Sensex tanks 344 pts on heavy selling

The Bombay Stock Exchange (^BSESN : 15991.35 -50.83) benchmark Sensex on Thursday sharply declined by 344 points on heavy selling by funds on expiry of current month contracts in the derivatives segment amid weak global cues.

The 30-share index plunged by 344.02 points to close at 16,854.93 points, recording the biggest fall after November 3.

The key index moved between 17,202.51 points and 16,808.87 points during the day as investors offloaded pending positions on expiry of the November month contract in the derivatives segment.

The wide-based National Stock Exchange (^NSEI : 4775.3 -17.35) index Nifty fell by 102.60 points to 5,005.55 points, after touching the day's low of 4,986.05 points.

Selling pressure was more confined to banking, oil and gas, consumer durables, realty and IT stocks.

Reliance Industries (RELIANCE.NS : 990.5 -2.75), the heaviest on the Sensex, fell 3.6 per cent after the stock was converted into ex-bonus. IT major Infosys (INFOSYS.BO : 2466.1 -4.8) fell by 1.92 per cent, while largest private lender ICICI Bank (ICICIBANK.NS : 809.2 -3.2) declined 3.74 per cent. The three stocks carry more than 27 per cent weightage on the benchmark.

In the 30-BSE index stocks, 26 scrips closed with losses.

A weakening trend in Asian markets and lower opening in the European markets also weighed on investors sentiment.

Hong Kong's Hang Seng index declined 1.78 per cent after heavy fall in Chinese shares, while Singapore fell by 1.10 per cent. The Japanese Nikkei dipped 0.62 per cent to close at four month low after yen's sharp rise against dollar.