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Basis

Basis is the difference between an NSE futures price and the underlying cash spot, such as Nifty or a stock future versus cash.

Indian traders read Nifty or stock-futures basis versus the cash market for rich or cheap futures pricing.

Cost of carry, expected dividends, STT, and margins influence cash-futures arbitrage around that basis.

Unusual basis widening can attract cash-futures arbitrage interest into expiry.

Near expiry on NSE, basis typically converges as futures and spot align.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.