Factors influencing investors behaviour in stock market

The Indian stock market is a dynamic and intricate system influenced by various factors. One such factor is the psychological and social media impact on investors. The rise of social media platforms, as well as the increasing use of technology, has revolutionized in recent years also the of way information is shared and accessed. The growth of social media and the increasing use of technology are leading to a shift in market insights and trade decision making towards social media platforms. Investors now have instant access to a wealth of information and opinions through platforms like Facebook and Twitter. These studies of collectively demonstrate the significance of psychological and social media factors in shaping investor behaviour in the Indian stock market. Other studies conducted in different countries have also shown the impact of psychological factors on investors’ decision making. The introduction shows that the Indian stock market has undergone a significant change in investor behaviour and decision-making processes. Traditional sources of information are being supplemented, if not replaced, by social media platforms, leading to the emergence of a new breed of investors who heavily rely on social media for market insights and trading decisions. Investors are advised to be aware of the psychological and social media impact on the stock market. This awareness can empower them to make rational, independent decisions, avoiding the pitfalls of herd behaviour and emotional responses that may lead to suboptimal choices.