The rupee's weakness against the dollar too dampened the overall mood.
The 30-share index fell 100.07 points, or 0.30 per cent, to 32,702.37, with sectoral indices of banking, auto, metal and PSU trading dropping up to 1.76 per cent.
The gauge had lost 67.28 points in the previous session.
Brokers said sentiment remained somewhat subdued as investors kept their positions at a low ebb amid expectation that the central bank may keep rates unchanged.
Major losers were SBI, ICICI Bank, HDFC Bank, Axis Bank, HDFC Ltd, Maruti Suzuki, Bajaj Auto,Hero MotoCorp, Tata Steel, ITC Ltd and Wipro.
Among the Asian bourses, Hong Kong's Hang Seng was down 1.12 per cent while Japan's Nikkei shed 0.90 per cent. Shanghai Composite Index too fell 0.61 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.45 per cent lower yesterday.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)