The Bombay Stock Exchange benchmark Sensex lost 186 points in early trade on Wednesday on selling by funds in heavy-weight stocks led by metal and banking sectors, triggered by a weak trend in global markets.
The 30-share index, which fell by 44.21 points in Tuesday's choppy trade, lost 186.24 points to 14,714.52.
Similarly, the wide-based National Stock Exchange's index Nifty fell by 51.75 points to 4,416.95.
Stock brokers said reports of subdued trend in global markets amid profit-taking by retail investors adversely affected the trading sentiments in Mumbai.
They said weakening rupee, which dipped to over 21-month low of 45.05 against the US dollar was another dampening factor.
Among metal stocks, Sterlite Industries continued to remain under selling pressure for the second straight session and lost Rs 38.70, or 6.72 per cent at Rs 537, Hindalco shed 60 paisa, or 0.48 per cent at Rs 125.15, while Tata Steel lost Rs 1.90, or 0.34 per cent at Rs 562.50.
Other losers were State Bank of India, ICICI Bank, HDFC Bank, HDFC Ltd, Reliance Industries, ONGC, Reliance Infra, RCom, BHEL, Larsen and Toubro, Infosys Technologies, Tata Consultancy Services, Mahindra and Mahindra, Tata Motors and Maruti Suzuki.
Meanwhile, Hong Kong's benchmark Hang Seng index moved down by nearly 360 points, or 1.8 per cent in line with overnight slump in the US markets.