The 30-share barometer, which had lost 738.38 points in the previous three sessions, fell by 102.96 points, or 0.38 percent, to trade at one-month low of 26,365.40.
All the sectoral indices, led by consumer durables, FMCG, healthcare, banking and capital goods, were trading in negative territory with losses about up to 0.99 percent.
Similarly, the National Stock Exchange index Nifty fell by 27.00 points, or 0.34 percent, to 7,884.85.
The brokers said that sentiments have been affected ever since the Supreme Court announced its verdict on coal block allocations on Wednesday, coupled with the government's decision to defer hike in gas price.
A subdued trend at other Asian markets in line with overnight sell-offs on US market also triggered selling by funds, they added.
Besides, weakening rupee that depreciated by another 15 paise against the dollar to trade at fresh seven-week low of 61.49 in the morning trade on Friday had a negative impact, brokers said.
Among other Asian markets, Japan's Nikkei was down 0.98 percent, while Hong Kong's Hang Seng shed 0.23 percent in the morning trade.
US Dow Jones Industrial Average ended 1.54 percent down in Thursday's trade.

Latest News  from Business News Desk