The 30-share barometer, which lost 141.97 points in the previous session, lost another 127.61 points, or 0.69 per cent, to 18,200.37 points today, with metals, IT and capital goods stocks leading the fall.
In a similar fashion, the wide-based National Stock Exchange Nifty index moved down 43.80 points, or 0.79 per cent, to 5,450.60 points.
The trading sentiment remained bearish on the back of a weakening trend on other Asian bourses due to unrest in Saudi Arabia and overnight losses in the US market due to weak economic data, brokers said.
They said a cautious approach adopted by participants ahead of the release of IIP data for the month of January later today also influenced the sentiment.
Meanwhile, in the Asia region, Hong Kong`s Hang Seng index was down by 0.67 per cent and Japan`s Nikkei by 1.3 per cent in early trade this morning. In the US, the Dow Jones Industrial Average ended 1.87 per cent lower yesterday.