The 30-share barometer, which gained nearly 112 points in the previous sessions, fell by 252.07 points, or 1.54 per cent, to 16,076.18.
Stocks of auto, realty, banking, capital goods and metal sectors were under pressure, dragging down the Sensex.
Similarly, the wide-based National Stock Exchange Nifty index slid by 75.05 points, or 1.51 per cent, to 4,867.75 points.
Market experts said sentiments turned bearish largely on subdued trend on the other Asian bourses and profit-taking by speculators after previous sessions of gains.
In the Asian region, the Hong Kong's Hang Seng index shed 2.46 per cent and the Japan's Nikkei was trading 1.28 per cent down this morning. In the US, the Dow Jones Industrial Average ended 0.50 per cent lower in the previous session.
