Mumbai, Apr 7 : Stock market benchmark indices Sensex and Nifty cracked over 5 per cent on Monday, in tandem with massive sell-offs across the board, as US President Donald Trump's tariff hikes and retaliation from China fuelled investors' jitters amid fears that a full-blown trade war will impact economic growth across the globe. The 30-share BSE benchmark Sensex crashed 3,939.68 points or 5.22 per cent to 71,425.01 in early trade. The NSE Nifty tumbled 1,160.8 points or 5.06 per cent to 21,743.65. During the afternoon trade, the BSE benchmark quoted 3,205.31 points or 4.25 per cent lower at 72,159.38, and the Nifty traded with a cut of 1,038.95 points or 4.54 per cent at 21,865.50.

All the Sensex firms were trading in the negative territory. Tata Steel dropped over 9 per cent, followed by Tata Motors which cracked more than 8 per cent. Larsen & Toubro, HCL Technologies, Kotak Mahindra Bank, Infosys, ICICI Bank, Axis Bank, Reliance Industries and Adani Ports were the other big laggards. In Asian markets, Hong Kong's Hang Seng index tanked more than 12 per cent, Tokyo's Nikkei 225 plunged nearly 8 per cent, Shanghai SSE Composite index dropped about 8 per cent and South Korea's Kospi sank over 5 per cent.  US markets ended sharply lower on Friday. The S&P 500 plummeted 5.97 per cent, Nasdaq composite slumped 5.82 per cent and the Dow tumbled 5.50 per cent on Friday.

Both China and Japan index declined by 10 per cent and 8 per cent, respectively. This escalates the stakes in the ongoing trade war and raises concerns about a potential global recession that could affect everyone. On Friday, the US S&P 500 dropped by 6 per cent, and the Dow Jones fell more than 2,000 points, marking its worst week since the COVID-19 crisis. This came after China announced it would impose reciprocal 34 per  cent tariffs on all US imports starting April 10," Vikas Jain, Head of Research at Reliance Securities, said.

The sharp increase in tariffs by both the US and China could lead to higher inflation, slower global growth, and intensify trade tensions, he added. The BSE smallcap gauge cracked 5.78 per cent, and the midcap index tanked 4.52 per cent. All the BSE sectoral indices were trading in negative territory. Metal tumbled over 7 per cent, commodities dropped 5.84 per cent, industrials (5.73 per cent), IT (5.01 per cent), consumer discretionary (4.94 per cent), BSE Focused IT (4.77 per cent) and teck (4.37 per cent).

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,483.98 crore on Friday, according to exchange data. Global oil benchmark Brent crude dropped 2.94 per cent to USD 63.51 a barrel. On Friday, the Sensex tumbled 930.67 points or 1.22 per cent to settle at 75,364.69. The Nifty declined 345.65 points or 1.49 per cent to close at 22,904.45. Last week, the Sensex tanked 2,050.23 points or 2.64 per cent, while the NSE Nifty declined 614.8 points or 2.61 per cent. 

/Agencies