The 30-share barometer, which had lost 129.21 points in yesterday's trade, fell further by 244.96 points, or 1.40 per cent, to 17,244.18 in early trade.
IIP data and TCS June quarter results are expected later in the day.
All sectoral indices, led by IT and realty, were trading in the negative zone with losses up to 4.85 per cent.
Similarly, the wide-based National Stock Exchange Nifty index declined by 72.00 points, or 1.35 per cent, to 5,234.30.
Brokers said market sentiments dampened after Infosys issued weak revenue guidance for the fiscal year ending March 2013. The company's Q1 FY 13 consolidated net profit up by 32.92 per cent at Rs 2,289 crore but weak revenue guidance for the fiscal year ending in March 2013.
They said a weakening trend on the Asian bourses following overnight losses on the US markets also had a negative impact.
Infosys tumbled 10.14 per cent to Rs 2,216.05 following a much lower-than-expected revenue guidance for the fiscal ending March 2013, dragging down down the IT sector index, which suffered the most by losing 4.85 per cent, traders said.
Infosys has 8.12 per cent weight in the 30-share Sensex pack.
In the Asian region, the Hong Kong's Hang Seng index fell 1.75 per cent, while Japan's Nikkei shed 0.67 per cent in the morning trade today. The US Dow Jones Industrial Average ended 0.38 per cent lower in yesterday's trade.
