Sensex closes lower by 1.06% as US bailout doubts linger

Sensex closes lower by 1.06% as US bailout doubts linger

Mumbai: Indian shares fell 1.06% in cautious trade on Thursday as investors unwound positions at the expiry of the monthly futures contract and ahead of the release of inflation data, dealers said.

The BSE benchmark 30-share Sensex index fell 145.34 points to 13,547.18.

The markets were rangebound due to uncertainty over a proposed $700 billion Wall Street rescue plan, which is facing resistance from US lawmakers.

US investment guru Warren Buffett’s Berkshire Hathaway announced on Wednesday it was putting five billion dollars into troubled US bank Goldman Sachs.

“The markets were choppy due at the expiry of the futures contract. Rate- sensitive sectors were actively traded ahead of inflation data," said Alex Mathew of brokerage Geojit financial services.

Official inflation data was expected later Thursday.

Annual inflation has been running at 12.14%, according to the Wholesale Price Index, India’s most watched cost-of-living monitor.

The figure is still far above the central bank’s target of 7% for the fiscal year to March 31, 2009.