A weak trend on other Asian markets following overnight sell-off in US markets also triggered selling by participants.
The 30-share barometer, which gained 390.49 points in the previous session, fell by 335.90 points, or 1.26 percent, to 26,301.38, with all the sectoral indices, except IT and Teck, trading in negative zone with losses up to 2.21 percent.
Similarly, the National Stock Exchange index Nifty moved down by 106.05 points, or 1.33 percent, to 7,854.50.
Brokers said besides profit-booking by speculators, a weak trend on other Asian bourses, tracking a drop in US markets on growing concerns about the global economy as the head of the IMF warned that eurozone could slip into recession, influenced sentiments.
They said, however, rally in Infosys on the back of good second quarter earnings, avoided further dip in the benchmark index.
Infosys' shares soared 5.61 percent to Rs 3,850.05 after the company's consolidated net profit rose by 28.6 per cent to Rs 3,096 crore in July-September 2014 quarter.
Among other Asian markets, Japan's Nikkei was trading 0.98 percent down, while Hong Kong's Hang Seng shed 1.45 percent in morning trade on Friday.

The US Dow Jones Industrial Average ended 1.97 percent lower in Thursday's trade.

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