CAPITAL MARKET VS MONEY MARKET

SUBMITTED TO, PROF TWESHA CHHARIYA

SUBMITTED BY, NEHA KUMARI VIKASH NARAYAN SACHIN TOMAR MD ATIULLAH KHAN ASHEESH KUMAR

Introduction of Financial Market

Act as mechanism for the exchange trading

of financial products under a policy framework.

A financial market is a market for creation

and exchange of financial assets. If you buy or sell financial assets, you will participate in financial markets in some way or the other.

 There are 22 stock exchanges in India, the

first being the Bombay Stock Exchange (BSE),

Role Factors affecting capital market in India of capital market in India

Performance of domestic companies Environmental Factors Macro Economic Numbers Global Cues Political stability and government policies Growth prospectus of an economy Investor Sentiment and risk appetite

Capital Market Instruments

Shares Stocks Bonds Debentures Foreign Exchange Fixed deposits

Money Market Introduction

Money Market provides short-term finance (for a

period less than 1 year.) The parties involved in Money Markets are Central Bank, Commercial Banks, Financial Institutions, Mutual Funds and Primary Dealers. Money Markets exist because of the main need of Working Capital Management where balance between Liquidity and Profitability is vital.

 The money market is an instrument that

deals with the lending and borrowing of short term finances. Indian Money Market is greatly dependent on real interest rate that is the interest rate

MONEY MARKET INSTRUMENTS

Call Money

Treasury Bills (T-Bills)

Repurchase Agreements Commercial Papers Commercial Bills Certificate of Deposit Banker's Acceptance Repo Instrument

FEATURES OF MONEY MARKET

Seasonality Multiplicity of Interest Rates Lack of Organized Bill Market High Volatility in Call Money Market Absence of Integration Limited Instruments

Conclusion
We find that capital market provides

financing to meet the denomination, liquidity, maturity, risk (credit, interest rate, and market). The capital market as a whole consists of overnight to long-term funding. Thus we can say that capital markets play a crucial role in the economic development of an action.