The 30-share benchmark index ended 211.45 points lower at 20,090.68 with 21 of its components closing in the red.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 1.44 percent or 87.30 points lower at 5,990.50 on Wednesday.
Measures by the Reserve Bank of India (RBI) to tighten cash conditions in order to support the weak rupee hurt lenders' stocks weighing down sentiment.
Meanwhile in the New Delhi bullion market, gold lost Rs 35 to Rs 28,330 per 10 grams while silver declined by Rs 140 to Rs 41,980 per kg.
--IBNS (Posted on 24-07-2013)