Why is Cumminsind August Futures trading at a 6% discount?

CUMMINSIND has declared a dividend of Rs. 10 ex 31st July 2019. A discount of Rs. 10 is understandable but this stock is trading at a discount of Rs. 40+ to the cash market as well as July Futures. Can someone please explain why?

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Hi Ashwin, could you get an answer to the above question?

Hello Vansh,

No, I couldn’t. I believe it had something to do with the dividend. Today, on the the ex-date, both the cash and futures seems to be in synch. August futures is trading at roughly 0.4% discount to the spot which is the case in a lot of stocks this month.