Mumbai:  Snapping a two-day rising streak, the BSE benchmark index Sensex fell by nearly 36 points in early trade on Thursday, as funds and retail investors booked profits at prevailing levels amid fears of a rise in inflation.

In addition, weakening trend on the other Asian bourses also dampened the trading sentiments.

The 30-share index, which had gained 212.50 points in the past two sessions, fell by 35.93 points, or 0.21 percent, to 16,844.58 with stocks of banking, power and capital goods sectors succumbing to profit-booking.

Similarly, the wide-based National Stock Exchange index Nifty declined by 16.35 points, or 0.31 percent, to 5,105.10.

Brokers said besides profit-booking by speculators after recent gains, fears of a rise in inflation, to be released later on Thursday also triggered selling by participants.

Further, weakening trend on the other Asian markets following overnight losses at the US markets on weak economic data and Europe's debt woes, too, had its impact, they said.

In the Asian region, Hong Kong's Hang Seng index fell by 0.66 percent, while Japan's Nikkei Index declined by 0.69 percent in the morning trade on Thursday. The US Dow Jones Industrial Average ended 0.62 per cent lower in Wednesday’s trade.


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