The Bombay Stock Exchange benchmark Sensex on Tuesday lost nearly 136 points in early trade on sustained selling by funds.
The 30-share Sensex, which had lost 65 points on Monday, fell further by 135.53 points to 19,497.83 in the first five minutes of trade.
The wide-based National Stock Exchange index, Nifty, too fell by 65.19 points to 5842.55.
Marketmen said selling by foreign funds amid reports of steep fall in Asian stock markets mainly pulled down the share prices in Mumbai.
The Hong Kong share market opened sharply lower on Tuesday after losses on Wall Street renewed fears about the US economy and trouble in the high-risk mortgage market, they added.