Stock market volatility touches every participant directly/indirectly in the capital market.  General feeling is that the stock markets worldwide have become very fragile in the recent past on account of various developments such as Asian crisis.  Brazil Real fall and Russian debacle.  Many far-reaching stock  reforms have been introduced in the Indian market for the last few years. These reforms, in turn, changed market structure.  Changing market  structure influences nature of stock price behavior.

PRIMARY SECURITIES MARKET

 The primary capital market (PCM) plays an important role in the overall functioning of securities market.  Despite several measures the primary market remained lackluster till recently and the pick up is gradual. According to the SEBI annual report fewer number of issues accessed the primary market during the year and the significantly lower than that of the Previous financial year.  Share of the equity issues, in terms of number and amount Mobilized, however, was higher in this financial year compared to the previous one.  More than three-fourths of the total amount was occupied second and no resourced were in the previous years, banks and financial institutions continued for 84.5% of the resourced mobilized compared to 68.1% in 2001-02.  All other industries shared the remaining portion.

 CAPITAL RAISED DURING 2002-03

 During the financial year 2002-03, primary market witnessed a decrease of 46.0% in the amount raised and also a decrease of 25.7% in the number of issues launched compared to the same period in 2001-02.  A total of 26 issues (14 public issues and 12 rights issues) opened during the financial year 2002-03 raising Rs. 4070.29 crore (Rs. 3638.6 crore through public issues and 431.6 crore through rights issues).  In 2001-02 a total of 35 issues opened for raising Rs. 7543.0 crore (20 public issues Rs. 6501.8 crore and 15 rights issues Rs. 1041.2).

 INDUSTRY WISE CAPITAL MOBILIZATION

 Three industries ciz. Banks / Fls, Engineering and Telecommunications accounted for 93.2 per cent of the resourced mobilized in 2001-02.  In the current year, the same three industries accounted for 84.7 per cent of the funds raised.  With the banks and Fls, increasing their share from 68.3 per cent to 84.5 per cent and companies in the Telecommunications sector and raising any resourced.  In 2002-03 the three industries which accounted for 95.3 per cent of the resources where Banking / Fls, Information Technology, Paper and Pulp.

 SECONDARY MARKET

 During 2002-03, performance of Indian Stock market was, by and large, a lackluster one, S&P CNX NIFTY and BSE Sensex both registered