The 30-share index fell 164.32 points or 0.54 percent to 29,763.02 with sectoral indices led by healthcare, FMCG, metal, power and capital goods, were trading in the negative territory with losses up to 0.61 percent.
The gauge had lost 40.90 points in the previous session after the Reserve Bank left the key policy rate unchanged, in line with Street expectations.
The 50-share NSE Nifty also dropped by 49.35 points or 0.53 percent to 9,212.60.
Brokers said continued selling by participants, tracking a weak trend in other Asian markets as US missile strike against Syria fuelled geopolitical concern, dampened sentiments.
Shares of Reliance Inudstries were quoting 1.75 percent lower at Rs 1,413.15 after Telecom regulator Trai on Thursday ordered Mukesh Ambani-led Reliance Jio to withdraw the three-month 'complimentary' offer of unlimited data usage and free calls on payment of a minimum Rs 303.
Other losers were Sun Pharma, Adani Ports, Power Grid, Coal India, HDFC Ltd, ITC Ltd, Tata Motors and Lupin, falling by up to 2.38 percent on profit-booking.
Among other Asian markets, Japan's Nikkei fell 0.10 percent while Hong Kong's Hang Seng shed 0.67 percent in early trade on Friday. Shanghai Composite Index, however, up 0.19 percent.
The US Dow Jones Industrial Average closed 0.07 percent higher in Thurday's trade.