A simple answer:
Your stock investments will continue to be taxed as is. Your future and option trades are always business income regardless of whether you’re hedging or speculating or employing arbitrage strategies.
Read this for more detail:
All your derivative trades are accounted for as business income. But they don’t necessarily attract a 30% tax. Your business income forms a part of your total income which has three other heads (Income from salaries, Income from house property and Other income). Your total income determines the tax slab you fall in. You can check the latest finance bill to check for the current tax slabs. These can change with every Union Budget Announcement.
Coming back to your query, both hedging and speculation profits/(losses) are treated as business income irrespective of whether or not you have an underlying portfolio which you’re hedging against. The underlying portfolio will continue to be taxed at the normal capital gain rates if you classify them as investments every year. Or, you can classify your portfolio as stock-in-trade and treat all gains/losses as business income.
There can be further elaboration based upon conditions and scenarios. You might want to consult an accountant.