INTRODUCTION

Capital markets provide for the buying and selling of long term debt or equity backed securities. The capital markets channel the wealth of savers to those who can put it to long term productive use, such as companies or governments making long term investments.

Financial regulators, such as the UK's Financial Services Authority (FSA) or

the U.S. Securities and Exchange Commission (SEC), Indias Securities and Exchange Board of India (SEBI) etc.

oversee the capital markets in their designated jurisdictions to ensure that

investors are protected against fraud, among other duties.

21st century capital markets are almost invariably hosted on computer based Electronic trading systems; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or

elsewhere.
The existence of secondary markets increases the willingness of investors in primary markets, as they know they are likely to be able to swiftly cash

out their investments if the need arises.

STRUCTURE OF INDIAN CAPITAL MARKET

PESTEL analysis
POLITICAL FACTORS

The capital market of India is very vulnerable. India has been politically instable in the past but
it is a little politically stable now-a-days.the political instability of temployment laws

tax policy
trade restrictions and tariffs political stability

he country has a very strong impact on the capital market.

ECONOMICAL FACTORS The economical measures taken by the government of India has a very strong relationship with the capital market. Whenever the annual budget is announced the capital market goes up and down with the economical policies of the government .

 Inflation rate Economic growth Exchange rates Interest rates

SOCIAL FACTORS
India is a country of unity in diversity .India is socially rich but the capital market is not very attached with the social factors .Yes, there is some relation between the social

factors with the capital market.

Emphasis on safety Career attitudes

Population growth rate

Age distribution Health consciousness

TECHNOLOGICAL FACTORS
The technological factors have not that much effect on the capital market. India is technological backward country. Same as social factors, technological factor can have an effect on an individual form but it cannot have a big impact on a whole of capital market. R&D activity Technology incentives Rate of technological change Automation

ENVIORNMENTAL FACTORS

Initially, the environmental factors dont play a vital role in the capital
market. But the time has changed and people are more eco-friendly

This is really bothering them that if any firm or industry is environment friendly or not. An increasing number of people, investors, corporate executives are paying importance to these facts, the capital markets still see the environment as a liability.

LEGAL FACTORS
Legal factors play an important role in the development and sustain the

capital market. Legal issues relating to any industry or firm decides the fate
of the capital market. If the govt. of India or the parliament introduces a new law that can affect the running of the industry then the industry will be demotivated and this demonization will lead to the demonization of the investors and will result in the fall of capital market.

Current trends in Indian capital market

Currently, Indias economic growth is second only to China but unfortunately the phenomenal growth rate has not reflected in the performance of its capital market. Performance of Indian capital market is not merely reflected by the

performance of its secondary market and indices of stock exchanges, but

also by the positioning of the market in the global financial circle in terms of reputation and presence of foreign companies.

Types of Securities in Indian capital market

A capital market is a market for securities (debt or equity), where business enterprises and government can raise It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). long-term funds. capital market offering (instruments) Secured premium notes Deep discount bonds Equity shares with detachable warrants Fully convertible debentures with interest Exchange traded funds

COMPANY PROFILE
AnandRathi Securities Ltd (ARSL) was founded in 1994 by Mr. AnandRathi to undertake the activities in business consulting and institutional equity sales. ARSL got rechristened as AnandRathiFinancialServices Ltd in January 2008 and it currently undertakes the business operation of wealthmanagement services and depository services at CDSL. AnandRathi group is also engaged inactivities like equity broking, commodity broking, Investment banking, margin trade financing,distribution of financial products and corporate advisory. During FY08-09, as a part of groupsrestructuring exercise, BSE membership and Investment banking has been transferred from AFRSL to its subsidiaries, AnandRathi Shares & Stock Brokers Limited and AnandRathi Advisors Limited.

AnandRathi(AR) is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage &

distribution of equities, commodities, mutual funds and insurance - all of

which are supported by powerful research teams. The entire firm activities are divided across distinct client groups:

Individuals, Private Clients, Corporates and Institutions.

ORGANOGRAM

SWOT ANALYSIS OF ANAND RATHI

STRENGTHS
On-line trading products
Well-maintained infrastructure Dedicated, Intelligent and Loyal staff Good co-operation between employees

WEAKNESSESS
Few offline flexible plans Less educational and awareness activities Less foreign investors attraction plans

Service quality is not maintained accordingly how they are promoted

OPPORTUNITIES
Has local support in India.

Growing India stock market opportunities.

Growing International financial market Attract the customers who are dissatisfied with other brokers & DPs Marketing at rural and semi urban areas.

THREATS
High competition by major players in Indian Broking industry.
Industry depends upon only stock market. Banking industries in stock market. Company is new to the market

REVIEW OF LITERATURE
Martin Webera & Lars Nordena.(November, 2004),This paper analyzes the response of stock and credit default swap (CDS) markets to rating announcements made by the three major rating agencies during the period 20002002. Applying event study methodology, we examine whether and how strongly these markets respond to rating announcements in terms of abnormal returns and adjusted CDS spread changes.

Robert W. Holthausen, Richard W. Leftwich (September 1986),The

evidence in this paper suggests that downgrades by both Moody's and
Standard and Poor's are associated with negative abnormal stock returns.

 Significant negative abnormal performance can still be detected after eliminating observations containing obvious concurrent (potentially contaminating) news releases. There is little evidence of abnormal performance on announcement of an upgrade. Significant abnormal returns are associated with announcements of additions to the Standard and Poor's Credit Watch List.

Holthausen, John M. Handi & Robert W.(June 1992),This paper

examines daily excess bond returns associated with announcements of additions to Standard and Poor's Credit Watch List, and to rating changes by

Moody's and Standard and Poor's.

Reliably nonzero average excess bond returns are observed for additions to Standard and Poor's Credit Watch List

 when an expectations model is used to classify additions as either expected or unexpected.

Holthausen, John M. Handi & Robert W. (November 2004), Analysis

Companys credit default swap spread is the cost per annum for protection against a default by the company. In this paper we analyze data on credit default swap spreads collected by a credit derivatives broker. We first examine the relationship between credit default spreads and bond yields and reach conclusions on the benchmark risk-free rate used by

participants in the credit derivatives market.

We then carry out a series of tests to explore the extent to which credit rating announcements by Moodys are anticipated by participants in the

credit default swap market.

Research Methodology
1. Problem Statement
There are many credit rating agencies like ICRA, CARE, FITCH etc. They rate the issuing instrument to show the credit worthiness of the

borrower for investors of corporate body.

But the instrument listed on stock exchange may also be affected by such rating in terms of the market price of same.

2. Research Objectives
Primary Objective Secondary Objectives

3. Research Design
Research design is a conceptual structure within which the research would be conducted. The function of research design is to provide for the collection of the relevant information with minimal expenditure of

effort, time and money.

4. Type of Design
The research design considered for this study is Descriptive Co-relational

research. The purpose of the co-relational research is to examine the

type (positive or negative) and strength (strong, moderate or high) of relationship among study variables.co-relational research is descriptive in nature as there is no manipulation of variables or experimental treatments.

5. Sampling
Sample population: The target population for the study includes all those equity shares listed on the CNX NIFTY and rated by rating agencies.Investors who invest in IPO.

Sample size:
The study includes 50 Equity Share on CNX Nifty rated by the rating agencies.

Sampling method:
The study conducted by taking Non-probability convenience sampling method.

6. Tools for Analysis

The statistical tools used for data analysis are:
Regression analysis Percentage analysis

Graphical presentation and

Cross tabulation Chi-square test.

7. BENEFITS
The aim of the present study is to empirically investigate the impact of fundamental change in price of stock.

This study will be useful for the investors who might be able to identify
some basic economic variables that they should focus on while investing in stock market.

8. Limitations of the Study

The scope of the study:

The study is limited to only equity share listed on NSE and not all other
stock exchanges. So the result obtained represents only the securities listed on NSE index.

Sample size:
The sample selected for the study is 50 equity shares which are rated and listed on NSE. The study conducted with sample of equity share and limited

to it. So the sample selected represents only equity share and not all
instruments. Secondary Data: The study is based on the secondary data source. So all limitation of secondary data source like non-sophistication and obsolescence can be applied over here.

BIBLIOGRAPHY
Capital Market
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<www.tradingeconomics.com/Brazil/Stock-Market>.
Exchange, Moscow. www.moex.com. 10/11/2013 November 2013 <www.moex.com/en/aboutus>. Exchange, Shanghai Stock. www.sse.com.cn. 20/11/2013 November 2013

<english.sse.com.cn/home/About SSE>.

www.bmfbovespa.com. 8 May 2008. 25/11/2013 November 2013 <www.bmfbovespa.com.br/enus/home.aspx>. www.szse.cn. 22/11/2013 November 2013 <www.szse.cn/main/en>. www.wikipedia.org. www.wikipedia.org. 10/11/2013 November 2013

<en.www.wikipedia.org/wiki/Moscow_Exchange>.

 http://en.wikipedia.org/wiki/Capital_market http://www.ftkmc.com/equities.html http://www.nseindia.com/content/us/ismr2011

Reforms in Capital Market

http://www.legalera.in/reforms-in-indian-capital-markets.html http://www.ftkmc.com/equities.html

Capital Market Trends

http://www.sebi.gov.in
http://www.dnb.co.in/equitybroking/Global%20Scenario.asp

Company Profile
http://www.AnandRathi.org.in//