London Stock Markets

Bombay Stock Markets Russia Stock Markets

What is Capital Market ?

A capital market is a market of securities, where business enterprises and government can raise long term funds. Capital Market Primary market Secondary market

The capital market includes the stock market (equity securities) and the bond market (debt). Its a part of financial market.

Functions and Role :

Mobilization of savings Capital Formation Provision of Investment Avenue Speed up Economic Growth and Development Proper Regulation of Funds Service Provision Continuous Availability of Funds

Important Terminology
Market Capitalization : It is the total value of the tradable shares of a publicly traded company, it is equal to the share price times the number of shares outstanding. Stock Market Capitalization to GDP ratio : A ratio used to determine whether an overall market is undervalued or overvalued. Calculated as,
Market Capitalization to GDP = Stock Market Capitalization Market GDP X 100

The result of this calculation is the percentage of GDP that represents stock market value. A result of greater than 100% is said to show that the market is overvalued, while a value of around 50% is said to show undervaluation.

INDIAN CAPITAL MARKET

The Indian Capital Market is one of the oldest capital markets in Asia which evolved around 200 years ago. Chronology of the Indian capital markets 1830s: Trading of corporate shares and stocks in Bank and cotton Presses in Bombay. 1850s: Sharp increase in the capital market brokers owing to the rapid development of commercial enterprise.

1860-61: Outbreak of the American Civil War and ' Share Mania ' in India. 1894: Formation of the Hamada Shares and Stock Brokers Association. 1908: Formation of the Calcutta Stock Exchange Association.

Indian Capital Markets

Capital Market in India
Government Securities (Gilt Edged Market) Industrial Securities Markets
Development Financial Intermediaries Financial Institutions (DFIS)

New Issue Markets

Old Issue Markets (Stock Exchange)

IFCI ICICI SFCs

Merchant Banks Mutual Funds

IDBI

IIBI

UTI
Others (Financial Organ)

Leasing Companies

Venture Capital Companies

MARKET CAPITALISATION TO GDP RATIO (IN %)

Particulars BSE MKT CAP NSE MKT CAP 120.00 100.00 80.00 60.00 40.00 20.00 0.00 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2003-04 43.50 40.50 2004-05 54.30 50.70 2005-06 84.40 78.60 2006-07 85.50 81.20 2007-08 109.50 103.50 2008-09 55.40 52.00 2009-10 100.00 97.50

NET INVESTMENT BY FIIS (IN CRS)

Particulars Equity 2004 39960 2005 44123 2006 48801 2007 25236 2008 53404 2009 -47706 2010 110220

Debt
120000

5805

1759

-7334

5605

12775

1895

32438

100000
80000 60000 40000 20000 0 -20000 -40000 -60000

2004

2005

2006

2007

2008

2009

2010

LONDON STOCK EXCHANGE

The London Stock Exchange is a stock exchange located in the City of London in the United Kingdom. As of June 2011, the Exchange had a market capitalization of US$3.7495 trillion (short scale), making it the fourth-largest stock exchange in the world by this measurement (and the largest in Europe). The Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London. The Exchange is part of the London Stock Exchange Group.

Type
Location Founded Owner

Stock Exchange
London England, U.K. 1801 London Stock Exchange Group Christopher S. Gibson-Smith (Chairman) GBX 2966 (as of Dec 2010) US $ 3.6 Trillion (Dec 2010) FTSE 100, 250, 350, Small Cap, All Share Index londonstockexchange.com

Key people
Currency No. of listings Market Cap

Indexes
Website

LONDON STOCK EXCHANGE

Share Charts for London Stock Exchange (LSE)

LONDON STOCK EXCHANGE

Particulars Market Capitalization GDP (%) 2003 2004 2005 2006 2007 2008 2009 2010 $24,601 $28,159 $30,582 $37,943 $38,585 $18,520 $27,964 $31,070 132.20 127.85 134.12 155.24 137.27 69.69 128.68 138.33

Market Capitalization
$40,000
$20,000 $0 2003 2004 2005 2006 2007 2008 2009 2010

GDP (%)
200.00 100.00 0.00 2003 2004 2005 2006 2007 2008 2009 2010

CONTRIBUTION OF GDP TO GROWTH OF UNITED KINGDOM

RUSSIAN STOCK EXCHANGE

The Moscow Interbank Currency Exchange (Russian: ) or MICEX was one of the largest universal stock exchanges in the Russian Federation and East Europe. MICEX opened in 1992 and was the leading Russian stock exchange. About 239 Russian companies were listed, with a market capitalization of US$950 billion as of December 2010. MICEX consisted of about 550 participating organizations and members, which trade for their clients. In 2006 the volume of transactions on the MICEX reached 20.38 trillion rubles (US$754.9 billion), representing more than 90% of the total turnover of the leading stock exchanges in the Russian stock market. In 2011 MICEX merged with Russian Trading System creating MICEX-RTS.

Type
Location Founded Owner Key people Currency No. of listings Market Cap Indexes Website

Stock exchange
Moscow, Russia 1992 MICEX Group Ruben Aganbegyan (President) Russian ruble 250 US$770.6 billion MICEX Index www.micex.com

RUSSIAN STOCK EXCHANGE

1990 - Birth of Russian stock market. 1992- Creation of The Moscow Interbank Currency Exchange, the Moscow Central Currency Exchange, the Russian Commodity Exchange, St. Petersburg Stock Exchange and the South-Ural Stock Exchange 1993 - Beginning of the sale of shares of privatizing companies, Beginning of the state bond market- GKO 1994 - October, Black Tuesday- the dollar exchange rate collapses, cutting the purchasing power of the Russian Ruble in half.

RUSSIAN STOCK EXCHANGE

Market Capitalization of listed companies (% of GDP)
Country Name Market Capitalization, bn $ (Left scale) 2005 329 2006 966 2007 1325 2008 374 2009 763 2010 960 2011 1041

Ratio of stock market capitalization to GBP (right scale)

1,500 1,000 500 0 2005 100 50 0 2005 2006 2007 2006 2007

43

95

98

27

60

66

61

2008

2009

2010

2011

2008

2009

2010

2011

RUSSIAN STOCK EXCHANGE

Price Volume 1998 0.1002 0 2012 1502.65 441.657

CONTRIBUTION OF GDP TO GROWTH OF RUSSIA

COMPARISION OF INDIA, RUSSIA & BRITIAN

Market Capitalization of listed companies (% of GDP)
Country Name 2002 2003 2004 2005 2006 2007 2008 2009 2010

World India Russia United Kingdom 160.00 140.00 120.00 100.00 80.00 60.00 40.00

71.97 25.83 35.99 115.64

86.96 46.56 53.63 132.20

91.96 53.75 45.34 127.85

96.72 66.31 71.80 134.12

110.12 86.08 106.79 155.24

118.84 146.42 115.64 137.27

58.75 53.18 23.91 69.69

85.39 85.41 70.49 128.68

90.42 93.46 67.88 138.33

India

Russia

United Kingdom

20.00 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010

World

CURRENT MARKET POSITION OF COUNTRIES

Stock Market - Current Situation Capitalization Country (Billion $) USA CHINA GB India Germany 17859 4087 3847 1631 1622 The Share in the Bond Bond world Market market capitalization (%) (Billion $) (%) 31 7 7 3 3 32534.5 3106.9 4782.3 759 5362.5 34.3 3.3 5 0.8 5.7

Brazil
Russia

1553
1041

3
2

1512.8
224.3

1.6
0.2

CURRENT MARKET POSITION OF COUNTRIES

20000 0

40 30 20 10 0 USA CHINA GB India Germany Brazil Russia

50