Study on stock market trends has been an area of vast interest both for who wish to make a profit by trading stock in the stock market. India is one of the emerging economies, which has witnessed significant developments in the stock markets during the liberalization policy initiated by the government. However, investing in banking shares include high risks which can be guided but not controlled. The banking sector is the backbone of country’s economy. This sector has given very good return to the investors in the past. But the recent financial crisis has proved, that the Banking stocks tend to be more volatile than other stocks. This paper is a humble attempt to measure the volatility of the Bank index stocks and compare it with that of the volatility of NIFTY. Stock markets, in general, are considered volatile and volatility plays a key role in measuring the risk-return trade-offs. Estimating volatility enables the pricing of securities and, understanding stock market volatility or individual stock price volatility enables good decisions on the part of investors.  Investors who are risk-averse would not be happy to invest in a highly fluctuating stock, whereas those with a thirst for riskiness would happily invest in a highly volatile market. The study evaluates the performance of banking stocks mainly to identify the required rate of return and risk of a particular stock based upon different risk elements prevailing in the market and other economic factors.