The 30-share barometer, which gained 326 points in last three sessions, fell by 129.23 points, or 0.76 per cent, to 16,903.33 with in five minutes of trading.
The wide-based National Stock Exchange index Nifty also declined 34.35 points, or 0.67 per cent, to 5,130.65.
Brokers said continued selling by funds amid a weak trend on Asian bourses following overnight losses at the US market mainly dampened the trading sentiment.
The weakening rupee, which hit a fresh all-time low of 56.87, also influenced the sentiment among foreign investors, they said.
In Asian region, the Hong Kong's Hang Seng index fell by 1.16 per cent, while Japan's Nikkei shed 0.93 per in early trade. The US Dow Jones Industrial Average lost 1.96 per cent in yesterday's trade.
