An Overview on the Investors' Perceptions towards Indian Capital Market

Abstract

Capital market is the backbone of any country‘s economy. It is one of the most vibrant sectors in the financial system, marking an important contribution to economic development. It facilitates conversion of savings to investments; thereby corporate entrepreneurs can raise funds for their business ventures.  Today long term investors are interested to invest in the capital market rather than invest anywhere. As risk and uncertainty are the inevitable factors in financial markets, the investors are much aware of the trends in trading of securities, government policies, performance of the corporate enterprises and so on. In India, common investors participating in the capital market is massive. But due to globalization and liberalization policies, the capital markets experiencing drastic swings over one and half decade. The main reason for slump and raise is fluctuations of investor confidence in the capital market. So it is important to understand the causes and measures of revival and or retaining of investors' confidence leading to capital mobilization and investment in right avenues creating, economic growth in the country. On this backdrop, an attempt is made to overview the trends of Indian capital market and investors' perceptions towards it.