The 30-share index ended 372.32 points or 0.62 per cent lower at 59,636.01. Similarly, the NSE Nifty fell 133.85 points or 0.75 per cent to 17,764.80. M&M was the top loser in the Sensex pack, shedding over 3 per cent, followed by Tech Mahindra, L&T, HCL Tech, Tata Steel and IndusInd Bank.
On the other hand, SBI, PowerGrid, HDFC Bank, Reliance Industries and HUL were among the gainers.
The domestic sentiment was impacted by the negative cues from other Asian markets coupled with inflationary pressures partially driven by a surging trend in energy prices, said Likhita Chepa, Senior Research Analyst, Capitalvia Global Research.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with losses. Stock exchanges in Europe were largely trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude slipped 0.46 per cent to USD 79.91 per barrel.