The 30-share index, in its first trading after the Budget, tumbled 570.75 points to 17,007.97 in the first five minutes of trade.
The Sensex fell by 246 points on Friday, after Finance Minister P Chidambaram's Budget proposal to increase the short-term capital gains tax to 15 per cent.
Similarly, the Nifty index on the wide-based National Stock Exchange dipped by 171.20 points to 5,052.30 as most of the index related heavy-weight stocks lost notable grounds.
The marketman said, a weak global trend mainly pulled down the share prices in early trading.
Hong Kong share prices opened down 3.5 per cent today over worries of inflation and slowing down of domestic growth as well as concerns about the recession in the US economy.