The Bombay Stock Exchange benchmark Sensex lost 146 points in early trading on continued selling by funds, triggered by weak Asian cues.
The 30-share index fell by 146.05 points to 17,276.46 points in the first five minutes of trade. The BSE barometer had lost 278.62 points in the last four session.
The wide-based National Stock Exchange index Nifty lost 50.85 points at 5,169.55 points at the same time.
Marketmen said selling emergered following steep fall in global stock markets.
They said the funds were seen booking profit in some of the gainers in previous session.
Among Asain markets, Japanese Nikkei fell 0.89 per cent, while Hong Kong's Hang Seng slumped 1.71 per cent and the Shanghai Composite Index fell 1.46 per cent after US markets closed lower overnight.
The Dow Jones Industrial Average dropped 36.73 points, or 0.34 per cent after fears of weak earnings by US companies.