The 30-share index resumed lower at 16,899.01 and dropped further 16,802.03 before quoting at 16,808.99 at 1025 hours, showing a net fall of 109.09 points, or 0.64 per cent, from yesterday's closing.
Major losers were Jindal Steel (2.28 per cent), Wipro (2.15 per cent), Hindalco Ind (1.79 per cent) and Hul (1.65 per cent).
The NSE 50-share Nifty also moved down by 28.15 points, or 0.55 per cent, to 5,100.05.
Asian stocks fell in early trade on concerns that China's economic slowdown and Europe's debt crisis would threaten growth across the globe.
Key benchmark indices in South Korea, Singapore, Japan and Hong Kong declined between 0.06 per cent and 0.72 per cent. However, key indices in China and Taiwan rose in the range of 0.06-0.3 per cent.
FIIs sold shares worth a net Rs 252.91 crore yesterday as per provisional data released by the stock exchanges.
The market may remain volatile in the immediate future as traders roll over positions from the near-month July, 2012 series to August, 2012 series as the July contracts will expire tomorrow.