CAPITAL

MARKET
 GROUP MEMBERS

SUBJECT: INVESTMENT AND PORTFOLIO MANAGEMENT (IAPM)

GROUP NO. 2

Sapna Jadhav : 510

Pratham Kushwaha : 513
Aarti Soni : 514
Ronak Bejjenki : 515
● Rutuja Mahimkar : 516
 INTRODUCTION

The capital market is the backbone of every country as it

can affect the financial position of the country and
regulate the economy. The heart of economic growth lies
in the capital market which helps in providing the
allocation of funds and mobilization of resources.
The major understanding and regulation of the capital
market have been an important requirement for the
industrial and commercial development of the
country. The capital markets cater to the need for a
long-term fund that is required for the development of
the industrial and commercial sectors.
 FUNCTIONS OF CAPITAL MARKET

While from a broader perspective, Capital Markets is viewed as

a market of financial assets with long or infinite maturity, it
actually plays a very important role in mobilizing resources and
allocating them to productive channels. The important functions
and significance of the markets have been discussed below:

2. Promotes 3. Stable &

1. Economic 4. Availability
Saving Systematic
Growth of Funds
Habits prices
1. DEBT MARKET 2. BOND MARKET

CAPITAL
MARKET

3. STOCK MARKET
4. EQUITY MARKET
 TYPES OF CAPITAL MARKET
There are mainly two types of capital market, which are:

1. Equity Securities 2. Debt Securities

1. Equity Shares 1. Bonds

2. Preference Shares 2. Debentures

 INVESTMENT STRATEGIES

Investment strategies are consistent and methodical approaches to investing. Some of

these are:

GROWTH INVESTING
BUY AND HOLD

DIVIDEND INVESTING
VALUE INVESTING

MULTI-ASSET INVESTING
PASSIVE INVESTING
ROLE OF CAPITAL MARKET

MOBILIZES LONGTERM
PROVIDES EQUAL
SAVINGS
CAPITAL

ACHIEVE
QUICK VALUATION OPERATIONAL
EFFICIENCY

INTEGRATION
FACTORS AFFECTING CAPITAL MARKET
Let’s discuss some of the factors that affect the stock market. Some of these are:

1. RBI’s MONETARY POLICY AND INTEREST RATES

2. UNION BUDGET

3. INFLATION

4. GOVERNMENT POLICY

5. EXCHANGE RATE

6. POLITICAL STABILITY
 REFORMS
THE MAJOR REFORMS UNDERTAKEN IN CAPITAL MARKET OF INDIA
INCLUDES:

1. ESTABLISHMENT OF SEBI

2. ESTABLISHMENT OF CREDITORS RATING AGENCIES

3. INCREASING OF MERCHANT BANKING ACTIVITIES

4. RISING ELECTRONIC TRANSACTIONS

5. INVESTOR’S PROTECTION

6. COMMODITY TRADING
 CONCLUSION

THE CAPITAL MARKET PLAY A VITAL ROLE IN THE ECONOMIC DEVELOPMENT OF ANY
COUNTRY. THIS STUDY HIGHLIGHTS THE FACT THAT THE VIABILITY OR IMPACT OR
UNPROFITABLE OF THE STOCK MARKET AFFECTS INVESTMENT IN ALL SECTORS. HENCE,
THE NEED TO PUT ADEQUATE MEASURES IN PLACE TO SUSTAIN SMOOTH OPERATION
OF THE MARKET AND MARKET MAKE IT ATTRACTIVE TO INVESTORS.
THANK YOU