The 30-share index resumed higher at 22,717.59 but moved in a narrow range before settling at 22,631.61, a loss of 56.46 points or 0.25 per cent from its previous close, recording losses for the second day in a row.
It had dropped 188.47 points on Friday. The NSE Nifty also moved lowed by 21.50 points or 0.32 per cent to finish at 6,721.25.
Markets have seen strong rally in the recent past and factors such as global cues and Lok Sabha election results can have major impact on near term trend, said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
Asian stocks ended lower as investors weighed prospects of Russia coming under fresh sanctions over the Ukraine crisis. Key benchmark indices in Japan, China, Hong Kong
Singapore and South Korea fell by 0.12-1.62 per cent, while from Taiwan moved up by 0.41 per cent.
European stocks were trading higher in their early trade with a slew of merger and acquisition news seen improving sentiment in the market. Key benchmark indices in France, Germany and UK moved up by 0.38-0.70 per cent.
Reports said the US was preparing to levy fresh sanctions against Russia for Moscow's failure to uphold terms of an agreement with that calls for withdrawal Russian forces from the border with Ukraine.
Among Sensex stocks, * GAIL at 2.13 per cent, * Bharat Heavy Electricals a 2.10 per cent, Hero MotoCorp 1.81 per cent, Tata Motors 1.72 per cent, Larsen & Toubro 1.60 per cent, Hindalco Industries 1.53 per cent, * Coal India 1.43 per cent were biggest losers of the day
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 295.01 crore on Friday, as per provisional data from the stock exchanges.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services, said: "Indices lost almost half per cent during the day as the tensions in Ukraine augmented which also harmed other Asian indices and forced them to trade weak."
Among the S&P BSE sectoral indices, consumer goods dropped by 1.01 per cent, followed by Auto 0.97 sanctions, Metal 0.53 sanctions and FMCG 0.42 sanctions while healthcare rose by 1.65 sanctions and Realty 0.57 per cent.
Mid-cap and Small-cap indices firmed up by 0.88 per centand 0.26 per cent on good demand from retail investors.
The market breadth turned positive as 1,451 stocks ended in the green, 1,335 stocks finished in the red while 146 ruled steady.
The total turnover dropped to Rs 2,765.58 crore from Rs 3,065.63 crore last Friday.