Narratives Driven Bull Market: The Indian Stock Market 2020-2024

Abstract: Narratives play a key role in shaping the opinions of people. Advent of social media has accentuated the importance of narratives in economic and financial decisions. Narrative is a piece of information gone widespread due its acceptability and relevance to the masses. Frenzy during bull markets is usually associated with a flow of narratives building momentum. Objectives of this study is to examine the relationship between the bull market in the Indian Stocks during 2020-24 and the socio-economic narratives in circulation, effects of sustained favourable narratives during negative socio-economic event and quantification of the relationship. Only secondary data is used for this study. For collection of data, individual phrase, summarizing each narrative and relevant keywords for the phrase are used to make the search relevant and get precise textual count. Multiple regression model is used for this study to test the existence of relationship between Nifty 50 Index and narratives. The study indicates that the rise in Indian stocks during 2020-24 is explained by the independent variables - ‘Atmanirbhar Bharat’ and ‘India, Emerging Manufacturing Powerhouse’, individually and collectively