Falling for the third straight session, the 30-share index dropped by 158.30 points, or 0.49 per cent, to 31,855.89 with sectoral indices, led by realty, healthcare, capital goods, FMCG and bank, were trading in the negative terrain with losses up to 2 per cent.
The gauge had lost 311.22 points in the previous two sessions.
Brokers said continued selling by participants on muted earnings by some corporates and a weak trend in other Asian markets following weak Wall Street numbers on worries over tensions between the US and North Korea dampened sentiment.
In Asian markets, Japan's Nikkei fell 1.28 per cent, while Hong Kong's Hang Seng shed 0.66 per cent in early trade today. Shanghai Composite Index too was down 0.21 per cent.
The US Dow Jones Industrial Average closed 0.15 per cent lower in yesterday's trade.
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