Herd Bias in Indian Stock Market under Extreme Market Conditions

1
Nithin Jose
Nithin Jose
2
Anjana K
Anjana K
3
Shalina Abdul Hameed
Shalina Abdul Hameed
1 St. Joseph’s College(Autonomous), Devagiri, Kozhikode

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GJMBR Volume 21 Issue B3

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Behavioural Finance is an area that needs to be studied within the context of the Indian stock market to assist investors in making rational investment decisions. This study examines the existence of herding behaviour in the Indian stock market considering various determinants of herd formation such as rising and declining market conditions and extreme market situations. The study is based on 46 companies selected from NSE Nifty 50 index based on their trading period. The methodology applied to validate the presence of herd formation is Cross-Sectional Absolute Deviation (CSAD) method. The results revealed that over the study period of extreme up market condition and high trading volume has shown herding behaviour in the Indian stock market.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Nithin Jose. 2021. \u201cHerd Bias in Indian Stock Market under Extreme Market Conditions\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 21 (GJMBR Volume 21 Issue B3): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: B26
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v1.2

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June 17, 2021

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English

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Behavioural Finance is an area that needs to be studied within the context of the Indian stock market to assist investors in making rational investment decisions. This study examines the existence of herding behaviour in the Indian stock market considering various determinants of herd formation such as rising and declining market conditions and extreme market situations. The study is based on 46 companies selected from NSE Nifty 50 index based on their trading period. The methodology applied to validate the presence of herd formation is Cross-Sectional Absolute Deviation (CSAD) method. The results revealed that over the study period of extreme up market condition and high trading volume has shown herding behaviour in the Indian stock market.

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Herd Bias in Indian Stock Market under Extreme Market Conditions

Nithin Jose
Nithin Jose St. Joseph’s College(Autonomous), Devagiri, Kozhikode
Anjana K
Anjana K
Shalina Abdul Hameed
Shalina Abdul Hameed

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