Foreign institutional investors (FIIs) extended their selling streak for the fourth consecutive session on April 3, offloading shares worth ₹2,806 crore in the cash market.

In contrast, domestic institutional investors (DIIs) remained net buyers with ₹221 crore worth of inflows, bringing the total net institutional outflow to ₹2,585 crore.

This heavy FII sell-off came amid global jitters following US President Donald Trump's announcement of a 10% reciprocal tariff on all US trading partners, including a 27% tariff on India. The new tariff structure triggered widespread concerns about a looming trade war, affecting global equities.

Benchmark indices in India closed lower, with the BSE Sensex slipping 322 points to settle at 76,295.36 and the NSE Nifty50 ending 82 points lower at 23,250.10.

IT stocks led the losses, with the Nifty IT index plunging 4.21%, dragged by heavyweights like TCS, HCL Tech, and Infosys. Auto, Oil & Gas, and Realty indices also remained under pressure.

However, pharma stocks provided some support, with the Nifty Pharma index rising over 2.25%. Banks, healthcare, FMCG, and consumer durables also ended in the green.

Small-cap stocks outperformed, with the Nifty Smallcap100 gaining 0.58%.