The gauge had lost 170.45 points in yesterday's volatile session.

In Asia, markets mostly fell in line with an overnight sell-off in the US markets, after growth data fell well short of forecasts.

European markets were, however, trading a shade higher in early trade.

"The F&O expiry and other other negative factors including muted Q4 earnings have dampened market sentiments," said a Delhi-based stockbroker.

Market heavyweights like HDFC plunged 2.70 per cent, Tata Steel fell 2.37 per cent, M&M tumbled 2.25 per cent, Tata Motors declined 2.21 per cent, Tata Power lost 1.94 per cent and Bharti Airtel 1.51 per cent.

Other prominent losers were Coal India, Dr Reddy's, ITC, Hero MotoCorp, Hindalco, Hind Unilever, Infosys and SBI.

Shares of Jindal Steel & Power slumped 4.16 per scent to close at Rs 139.55 after CBI filed a chargesheet against company's owner Naveen Jindal in connection with a coal block allocation scam case.

Foreign Portfolio Investors sold shares worth Rs 718.31 crore yesterday as per provisional data.

Meanwhile, stocks of transport and logistics firm VRL made a stellar debut today by surging 43.07 per cent to Rs 293.30 after climbing to Rs 309.10.

Stock markets will remain close tomorrow on account of Maharashtra Day.