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 Indian capital markets Overview
The economy of the country largely depends upon the performance
of the capital markets/stock markets.

The Better are stock market results of the country, The sounder is
consider its economy.

It also helps to boost the economy through savings & also maintain
the liquidity in the market.

Capital market can be defined as :-

“A market for medium to long-term financial instruments. Financial
instruments traded in the capital market include shares, and bonds
issued by the Government, corporate borrowers and financial
institutions.”
Indian capital markets Overview
In other words,
The capital market (securities markets) is the market for securities,
where companies and the government can raise long-term funds.
The capital market includes the stock market and the bond market”.

In India there are two major financial institution in capital markets:-

The National stock exchange .(NSE)

The Bombay stock exchange. (BSE).

National stock exchange
National stock exchange:-
The Trading on the NSE’s capital market commenced on
November 4, 1995. The growth of NSE turnover figures shows a
substantial rise from Rs. 1,805 crore (US $ 574.29 million) in the
year 1994-95 to Rs. 2,752,023 crore (US $ 540,141.59 million) in
2008-09.
The NSE’S Data network supporting close to 200,000 dealer
terminals.
The total market capitalization of securities available for trading
on capital market segment increased from Rs363,550 crore at
the end of March 1995 to Rs 28,96,194 as at end March 2009.
 National stock exchange
The Capital Market (CM) segment offers a fully automated trading
system.

 It is known as the National Exchange for Automated Trading (NEAT)

system.

Various types of securities e.g. equity shares, warrants, debentures

etc. are traded on this system. The average daily turnover in the CM
Segment of the Exchange during 2008-09 was Rs. 11,325 crore. (US $
2,223 million).

Nifty 50- Means the 50 stocks that were most favored by the
institutional investors . Companies in this group were usually
characterized by consistent earnings growth and high P/E ratios.
 Bombay stock exchange
Bombay stock exchange:- BSE is the one of the famous & major stock
exchange in India. It gives up-to-date information on the countries
economic performance through its market movement index &
indicator i.e. BSE sensex.
BSE India also plays major role in Indian capital market through its
electronic trading platform with more than 9400 stock broking
outfits across the country.

 In BSE, Sensex & list of 30 companies make the most watched index
in India.
Investment modes in India
Equity:- Means investment in Equity stocks e.g.
investment in stocks of HUL,ITC,etc.
Equity derivatives:- It can be classified into single stock
derivatives & index derivatives.
Single stock derivatives are the derivatives on specific
stock e.g. Castrol.
Index derivatives are derivatives on stock exchange
indices e.g. Nifty.
The employee stock option is also a equity derivatives.
Investment modes in India
Currency :- It is a transferable futures contract that
specifies the price at which a specified currency can be
bought & sold at a future date.
It helps the companies in hedging their underlying
currency exposure & will bring in more liquidity into the
market.
Commodity:- Commodity markets are the markets where
Raw or primary products are exchanged or sold.
e.g.:- Food, Metal, Minerals, Energy. etc
Investment modes in India
Now a days FII’S,Mutual funds, & Banks are also entered in the
Indian capital markets.
FII’S:- Means the foreign institutional investors
The overseas investors pump USD 816.69 million in Indian stock
market in first trading week of 2010.
According to the data released by SEBI , FII’S were net investors
of USD 973.22 million in debt instrument in the first trading week
of the year.
 Foreign institutional investors.

Conversi
on
Net Net
Gross Gross Investme Investme
Reporting Debt/ Purchases( Sales(Rs nt (Rs nt US($) (1 USD
Date Equity Rs Crore) Crore) Crore) million TO INR)*
30-Nov-09
Equity 1420.8 2151.1 -730.3 -156

Debt 206.1 458 -252 -53.8 Rs.46.81

 Mutual funds
Mutual funds:-Mutual fund is a professionally managed type of
collective investment scheme that pools money from many investors
and invests it in equities, Fixed income & money market funds.

History/Emergence :-
1964- UTI introduced mutual funds in market.
1987- Public Sector banks, Insurance Companies,SBI, PNB ,LIC, GIC,
entered into mutual funds.
1993- Private Sector such as,JP Morgan, Morgan Stanly, etc entered into
Indian Mutual fund market.
Mutual funds
Mutual fund:- statistics issued by SEBI

Gross Gross Net

Trading Purchases( Sales(Rs Investment
Date Debt/Equity Rs Crores) Crores) (Rs Crores)
11-Mar-10
Equity 468.6 713 -244.4

Debt 3659.7 2804.4 855.3

Reference
www.economictimes.com
www.nseindia.com
www.bseindia.com
www.moneycontrol.com
www.sebi.com
Thank You