Conflict between the Trade and Turnover-Stock Futures Vs. National Market

The National Stock Exchange (NSE) of India was ranked the first in terms of trading of individual stock futures in the year 2007. The financial derivatives like stock futures have always been accused of causing instability in the spot market. This paper investigates the effects of individual stock futures in the derivatives market and the common stock market in the NSE. In this paper the researcher uses the daily data of the top ten individual stocks on the basis of their weightage in the capital market. The weightage of stock are based on their market capitalization. This study has found the return of this ten selected individual stocks from the stock futures market and the stock market in NSE. This study shows the difference of return earned from these two markets for same individual stocks in NSE for the period of April 2014 to March 2015.