  The money market and the capital market of the Indian financial markets have
a symbiotic relationship in the development of the Indian economy. The nature
and the characteristics of the markets differ to a large extent as the money
market ensures liquidity in the system through the monetary policy by the
regulators; capital markets propel and act as the engine driver for the economy
in the long term. Therefore, the final throughput of the economy is the
aggregation of the output of both the markets. Does that imply that the
development of both markets is parallel in nature or is any one superior to the
other or are they competitors? To understand the influence of one over the
other the research was undertaken through a correlation matrix and time series
model. A predictive model was further constructed for predicting the volume of
money market instrument on the basis of fourteen days historical.
