Besides, fresh weakness in the rupee had negative impact. The 30-share barometer, which had lost 319 points in the past two sessions, tanked 274.28 points, or 1.07 per cent, to 25,314.73.
All the sectoral indices, led by banking, PSU and oil and gas were trading in negative zone with losses up to 1.63 per cent. Similarly, the National Stock Exchange index Nifty dipped below the 7,600-mark by falling 83.35 points, or 1.09 per cent, to 7,565.90.
Brokers said a subdued trend in Asian trade on overnight losses in the US markets after geopolitical tensions worsened in Iraq and Russia, dampened the trading sentiments here.
Meanwhile, the rupee fell sharply by 38 paise to Rs 61.60 against the US dollar in early trade today.
Among other Asian markets, Japan's Nikkei tumbled three per cent, while Hong Kong's Hang Seng shed 0.33 per cent in early trade. The US Dow Jones Industrial Average ended 0.46 per cent down in yesterday's trade.