Have buying and selling volumes dropped after STT hike on F&O? This is what information exhibits
Ashish Nanda of Kotak Securities took to X to share information exhibiting how volumes modified after the STT hike took impact from April 1, 2026 onwards. “March was an distinctive month, however for those who examine April with another month, volumes don’t look that dangerous,” he wrote.
In accordance with the info which Nanda sourced from the inventory exchanges BSE and NSEcumulative volumes for futures and choices trades stood at Rs 2.55 lakh crore in April 2026, and Rs 2.56 lakh crore in Might this 12 months. That is considerably decrease than the F&O trades price Rs 3.10 lakh crore executed in March this 12 months, however roughly at par with the volumes seen in earlier months.
“March was an distinctive month, however for those who examine April with another month, volumes don’t look that dangerous,” Nanda wrote. “Some softness might be seen in index futures and inventory futures although. April index futures volumes had been decrease than 9 out of 12 earlier months. Inventory futures volumes had been decrease than 6 of earlier 12 months,” he added.
The analyst famous that choices volumes, nevertheless, are usually not exhibiting any signal of softness after the STT hike. “Volumes are greater than 9 out of earlier 12 months each for index and inventory choices. Might is trying sturdy too,” he stated.
— Ashish1Nanda (@Ashish1Nanda)
After presenting the Union Finances in February this 12 months, Union Finance Minister Nirmala Sitharaman stated that the federal government couldn’t stay silent as speculative ‘satta’ in derivatives inflicts heavy losses on small retail buyers.
Additionally Learn | F&O satta is very dangerous… how can the federal government keep quiet: Nirmala Sitharaman on STT hike
“We’re touching solely the futures and choices section. Nobody has elevated transaction prices elsewhere. Hypothesis, what we name ‘satta’ in Hindi, is very dangerous, and many individuals with restricted funds face heavy losses. The nominal enhance in STT is aimed purely at deterring extreme hypothesis. We respect market exercise, however the authorities can not ignore the losses confronted by small buyers. This tax is just one aspect to help that coverage. How the remainder of the market is regulated is as much as the market regulator,” Sitharaman stated in an announcement to the press after her Finances speech.
Saying the modifications in Parliament, the finance minister stated, “I suggest to lift the STT on futures to 0.05 % from the current 0.02 %. STT on choices premium and train of choices are each proposed to be raised to 0.15 % from the current price of 0.1 % and 0.125 %, respectively.”
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