third straight day by falling 2.17 per cent to 8,680.30 on reports of fall in vehicle sale in May.