The Indian stock market witnessed strong buying interest in intraday trade on Monday, 4 May, which drove the benchmarks- the Sensex and the Nifty 50- higher by over 1% each. According to ET Now, Sensex opened at 77,257.27, gaining 651.30 points (0.85%) to trade at 77,564.80, while Nifty 50 opened at 24,063.55, up by 66 points (0.28%). The sharp gains added more than ₹5.4 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to nearly ₹469 lakh crore. The benchmark indices were buoyed by strong global cues and positive sentiment ahead of state election results, even as crude oil prices remained elevated and foreign institutional investors continued to sell. The Nifty Bank index hovered near the 54,800–55,000 zone, reflecting continued pressure on banking and financial stocks. As per ET Now, the Sensex moved between a high of 77,574.00 and a low of 77,229.89 during the session, while India VIX, which measures volatility in the markets, dropped more than 4.5% to 17.65 on Monday morning, indicating broad-based market optimism.
BSE is steadily gaining ground in options trading, with its market share rising from about 21% in April 2025 to 34% in April 2026 on an average daily premium turnover basis. According to CNBC TV18, absolute volumes have more than doubled, moving from roughly ₹15,500 crore to over ₹33,000 crore during this period. The average daily notional turnover (ADT) in the Futures & Options (F&O) segment of BSE jumped nearly 20% month-on-month in April to ₹269 lakh crore, while NSE's notional ADT fell about 26% to ₹216 lakh crore. In the options segment, NSE's total premium turnover declined 28% month-on-month to ₹12.9 lakh crore, while BSE reported 6% increase to ₹6.63 lakh crore. BSE's share in notional F&O turnover rose to 55% in April from 44% in March, while NSE's share declined to 45% from 56%. The shift was partially due to lower charges levied by BSE - in futures contracts, NSE charges ₹1.83 per ₹1 lakh, while BSE levies no fee, and in options, NSE charges ₹36 per ₹1 lakh compared with BSE's ₹5 per ₹1 lakh on stock options. As per The Hindu BusinessLine, Feroze Azeez, Joint CEO of Anand Rathi Wealth, noted that better liquidity from market-making and a shift in trader behaviour after changes in weekly expiry rules have helped BSE cross 50% market share.
Bank Nifty has declined approximately 8% year-to-date in 2026, mirroring the broader market correction and creating significant opportunities for selective investors. According to Mint, stocks like HDFC Bank, IDFC First Bank, and Kotak Mahindra Bank have lost over 10% this year so far, with the banking sector facing additional headwinds from regulatory changes. The Reserve Bank of India (RBI) has issued the "expected credit loss (ECL)" framework mandate, with 1 April 2027 as the deadline. Under the new guidelines, financial assets will be classified in three stages, depending on whether there has been a significant rise in credit risk since initial recognition. The banking sector's correction reflects mixed earnings performance and weak market sentiment due to geopolitical factors, with experts noting that the outlook for the sector has turned hazy amid persisting uncertainty around the US-Iran conflict and rising concerns that the full impact of elevated crude oil prices on growth-inflation dynamics could be significantly negative.
Hindustan Unilever (HUL) and Maruti Suzuki shares jumped more than 4% each to emerge as the top gainers on Sensex, with HUL gaining 4.96% and Maruti Suzuki adding 4.6%. As reported by Times of India, L&T, Adani Ports, Asian Paints and M&M followed, rising more than 2% each. Adani Ports SEZ emerged as a standout performer, surging 11.1% to ₹1,702, while Adani Enterprises gained 8.6% to ₹2,503.2 and Adani Green Energy rose 6.6% to ₹1,287.1. Other notable gainers included Infosys at ₹1,195, adding 26.2%, IRCTC at ₹555.1, surging 44.1%, and PayTM at ₹1,120.4, gaining 25.3%. According to ET Now, Bajaj Auto Ltd led the gainers with a 2.50% rise to ₹10,244, while Interglobe Aviation gained 1.25% to ₹4,349 and Mahindra & Mahindra Ltd featured among top gainers at ₹3,131.50, gaining 1.10%. Among Nifty stocks, Hindustan Unilever and Tata Consumer Products were among the major gainers, while Kotak Mahindra Bank, Dr Reddy's Laboratories, ONGC, Eternal and Adani Enterprises were among the laggards. Around 2,246 stocks advanced on the NSE, while 690 declined and 87 remained unchanged, indicating broad-based market participation.
Since April, STT on futures was increased to 0.05% from 0.01%, while STT on options premium and options exercise was raised to 0.15% from the previous 0.10% and 0.125% respectively. According to The Hindu BusinessLine, Anand James, Chief Market Strategist at Geojit Investments, noted that the impact of increase in STT on F&O has been more on NSE in April, as the number of index option contracts traded in BSE rose. Hariprasad K, Research Analyst and Founder of LIvelong Wealth, observed that for retail participants, particularly high-frequency and low-margin traders, the math simply does not work after the STT hike. He noted that it is not just a slowdown, but a filtration with weaker hands gradually stepping out. Despite the shift in trading volumes, NSE continues to dominate the overall options market, holding a 66% share in options premium turnover compared with BSE's 34%. The market regulator Sebi's decision to limit exchanges to have only one weekly expiry has worked in favour of BSE to gain trading interest in the F&O segment.
