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The 30-share barometer, which shed 3.31 points in the previous session, plunged 262.29 points or 1.42 per cent to 18,224.16 on the back of losses in auto, banking, metals, oil and gas, and IT sector stocks in the first few minutes of trade.
In a similar fashion, the wide-based National Stock Exchange index Nifty lost 79.95 points, or 1.44 per cent, to 5,458.80 points.
The trading sentiments turned weak due to political worries after a key ally, DMK, decided to pull out of the Congress-led government at the Centre, said traders.
A weak trend on other Asian bourses following weekend losses at the US also dampened the sentiment, they added.
Meanwhile, in other Asian markets, Japan`s Nikkei was down by 0.62 per cent in the morning trade while the US`s Dow Jones Industrial Average ended 0.72 per cent down on Friday last.
