Stock market today: Indian stock market slipped into the red again after a one-day relief rally, as investor anxiety returned on concerns that U.S. negotiations with trading partners on reciprocal tariffs would not result in any positive outcomes.

The RBI repo rate cut for the second consecutive time didn’t lift investor sentiment, as heightened global trade tensions overshadowed the domestic policy support.

U.S. President Donald Trump, on Tuesday, hit China with an additional 54% tariff, taking the total tariff rate on goods from the world’s second-largest economy to 104%. The new tariffs on Beijing, along with higher duties on other countries including India, took effect today.

The Nifty 50 ended the session down 0.61%, closing at 22,399 points, while the Sensex also declined by 0.48%, ending at 73,871.

The broader markets also slipped into the red, with the Nifty Midcap 100 index falling 0.61% to close at 49,582 points, while the Nifty Smallcap 100 ended with even higher loss of 0.84% 15,256 points.

Heightened trade tensions and retaliatory measures are also weighing on target price cuts across several sectors. Information technology has been hit the hardest, as the industry is heavily dependent on the U.S. economy for revenue compared to other domestic sectors.

Global brokerage firm Jefferies, in its latest note, cut earnings per share (EPS) estimates for Indian IT companies by 2–14%. Consequently, the firm lowered price targets on several Indian IT stocks, with reductions ranging from 5% to 35%, citing rising uncertainty in the sector.

This bearish outlook was echoed by domestic brokerage firm Kotak Institutional Equities, which recently said that shares of Indian IT companies could fall up to 35% if a recession hits the U.S. economy, making the Nifty IT index one of the biggest casualties in the ongoing tariff-led market meltdown.