The benchmark Sensex dropped below the 36,000-mark by falling over 124 points in early session today as participants trimmed positions ahead of the Union budget amid fresh outflow by foreign funds.

The 30-share index fell by 124.28 points or 0.34% at 35,909.45 in opening session as consumer durables, capital goods, IT, healthcare and teck stocks dropped.

The index had dropped 249.52 points in the previous session.

The 50-share NSE Nifty was trading lower by 38.95 points, or 0.35% at 11,010.70.

Sentiment turned cautious as investors preferred to reduce their positions ahead of the Union budget to be presented tomorrow.