INDIA STOCKS-Indian shares join global selloff as US tariffs trigger recession fears

Updates for morning trade

By Vivek Kumar M and Bharath Rajeswaran

April 4 (Reuters) - Indian shares joined the global sell-off on Friday on fears that the U.S. reciprocal tariffs would spark a global recession, after having largely weathered the storm in the previous session since the duties on the country were lower than on its peers.

The Nifty 50 .NSEI fell 1.17% to 22,977.85 points as of 10:51 a.m. IST, while the BSE Sensex .BSESN was down 0.97% to 75,552. They dropped a relatively mild 0.4% on Thursday.

Asian shares <.MIAPJ0000PUS> fell 0.8% on the day, adding to their 0.7% tumble on Thursday after Trump set baseline tariffs of 10% on all imports and higher rates on several trading partners. MKTS/GLOB

India was hit with a 27% retaliatory levy, lower than China's 34%, Vietnam's 46% and Bangladesh's 37%.

"While India's tariff puts it in a favourable position in trade compared to peers, the overall global trade uncertainty and growth concerns have increased and we feel markets will remain volatile in the near term," said Umesh Gupta, fund manager and head of PMS equity at Ambit Global Private Client.

Even the broader mid-cap .NIFMDCP100 and small-cap .NIFSMCP100 indexes tumbled 3% and 3.5%, respectively, after minimal impact in the previous session.

Drugmakers .NIPHARM sank 6% after Trump reportedly threatened tariffs on pharma products at "levels never seen before". The sector more than erased its 2.3% gains on Thursday after the sector was exempted from tariffs.

IT companies .NIFTYIT, which get a substantial chunk of revenue from the U.S., fell 3%, adding to their 4.2% slide in the previous session on fears of lower client spending as the tariffs sparked recession fears.

Those fears also dragged down crude prices, which pulled the energy sector .NIFOILGAS down 3.3%. Energy-heavy Reliance Industries RELI.NS dropped 3.5% and was among the biggest drags on the Nifty 50.

On the flip side, HDFC Bank HDBK.NS jumped 2% after reporting an encouraging update for the previous quarter. It helped keep the financial sector afloat.

(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Janane Venkatraman and Sonia Cheema)

((VivekKumar.M@thomsonreuters.com;))