Author(s): Raja Babu P
The capital market is the platform suppliers' interested parties come together to buy and sell and involving in trading activities. The capital market consists of two equity and bond markets. It helps accelerate financial resources through investment opportunities and enhances the financial system in India. The capital market has supported the financial system and induced economic growth through capital formation and getting a quantum of income to the investors. It adds on using an innovative instrument with the objective of the secured and low cost of capital and full of confidence in the minds of the investor. The debt market can also defuse stress on the banking sector by diversifying credit risk in the economy. The main aim of this paper is to understand an overview of the capital market since nineteen eighty, to evaluate the capital market and the yield on a government bond, to investigate the relationship between capital market components with the gross domestic product, to forecast the capital market in BSE for coming the independence year 2047. The study used the ARIMA model for anticipating investments by investors in India.