Cash Market Turnover Hits 21-Month High In April; Derivatives Activity Declines

Turnover in the cash market reached a 21-month high of ₹1.44 lakh crore in April, driven by strong performance on equity markets, according to data provided by NSE and BSE. This represents a 6.3% increase from the previous month, when average daily turnover amounted to ₹1.35 lakh crore.

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This trend is associated with greater liquidity in the cash market as indices climbed up from their troughs in late March. Data covering the first four months of 2026 shows that the average turnover in the cash market was around ₹1.33 lakh crore, up from a monthly average of ₹1.1 lakh crore in 2025.

Derivatives Segment Sees Sharp Decline

On the contrary, the performance of the derivatives section became negative in April. The combined average daily trade volumes in derivatives traded in NSE and BSE reduced by 26%, from ₹292 lakh crore to ₹215 lakh crore.

The difference in the trading activities of the two sections reveals the change in the pattern of trading in the period considered.

Market Performance And Participation Trends

The Indian equity markets saw gains in the month of April, which helped drive cash market volumes. Sensex and Nifty, the benchmarks, gained about 8% each in April. Broader markets performed well as well; the BSE MidCap 150 gained 13.5%, while the BSE SmallCap 250 climbed more than 17%.

This was accompanied by stronger investment flows. Analysis showed that the foreign institutional investment activity in the cash markets saw improvement in outflow trends in April relative to prior months.

Valuation Outlook

Valuations were also muted during the bull run. The Sensex and Nifty were quoting around 18.5x one-year forward price to earnings multiples, which were below their long-term historical average levels of 19.8x and 19x, respectively.

However, valuations of broader markets were relatively higher. The BSE MidCap 150 traded at 26.84x, while the BSE SmallCap 250 stood at 24.14x, both above their historical averages.

Key Drivers Behind Turnover Movement

The increase in cash market volumes was coincident with the improvement in sentiment for equities in April. The increase in stock prices from their March lows had contributed to increased trading volumes, while participation rates were rising across all investor types.

On the other hand, there was a sharp decline in derivatives activity, suggesting that there were lower volumes of futures and options trading than in March.

In general, the exchange reports revealed a marked difference in cash and derivatives trading activities in April.