The 30-share barometer slipped below the 27,000-mark by falling 185.55 points, or 0.69 percent, to 26,875.49 with metal, FMCG, power, capital goods and IT stocks leading the fall.
The index had gained 65.17 points in the previous session on Friday.
On similar lines, the National Stock Exchange index Nifty moved down by 70.95 points, or 0.88 percent, to trade below the 8,100-mark at 8,034.55.
In the metal sector, stocks of Tata Steel fell 2.19 percent, Sesa Sterlite shed 1.33 percent and Hindalco lost 2.43 percent in the morning trade.
Brokers said that selling activity emerged largely on disappointing economic data as the country's industrial production growth slowed to 4-month low of 0.5 percent in July but easing retail inflation to 7.8 percent in August from 7.96 percent in July, restricted the fall.
Besides, a weak trend on other Asian bourses after data showing Chinese industrial output expanded in August at its slowest rate since the global financial crisis, influenced the sentiments, they said.
Among other Asian markets, Hong Kong's Hang Seng index was down by 0.75 percent in the morning trade, while Japan's financial markets are closed on Monday for a public holiday.

Latest News  from Business News Desk