The 30-share barometer, which had lost 16.90 points in yesterday's trade, fell further by 103.02 points, or 0.60 per cent, to 17,198.89 in early trade today.
All sectoral indices, led by realty and auto, were trading in the negative zone with losses of up to 1.02 per cent.
Similarly, the wide-based National Stock Exchange Nifty index declined by 34.95 points, or 0.67 per cent, to 5,204.20.
Brokers said market sentiment remained weak on fresh selling by funds and retail investors on lack of any encouraging factors.
In addition, overnight losses at the US markets on weak report on private jobs growth and poor economic reports from Europe dampened sentiments, they added.
However, sugar company stocks were in demand following the government's decided to free sugar export.
Shree Renuka sugar gained 5.83 per cent to Rs 32,65, Balrampur Chinni mills was up 4.11 per cent to Rs 55.75 and Dwarkesh Sugar Industries rose by 7.53 per cent to Rs 38.55.
Meanwhile, in the Asia region, Hong Kong's Hang Seng index was trading 0.45 per cent higher, while Japan's financial markets were closed for 'public holiday'.
The US Dow Jones Industrial Average ended 0.08 per cent lower in yesterday's trade. PTI SUN RS KPS YB
