The 30-share index was trading lower by 245.23 points, or 0.69 per cent, at 35,298.71.
Yesterday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.
The NSE Nifty fell 72.85 points, or 0.67 per cent, to 10,729.
Brokers said apart from political uncertainty in Karnataka, a weak trend at other Asian bourses following overnight losses at the Wall Street dampened sentiments.
Global markets were stumped after North Korea cancelled high-level talks with Seoul and threatened to call off the much anticipated summit with the US if it was pushed into unilaterally giving up its nuclear arsenal.
Back home, trade deficit widened to USD 13.7 billion in April, which further affected trading sentiment.
Prominent losers included Hero MotoCorp, ICICI Bank, SBI, Adani Ports, RIL, ONGC, Axis Bank, Bajaj Auto, M&M, Coal India, IndusInd Bank, NTPC and Bharti Airtel, falling by up to 3.27 per cent.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 518.47 crore, while domestic institutional investors (DIIs) bought shares worth Rs 531.33 crore yesterday, as per provisional data.
Among other Asian markets, Hong Kong's Hang Seng shed 0.49 per cent while Japan's Nikkei was down by 0.38 per cent in early trade today. The Shanghai Composite Index too inched lower by 0.25 per cent.
The US Dow Jones Industrial Average ended 0.78 per cent lower yesterday.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)