Indices decline for 2nd day on growing rate hike fears, weak global markets

Benchmark BSE Sensex and Nifty ended lower on Wednesday after losses in rate-sensitive banking and auto shares amid weak global market trends as higher interest rate and recession fears hit investor sentiment.

Extending losses for a second straight day, the 30-share Sensex declined by 168.08 points or 0.28 per cent to settle at 59,028.91. During the day, it fell 474.1 points or 0.80 per cent to 58,722.89.

The broader NSE Nifty dipped 31.20 points or 0.18 per cent to 17,624.40.

Analysts said growing worries over higher interest rates after positive US data hit the market sentiment.

"The latest economic figures indicate that the US central bank would continue to raise interest rates," Vinod Nair, Head of Research at Geojit Financial Services said.

From the Sensex pack, IndusInd Bank fell the most by 1.69 per cent. Mahindra & Mahindra declined 1.32 per cent, Maruti by 1.15 per cent, Bharti Airtel by 1.08 per cent.

State Bank of India fell 0.95 per cent while Tata Steel, ICICI Bank .