Global cues, RBI pull Sensex down 108 points

The 30-share Bombay Stock Exchange (BSE) sensitive index— Sensex on Monday fell 108 points or 0.6% to 16,713 on negative global cues as the Asian and European markets plunged on renewed concerns that the United States may slip back into recession and Europe faced a series of risks that could re-ignite its debt crisis.

Investors are also worried over the Reserve Bank of India's high interest rate regime to tame rising inflation, brokers said.

The National Stock Exchange index Nifty also ended lower at 5017, down 23 points or 0.5%. The rupee also weakened against the US dollar. It ended the day at Rs45.9, down 19 paise or 0.4%. It had gained 0.6% on Friday to close at Rs45.8.

Oil and gas, information technology and telecom stocks were among major losers. Infosys and Wipro, which get the bulk of their revenue from the US market, fell 2.3% and 3.8% respectively after Goldman Sachs cut its price target on the stocks.

Gold futures hit record high

Gold futures on Monday touched a record Rs28,350 per 10 grams, before closing at Rs28,192 for the October future contract on the Multi Commodity Exchange (MCX), an increase of 1.5% from Rs27,818 per 10 grams for the October future contract. The price of the yellow metal increased by Rs374 per 10 grams due to global cues.

Global cues, especially concern about the US economy slipping into a recession contributed to the increase.