Stock market today: Indian markets kicked off FY26 on a somber note, tracking the sharp sell-off in U.S. markets overnight after U.S. President Donald Trump on Sunday, said tariffs would essentially cover all countries, stoking worries a global trade war could lead to a recession.

Investors had been hoping for a more targeted approach in implementing the levies. Trump is set to receive tariff recommendations on Tuesday and is expected to announce the initial levels on Wednesday.

These levies are coming at a time when U.S. consumer and business confidence are weakening, as concerns grow that higher duties will drive up domestic prices and potentially slow down economic activity. The recent inflation data has reinforced these concerns, as the Federal Reserve’s key inflation measure rose more than expected in February, while consumer spending increased at a slower-than-projected pace.

The rising trade tensions and declining consumer confidence are also prompting analysts to cut their projections for the American economy and increase recession odds. Global brokerage firm Goldman Sachs recently raised the probability of a U.S. recession this year to 35%, while also lowering its U.S. GDP growth forecast and year-end target for the S&P 500, making it the most bearish among major firms so far.

Stock Market Today: 10 Key Highlights

Here are 10 key highlights of the Indian stock market today:

Nifty 50, Sensex extend fall to the second day

After ending the last trade of FY25 on a weak note, both frontline indices witnessed another round of selling pressure on the first trading day of FY26. The Nifty 50 closed Tuesday’s session, April 1, with a 1.50% decline, settling at 23,165, while the Sensex tanked 1.8% to end at 76,024 points.

Today marked the biggest intraday drop for both indices since February 28, when they tumbled nearly 2%. The sharp decline also pulled both Nifty 50 and Sensex back to their March 21 levels.

HDFC Bank, Infosys, and three other stocks contribute 56% to Nifty 50’s fall

The sharp drop in shares of HDFC Bank, Infosys, Reliance Industries, HCL Tech, and Larsen & Toubro collectively accounted for 222 points, or 63%, of the Nifty 50’s 353-point decline in today’s session.

HDFC Bank emerged as the biggest drag on the index, pulling it down by 98 points, followed by ICICI Bank and Infosys, which contributed 47 and 32 points to the decline, respectively.

Nifty Realty: Worst sectoral performer

Among the 13 major sectoral indices, Nifty Realty was the worst performer, losing 3.11% of its value. It was followed by Nifty Consumer Durables, Nifty IT, Nifty Pharma, and Nifty FMCG, all of which ended in the red with losses ranging between 0.91% and 2.50%.

On the winning side, Nifty Media managed to close with a gain of 2.24%.

Broader markets outperform

Despite a sharp sell-off in the frontline indices, both mid-cap and small-cap stocks saw relatively smaller losses compared to large-cap stocks. The Nifty Midcap 100 ended 0.86% lower at 51,229 points, while the Nifty Smallcap 100 index dropped 0.70%, closing at 15,982 points.