Sensex up 6.9%, cash market ADTV hits 2-year high; derivatives fall on STT hike
Synopsis
India's April market data reveals a tale of two segments: a powerful equity rebound pushed cash ADTV to a near two-year high, while the STT hike from 1 April hammered derivatives volumes by 18% from January levels. Most strikingly, BSE crossed 50% notional derivatives market share for the first time — overtaking NSE in a shrinking but restructuring segment.
Key Takeaways
Sensex gained 6.9% and Nifty rose 7.5% in April — best monthly performance since December 2023 .
Cash market ADTV hit a near two-year high of ₹1.44 trillion , up 7% month-on-month.
Nifty Smallcap 100 surged 18.4% — highest monthly gain since May 2014 .
Derivatives ADTV fell to ₹486 trillion , down 18% from January's ₹592 trillion , after STT on futures rose to 0.05% and options to 0.15% .
BSE crossed 50% notional derivatives market share for the first time, with ADTV of ₹269 trillion versus NSE's ₹217 trillion .
India's stock markets delivered a sharply contrasting performance in April, with a powerful equity rebound driving cash market turnover up 7% to a near two-year high, even as a steep hike in the securities transaction tax (STT) from 1 April dragged derivatives volumes sharply lower. The divergence underscores how regulatory and fiscal changes are reshaping the structure of Indian market activity.
Equity Rally Drives Cash Market Surge
Benchmark indices staged their strongest monthly recovery in over a year. The Sensex climbed 6.9% and the Nifty advanced 7.5% in April — their best monthly performance since December 2023. This came on the heels of a brutal March, when both indices plunged more than 11%, their worst fall since the pandemic-driven sell-off of March 2020.
The rebound lifted activity in the cash segment, where the average daily turnover (ADTV) touched a near two-year high of ₹1.44 trillion. Gains were even more pronounced in the broader market: the Nifty Midcap 100 surged 13.6% — its best performance since November 2020 — while the Nifty Smallcap 100 jumped 18.4%, the highest monthly gain since May 2014.
STT Hike Weighs on Derivatives Volumes
Derivatives trading told a different story. The STT on futures was raised to 0.05% from 0.02%, while the options tax was increased to 0.15% from 0.1%, effective 1 April. The combined effect of the higher tax burden, elevated market volatility, and tighter regulatory norms — including a restriction limiting weekly expiries to two days — contributed to a 6% drop in derivatives turnover.
The average daily turnover (ADTV) in the derivatives segment stood at ₹486 trillion, nearly 18% lower than the January level of ₹592 trillion. Market participants attributed the slowdown to this combination of fiscal, volatility, and regulatory headwinds acting simultaneously.
BSE Crosses 50% Notional Market Share for First Time
Despite the overall decline in derivatives activity, the Bombay Stock Exchange (BSE) made a landmark gain in the segment. The exchange's notional market share crossed the 50% mark for the first time, with its derivatives ADTV reaching ₹269 trillion — surpassing the National Stock Exchange of India (NSE), which recorded ₹217 trillion. In terms of premium turnover, however, BSE held around 31% market share, indicating that NSE retains dominance in higher-value options activity.
What This Means for Markets Ahead
The April data reflects a market in transition. The STT hike and regulatory tightening appear to be structurally reducing speculative derivatives volumes — a stated policy objective — while the equity rebound has revived retail and institutional participation in the cash segment. Whether the derivatives compression is temporary or signals a lasting shift in trading behaviour will depend on how market volatility and regulatory conditions evolve in the months ahead.
Point of View
It is working. But the 18% compression from January levels also squeezes market makers and hedgers, not just retail speculators, raising questions about unintended collateral damage. Meanwhile, BSE crossing 50% notional derivatives share is a structural inflection point that mainstream coverage has underplayed — it reflects years of deliberate exchange strategy, not just a tax-driven NSE retreat. The real question is whether BSE can convert notional dominance into premium turnover leadership, where NSE still holds the upper hand.
NationPress
1 May 2026
Frequently Asked Questions
Why did derivatives turnover fall in April 2024?
Derivatives turnover fell 6% in April after the securities transaction tax (STT) on futures was raised to 0.05% from 0.02%, and on options to 0.15% from 0.1%, effective 1 April. Elevated market volatility and regulatory measures — including limiting weekly expiries to two days — compounded the impact.
How much did the Sensex and Nifty gain in April 2024?
The Sensex rose 6.9% and the Nifty advanced 7.5% in April 2024, their best monthly performance since December 2023. The rally followed an 11%-plus decline in March, the worst monthly fall since the pandemic sell-off of March 2020.
What is the significance of BSE crossing 50% notional derivatives market share?
BSE's notional derivatives ADTV reached ₹269 trillion in April, surpassing NSE's ₹217 trillion and crossing the 50% notional market share mark for the first time. However, in premium turnover terms, BSE held around 31%, meaning NSE retains dominance in higher-value options activity.
What was the cash market ADTV in April 2024?
The average daily turnover (ADTV) in the cash segment touched a near two-year high of ₹1.44 trillion in April 2024, supported by the sharp rebound in equities across large-cap, mid-cap, and small-cap indices.
How did mid-cap and small-cap stocks perform in April 2024?
The Nifty Midcap 100 rose 13.6% in April — its best performance since November 2020 — while the Nifty Smallcap 100 jumped 18.4%, the highest monthly gain since May 2014, significantly outpacing the large-cap benchmark indices.
