Heavyweights HDFC, HDFC Bank, Mahindra Mahindra contributed most to losses on Sensex.
Domestic stock markets started Wednesday's session on a negative note amid weak cues from Asian peers and foreign fund outflows.
The SP BSE Sensex dropped as much as 218.79 points to touch 36,035.78, while Nifty50 barometer of National Stock Exchange declined 70.8 points to 10,839.30.
Selling pressure witnessed in auto and metal stocks weighed on indices.