Derivatives Trading in India Sinks Most Since 2024 as Taxes Bite

Trading of Indian derivatives on the nation’s biggest bourse slumped last month by the most since curbs started in late 2024 as higher taxes aimed at cooling the options market took effect.

The average daily notional turnover sank 26% in April from March for futures and options on the National Stock Exchange of India Ltd. to 217 trillion rupees ($2.3 trillion). That was the biggest drop since December 2024, with the turnover reaching its lowest in more than a year. Trading of index contracts plunged 34% and 31%, respectively, after rising in recent months.