This study examines the impact of futures trading on efficiency and volatility of Indian stock market. To evaluate the impact of futures trading on efficiency and volatility of stock market, whole period is divided into two parts: pre and post introduction of stock futures trading. This study uses daily closing prices of the stock prices of top 10 companies of major sectors i.e. FMCG, Infrastructure, Pharmaceutical, Information Technology, Power, Banking & Finance, Media & Entertainment, Telecommunication, Petrochemical, Automobiles and Engineering listed on NSE to represent Indian stock market. ACF, Ljung-Box Statistic and Run tests are applied to investigate the impact of futures trading on efficiency of stock market. This study also uses ARCH LM to test hetroscedasticity so that EGARCH M model can be applied to test impact of futures trading on volatility of stock market.The result shows mixed effect on efficiency and volatility of stocks of different sector .