Markets Close Deep in Red

The markets have plunged for the second consecutive session due to rising fears of an interest rate hike by the central bank to fight the soaring inflation and nervousness ahead of the Q3 quarterly earnings. The Sensex ended at 19224, lower by 467 points and the Nifty ended at 5762, down 141 points, with realty, oil and banking heavyweights facing the brunt of selling fury. European stocks retreated for a second day as concern that the region’s debt crisis may spread overshadowed resurgence in merger activity. Asian shares and U.S. index futures fell. Banco Comercial Portugues SA slid 5.6 percent amid reports that Portugal may be forced to seek a bailout. Danisco A/S rallied 26 percent after DuPont Co. agreed to buy the world’s largest maker of food ingredients for $5.8 billion. Smith & Nephew Plc soared 11 percent after Sky News reported the U.K. maker of hip and knee replacements rejected a 7 billion-pound ($10.9 billion) takeover approach from Johnson & Johnson.