I tried to take a deeper look on my typing and guessed that problem may be with the touchpad. I disabled touchpad of laptop and then tried again. This time, there was no cursor jumping. So, After few hours of research I found that the problem is due to touchpad. While typing, sometimes finger touches it and cursor goes on different location.
So, the fix of this problem is disabling touchpad? No it is not. We can not go and disable touchpad before typing and then enable it again after finishing typing. We need an automatic way to do that. In few laptops, touchpad comes with a button to enable/disable it. But most of the laptops do not have this kind of button. For these laptops I found a nice tool. With few Google searches, I found a freely available tool called "TouchFreeze." This nice tool disables touchpad tapping automatically when you starts typing.
Download this tool and install in your system. It will stay in system tray. You do not need to do any kind of configuration to use this tool. Whenever you want to close this tool, right click on system tray icon and click Exit
Download TouchFreeze Here