The 30-share barometer, which had lost 126.43 points in yesterday's trade, fell further by 148.15 points, or 0.91 per cent, to 16,164.00 in early trade.
All sectoral indices, led by banking and auto, were trading in the negative zone with losses of up to 1.84 per cent.
Similarly, the wide-based National Stock Exchange Nifty index declined by 43.05 points, or 0.87 per cent, to 4,907.70.
Brokers said market sentiment remained weak on continued capital outflows by foreign funds on weakening trend in global markets on persistent euro-zone worries and weak economic data.
Besides, continued slide in the rupee against the dollar, too, triggered selling pressure, they said.
The rupee touched new low levels of Rs 56.50 by falling 26 paise against the dollar on strong month-end demand for the American currency from importers and concerns over slowing economic growth and widening trade deficit.
In the Asian region, the Hong Kong's Hang Seng index fell 1.6 per cent, while Japan's Nikkei shed 1.84 per cent in the morning trade today. The US Dow Jones Industrial Average ended 1.28 per cent lower in yesterday's trade.
