New Delhi [India], April 7 (ANI): Indian stocks witnessed a bloodbath as the new week kicked off, triggered by the Trump reciprocal tariffs. These tariffs have set off a sell-off in equities globally, and India was no exception.

In the early trade, the Sensex dropped 5 per cent lower at one point, but as the day progressed, it pared some of the losses and closed 3 per cent lower. The Sensex closed at 73,137.90 points, down 2,226 points. Similarly, the Nifty also slipped 3 per cent to close at 22,161.60 points.

'The market tumbled as the carnage over high US tariffs and the retaliation by other countries may kickstart a trade war,' said Vinod Nair, Head of Research, Geojit Investments Limited.

'Sectors like IT and metals have underperformed relative to the broader market due to the risk of high inflation with slower growth that may result in a potential recession in the US,' Nair added.

'Though the overall impact on India may be limited when compared with other countries, investors are advised to play cautiously during this fray. Focus will be on pure-play domestic themes, where the rebound is likely to be fair when the dust settles,' Nair further said.

Trump's reciprocal tariff announcement last week has been sending tremors across asset classes globally, including here in India. Equity markets worldwide slumped, particularly after Trump's sweeping trade tariffs, which stoked fears of an all-out trade war and a global economic recession.

Indian stock indices closed the week that passed by on a sour note, weighed down by the Trump reciprocal tariffs and the uncertainties surrounding them. The Sensex slumped about 2,100 points during the week.

Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.

Going ahead, the market focus will gradually shift towards the RBI monetary policy and the upcoming corporate earnings season. (ANI)