Caution ahead of expiry of April series contracts in the derivatives segment tomorrow influenced sentiment.
The 30-share barometer was down by 122.06 points, or 0.46 per cent, to 25,885.24 in early trade, with sectoral indices led by banking, power and healthcare trading lower.
The index had risen 328 points yesterday, tracking a recovery in global stocks and oil prices.
The NSE Nifty dropped by 22.10 points, or 0.27 per cent, to 7,940.55.
Brokers said apart from profit-booking, a weak trend in Asia amid caution ahead of a closely watched Federal Reserve policy announcement later in the day and the start of Bank of Japan policy meeting mainly pulled the indices down.
Japan’s Nikkei fell 0.59 per cent while Hong Kong’s Hang Seng shed 0.31 per cent in early trade today. Shanghai Composite was quoting almost flat.
The Dow Jones Industrial Average ended 0.07 per cent higher in yesterday’s trade.
PTI