The Bombay Stock Exchange benchmark Sensex lost 164 points in early trade on Tuesday on heavy selling by funds following weak global trend and depreciating rupee.
The 30-share index, which had gained 48.86 points in previous day's trading, fell by 163.97 points to 14,450.35.
Similarly, the National Stock Exchange benchmark Nifty dropped by 51.70 points at 4,283.65 as most of the heavy-weight stocks were trading in negative zone.
Market observers said trading sentiments were mainly dampened following a fall of between 2-2.5 per cent on the global stock markets.
They said depreciating rupee, which dipped to a 17-month low of 44.08 against the US currency, a level last seen on March 20, 2007, was another negative factor for the market.
Major losers which pulled the Sensex down were Reliance Industries, ONGC, Reliance Infra, RCom, State Bank of India, Larsen and Toubro, HDFC Ltd, HDFC Bank, ICICI Bank, DLF Ltd, ACC, Maruti Suzuki, NTPC and Hindalco.
However, stock such as Infosys Technologies, Satyam Computers, Tata Consultancy and Wipro were up on the back of strengthening US dollar.