The Bombay Stock Exchange benchmark Sensex fell by 117 points in early trade on Friday on heavy selling by funds.
The 30-share index, Sensex, which had gained 43.71 points in the previous session, lost 117.33 points at 14,999.92 on heavy selling by funds after a further rise in inflation data.
Similarly, the wide-based National Stock Exchange's index Nifty plunged by 32.65 points to 4,491.20.
Stock brokers said the rise in inflation to 12.01 per cent for the week ended July 26 was the main cause of concern for the market.
They said overnight weakness at US markets was another dampening factor.
Major losers, which dragged the Sensex down were Reliance Industries, Tata Motors, Maruti Suzuki, Grasim Industries, HDFC Bank, ICICI Bank, HDFC Ltd, Infosys Technologies, Tata Consultancy, Wipro, BHEL, Larsen and Toubro and DLF Ltd.