The Bombay Stock Exchange benchmark Sensex fell by 107 points in early trade today on selling by funds and retail investors, after inflation accelerated to a record high amid weak global Asian markets.

The 30-share index, which had lost 434.50 points in the previous trading session, shed 106.87 points to 14,136.86, pulled down by stocks of capital goods, banking and realty sectors.

Similarly, the National Stock Exchange's index Nifty dipped by 35.85 points to 4,248.00.

Marketmen said, surging inflation which climbed to 12.63 per cent for the week ended August 9 and weakening trends in other Asian markets mainly dampened trading sentiments here.

Jump in crude oil prices in the global markets, which again surged to 121 US dollar a barrel, was another bearish factor, they said.

Major stocks which dragged the Sensex down were BHEL, Larsen and Toubro, Reliance Infra, Rcom, HDFC Bank, State Bank of India, ICICI Bank, HDFC Ltd, Grasim Industries, DLF Ltd, ONGC, Satyam Computers, Infosys Technologies, Bharti Airtel, ACC, Mahindra and Mahindra and Tata Power.

However, Reliance Industries, Tata Steel and SAIL were in the positive zone and capped losses to some extent.