A Study On The Influence Of Investor Psychology On Stock Market Trends At Bajaj Finserv, Nagpur

Authors

  • Pratik Champat Halwale
  • Atul Tekade

DOI:

https://doi.org/10.52783/jns.v14.3710

Keywords:

Investor psychology, stock market trends, behavioural biases, decision-making, market dynamics, risk tolerance, Bajaj Finserv

Abstract

Investor psychology plays a pivotal role in shaping stock market trends, significantly impacting investment decisions and market dynamics. The study explores the psychological factors influencing investors at Bajaj Finserv, Nagpur, including risk tolerance, behavioural biases, and decision-making patterns. By leveraging primary data from structured surveys and interviews, the research delves into how emotional and influence market activities. Secondary data from financial reports and stock performance analyses further substantiate the findings, offering insights into the correlation between investor sentiment and market fluctuations. The research reveals that market trends are not solely driven by economic fundamentals but are heavily influenced by collective investor behaviour, amplified during periods of volatility. The study underscores the importance of incorporating behavioural insights into financial strategies, enabling organizations and individual investors to make informed, rational decisions. Practical recommendations are provided to mitigate the adverse effects of psychological biases on investment outcomes. This research offers a unique perspective on integrating psychological and financial analysis to enhance understanding of stock market trends, contributing valuable insights to the field of behavioural finance.

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References

Books:

 Shiller, R. J. (2015). Irrational Exuberance (3rd ed.). Princeton University Press.

 Barberis, N., & Thaler, R. (2003). A Survey of Behavioural Finance. In Handbook of the Economics of Finance, Elsevier.

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 Shiller, R. J., & Akerlof, G. A. (2009). Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism. Princeton University Press.

Research Papers:

 Benartzi, S., & Thaler, R. H. (1995). "Myopic Loss Aversion and the Equity Premium Puzzle," Quarterly Journal of Economics, 110(1), 73–92, February 1995.

 Statman, M. (1999). "Behavioural Finance: Past Battles and Future Engagements," Financial Analysts Journal, 55(6), 18–27, November/December 1999.

 Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). "Investor Psychology and Security Market Under- and Overreactions," Journal of Finance, 53(6), 1839–1885, December 1998.

 Shleifer, A., & Vishny, R. W. (1997). "The Limits of Arbitrage," Journal of Finance, 52(1), 35–55, March 1997.

 Kaustia, M., & Knuuttila, M. (2012). "Investor Behaviour and Stock Market Trends: An Empirical Analysis," Journal of Behavioural Finance, 13(4), 263–275, December 2012.

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Published

2025-04-15

How to Cite

1.
Halwale PC, Tekade A. A Study On The Influence Of Investor Psychology On Stock Market Trends At Bajaj Finserv, Nagpur. J Neonatal Surg [Internet]. 2025Apr.15 [cited 2025Apr.24];14(15S):1097-103. Available from: https://jneonatalsurg.com/index.php/jns/article/view/3710

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