April marked a significant divergence in trading activity in India, with the cash market turnover rising by 7% to reach ₹1.44 trillion, bolstered by a robust recovery in equities. This surge follows a 6.9% gain in the Sensex and a 7.5% increase in the Nifty, their best monthly performance since December 2023. The rise in cash volumes is attributed to improved market conditions, encouraging more investors to participate after a steep decline in March. Conversely, derivatives turnover fell by 6% following an increase in the securities transaction tax (STT), which was raised from 0.02% to 0.05% for futures and from 0.1% to 0.15% for options. This tax hike has particularly impacted algorithmic traders and contributed to a decrease in liquidity. The Bombay Stock Exchange (BSE) has gained market share, achieving over 50% in notional derivatives trading, compared to the National Stock Exchange of India (NSE), which reported an average daily turnover of ₹217 trillion. However, the overall decline in derivatives trading is evident, with the NSE's active client base shrinking by 3.5 million to 45.2 million in FY26, indicating reduced participation from smaller traders. Analysts suggest that while cash markets may remain strong if the equity rally continues, a revival in derivatives trading will depend on lower volatility and a renewed appetite for risk among retail investors.