A DESCRIPTIVE STUDY ON COMPARISONS OF STOCK PRICES PREVAILING IN THE CASH MARKET AND FUTURES MARKET WITH SPECIAL REFERENCE TO BANKS

In this current era of the 21st century, the economic scenario of our nation has taken altogether a 360 degree turn. Many companies such as Infosys, ITC, TATA, Reliance, etc have established themselves in the national as well as international market. Most of the Indians have come up with various start-ups. This has altogether contributed in the improvement of the economic conditions of our country. Through the growth of various industries and sectors, many people have started to invest their earnings in various companies of different industries, namely, the banking industry, the pharmaceutical industry, the textile industry, the steel industry, the automobile industry and many more, with an expectation to earn a high rate of return. The investors evaluate the best companies in which they can invest through NSE NIFTY and BSE SENSEX. Sensex is a figure which indicates the relative prices of shares and stocks of the companies listed under the Bombay Stock Exchange (BSE). Nifty is a figure which indicates the relative prices of shares and stocks of the companies listed under the National Stock Exchange (NSE). Derivatives are the products that derive their value on the basis of an underlying asset. The underlying asset can be a commodity, a currency or a security. Among the various types of derivatives, we are going to consider futures as the main highlight in our study. The main aim of our study will be to compare the share prices of various banks in the cash market and the futures market. The data that will be collected by us for our study will be secondary data and we will understand the changes in prices of the cash market and futures market through trends