Key factors influencing the Indian stock market this week include Q4 results, economic data, Trump tariffs, RBI policy, and more.

Last week's dramatic decline in the Indian stock market broke a two-week winning streak. The global trade tensions brought on by Donald Trump's tariff hikes alarmed investors in both the domestic and international markets.

In the second week of the new fiscal year (FY26), investors will then keep an eye on important market triggers. Market direction will be determined in the second week of April by the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, the first set of March quarter profits for fiscal 2024-25 (Q3FY25), global tariff announcements, macroeconomic data, and global market cues. Weak global cues and resurgent worries about a trade war were the main factors pulling down domestic equity indices, the Sensex and Nifty 50. While the Sensex hovered around the week's low at 75,364.69, the Nifty 50 finished the week at 22,904.40. The NSE Nifty fell 614.8 points, or 2.61 percent, over the week, while the BSE Sensex plummeted 2,050.23 points, or 2.64 percent. Due to a widespread sell-off, the 30-share BSE index fell more than 900 points on Friday, plunging below the 76,000 mark. Hopes for a revival at home were further dashed by a sharp drop in the US stock market.

The US President's decision to put high retaliatory tariffs on important trading partners, including a 27% levy on certain Indian imports, set off the sell-off. This action sparked widespread risk aversion in emerging markets by rekindling concerns about a global trade war. Rising US Treasury yields and persistent inflationary worries further soured market mood and tempered expectations of an early rate decrease by the US Federal Reserve, according to Puneet Singhania, Director at Master Trust Group. Market watchers said that volatility stayed high and that the India VIX index increased sharply, indicating more prudence ahead of quarterly results and continuing election-related events.

Due to the US imposing higher-than-expected tariffs, the new fiscal year started off on a muted note. Due to retaliatory trade moves by other nations and mounting concerns about the US economy's prospects, sectors like IT and metals have underperformed in comparison to the overall market, according to Vinod Nair, Head of Research at Geojit Investments.

"Any countermeasures taken by international trading partners that could worsen geopolitical and economic instability will be watched by investors. The prolonged increase in gold and bond prices highlights a clear move toward safe-haven assets and reflects the cautious mindset," Nair continued.