The 30-share barometer, which had lost 62.52 points in the previous session on October 1, fell by 137.34 points, or 0.51 percent, to 26,430.65 in morning trade.

On similar lines, the National Stock Exchange index Nifty shed 48.40 points, or 0.60 percent, to 7,897.15.

Stock exchanges remained closed on October 2, 3 and 6 for Gandhi Jayanti, Dussehra and Id-ul-Zuha, respectively.

Brokers said apart from weak Asian cues, capital outflows by foreign funds and selling by retail investors ahead of earnings season beginning on Friday, dampened trading sentiments here.

Among other Asian markets, Hong Kong's Hang Seng fell 0.39 percent, while Japan's Nikkei moved down by 0.20 percent in morning trade.

The US Dow Jones Industrial Average ended 0.10 per cent lower in Monday's trade.

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