The 30-share barometer, which had lost 54.53 points in the previous session, fell by 130.78 points, or 0.48 percent, to 27,134.54.
All the sectoral indices, except healthcare, were trading in negative zone with losses up to 0.97 percent.
Also, the broad-based National Stock Exchange index Nifty shed 36.15 points, or 0.44 percent, to 8,116.80.
Equity brokers said that increased profit-booking by retail investors at higher levels amid weak trend on other Asian bourses following overnight losses on US market dampened trading sentiment.
Meanwhile, the rupee also weakened by 23 paise to 60.83 against US currency in the morning trade at the Interbank Foreign Exchange market due to dollar's gains against other currencies overseas.
Among other Asian markets, Hong Kong's Hang Seng fell by 1.06 percent, while Japan's Nikkei moved down by 0.38 percent in the morning trade.
However, US Dow Jones Industrial Average ended 0.57 percent lower in Tuesday's trade.

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