The 30-share index ended 433.13 points or 0.72 per cent lower at 59,919.69. Similarly, the Nifty fell 143.60 points or 0.80 per cent to 17,873.60.
SBI was the top loser in the Sensex pack, shedding around 3 per cent, followed by Bajaj Finserv, Tech Mahindra, Sun Pharma, Bajaj Finance and Axis Bank.
On the other hand, Titan, M&M, Reliance Industries and TCS were among the gainers.
“Indian markets opened on a negative note following mixed Asian market cues and higher than expected inflation data reported in US raising concerns of an earlier-than-expected hike in interest rates in the world’s largest economy,” said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
Further, he noted that continuous foreign fund outflows subdued traders’ sentiments. FIIs have sold equities worth Rs 5,515 crore so far this month.
Elsewhere in Asia, bourses rebounded in Shanghai, Hong Kong and Tokyo ended with gains, while Seoul was in the red.
Major indices in Europe were trading on a positive note in mid-session deals.
Meanwhile, international oil benchmark Brent crude rose 0.63 per cent to USD 83.16 per barrel.