The market extended previous day's losses with the Nifty Index Future struggling below 10,800 levels as Asian counterparts are under pressure after US President Donald Trump threatened more tariffs on Chinese products. China's Shanghai Composite dropped 3 percent while Hang Seng shed 2 percent and Japan's Nikkei slipped 1 percent.
The Sensex slipped 124.80 points to 35,423.46 and the Nifty shed 46.50 points to 10,753.40.
Oil retailers HPCL, BPCL and IOC are biggest losers among Nifty50 stocks, down 3 percent each.