BENGALURU: Indian shares fell for a second day on Thursday, led by losses in financial stocks, as fears of a global recession and worsening US-China trade relations hurt investor sentiment.

The broader NSE index closed down 0.89% at 10,948.30, while the benchmark BSE index ended 1.02% lower at 37,068.93.

The Nifty's state-run bank index closed down 2.7% with all 10 constituents in the red. State Bank of India  was the top loser on the indexes, finishing the session with a more than 3% fall. Shares of Jammu and Kashmir Bank Ltd settled 5.75% lower.

Reliance Industries Ltd and ITC Ltd were among the top non-financial losers on the indexes. Both stocks shed over 2% on Thursday.

Meanwhile, the blue-chip Pharam index settled 2.25% higher, with shares of Sun Pharmaceutical Industries Ltd closing at its highest in over two weeks.