Sensex falls 108 pts on weak global cues

Snapping three sessions of upsurge, theBSE benchmark Sensex on Monday fell 108 points on profit booking by investorsamid a weak global trend.

The Bombay Stock Exchange 30-share index, Sesnex, which hadgained 972 points in last three sessions , fell 108.13 points, or 0.64 per centto 16,713.33.

The decline was led by refinery, IT and healthcare sectors.

Selling pressure gathered momentum as investors bookedprofits after the stock market surged 6.1 per cent in last three sessions.

A weakening trend in the Asian region and lower opening inEurope after weak job growth in the US fuelled concerns that the globaleconomy is faltering.

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The National Stock Exchange index Nifty fell by 22.80points, or 0.45 per cent to 5,017.20, after touching a low of 4,964.45.

Reliance Industries and Infosys, with over 20 per centweight in the Sensex, closed with losses. RIL dropped by 2.05 per cent to Rs788.90 and Infosys by 2.23 per cent to Rs 2,263.85.

IT companies, which get more than 50 per cent of theirrevenues from the US and European markets, remained weak following turmoil inglobal financial markets, while banking stocks declined on fears of more hikein interest rate to tame inflation.

Meanwhile, food inflation re-entered double digit at 10.05per cent for the week ended August 20, worrying investors that the Reserve Bankwill raise interest rates again to tame rising prices, even as the growth slowsdown.