Sensex dips 344 pts

Mumbai, Nov. 26 -- Rising US dollar against Euro, bearish trend in Chinese and European markets and negative Tata Steel (TATASTL.BO : 542 +8.55) results pushed Sensex (^BSESN : 16028.8 -13.38), the benchmark index of Bombay Stock Exchange (BSE), to lose 344 points.

While debt problems in Dubai raised fresh concerns about the global financial system and send banks sliding in Europe, speculation about Chinese banks raising capital overseas led to selling pressure. Investors unwound positions on the last day of monthly derivatives taking cues from lower world markets also led to loss in banks.

Sensex lost two per cent from its previous close of 17,198 to end at 16,854 on Thursday. S&P CNX Nifty (^NSEI : 4776.9 -15.75) of the National Stock Exchange fell 102.6 points or two per cent to 5005 from 5108 on Wednesday.

"The market fell as immediate reaction to bearish Chinese market, which was down by 3 per cent. Europe had also opened lower," said Dinesh Thakkar, CMD, Angel Trading.

The market had to contend with selling pressure practically through out the day. "The results of Tata Steel, discomfort due to strengthening of US dollar against Euro and speculation that Chinese banks intend to raise capital overseas led to selling pressure gaining momentum," said Avinash Gupta, assistant vice-president Research Equity, Bonanza Portfolio. The cement stocks, particularly those with plants in South (India Cements), were in demand following the news of hike in cement prices in Andhra. Two-wheeler stocks also ended in positive. Hero Honda and Bajaj Auto (BAJAJAUTO.NS : 2101.05 0) also recorded gains.