Large difference between stock and its future

#1
Hi all,
I just noticed that some stock prices are higher than its future contract prices.

for example, Heromotoco is trading at 1805 and the jan futures is trading at 1765. Why is this? there is so much difference..(125 *40 = 6000 Rs)

can anyone explain?

thanks
Jaya
 

sanjosedesi

Well-Known Member
#2
I just noticed that some stock prices are higher than its future contract prices.

for example, Heromotoco is trading at 1805 and the jan futures is trading at 1765. Why is this? there is so much difference..(125 *40 = 6000 Rs)
What could be the logical reason for a difference between a SPOT and FUTURE price? People are expecting the stock to move down. This could be in many cases because of dividend, and in other cases because of pessimism about the stock.