Supply and demand

There has to be a balance between demand and supply for any share,
imbalance will lead to change in price of shares. If a company is doing
good then everyone would desire to purchase the shares of the said
company which would lead to shortage of shares resulting to increase in
price of such shares, similarly if there is abundance of shares and no one
buys it then it would pull down the price

Interest rates

Bank rates directly affects the prices of shares in the market. If RBI
increases the bank rates then the companies will pay more on loans and
earn lesser profit so it will reduce the stock price, likewise if the bank rates
are low then Companies will borrow more and make more profit, in that
case the stock price will rise.

Exchange rates

Thus, investing in the stock market is something that can give the most
returns compared to other forms of investment. But it also carries with it
significant risks. But, nobody can deny that if these risks are calculated,
then the yield will definitely match up to the risks. The above factors are
some that directly affect the stock market, and a keen eye in these factors
will help you decide when to buy shares or sell them. Timing is key when it
comes to stock market investment.

When the value of the rupee rises, the price of Indian products abroad rises, leading to
decrease in demand , affecting the exports market, and stock prices fall. At the same time,
importers can buy products at a cheaper price, and their inventory increases. When Indian
rupee weakens, the opposite happens. In other words, the share price of exports rises and the
share price of imports falls.
Other factors

Some of other factors affecting the stock market include political turmoil, civil wars and
riots, or terrorist attacks. All of these incidents sharply drop stock prices and affect market
volatility.

Natural calamities

Disasters such as earthquakes and floods significantly lower the price of the stock market.
This happens because of destruction of property and other assets, causing the company to
incur large losses, leading to a decline in the stock price. Failures in production and
transportation of products are affects the sales. Therefore, when a natural disaster occurs,
stock prices fall.

Inflation-

As inflation rates rises, speculation of future prices for goods and services leads to market
volatility. As prices rise, many investors speculate that companies will lose profitability.
Therefore, some investors sell their shares and the market price fall. At the same time,
investors who are optimistic about the company's future profits buy these stocks and create
an unstable environment.

Key Players in the Capital Market

Top investment banks on the list are Goldman Sachs, Morgan Stanley, BAML, JP Morgan,
Blackstone, Deutsche Bank, Citi, Macquarie, HSBC, ICBC, Credit Suisse, Bank of America
Merril Lynch, and public accounting firms.

Major Suppliers and Buyers of Capital market

Suppliers-
Commercial Banks
Insurance Companies
Business Corporations
Buyers
Treasury Departments
Corporations
Securities Dealers
Risk associated with Capital market
Risk and reward are directly related in capital market. This means desire for earning higher
returns in stock market comes high risks attached with it . Investment in stock market is risky
but it pays off higher rewards than any other investment portfolios. One of the major
reasons for this risk in stock market is market volatility. The stock market is
extremely volatile and unpredictable.

'India's ECM (equity capital market) volume year to date in 2020 is already at $33.4 billion