The 30-share barometer, which has lost almost 168 points in the last two trading days, moved down further by 84.35 points, or 0.49 per cent, to 17,066.84.
Similarly, the broad-based National Stock Exchange Nifty index declined by 24.75 points, or 0.48 per cent, to 5,163.65.
Auto, realty and banking sectors were major losers, dragging the Sensex down.
Brokers said fresh selling by funds and retailers as sentiment remained bearish on disappointing Q4 earnings, a weakening rupee and subdued trend on the Asian bourses.
In the Asia region, Hong Kong's Hang Seng index fell by 0.48 per cent, while Japan's financial markets remained closed today for a public holiday.
The US Dow Jones Industrial Average ended 0.47 per cent lower in yesterday's trade on weak economic data. PTI SUN RS KPS
YB