Exploring Investor Sentiment and Nifty 50 Volatility: A Behavioural Finance Perspective

This research paper explores a thorough behavioral finance approach to examine the complex relationship between investor sentiment and volatility in the Nifty 50 index. Though behavioral finance offers insights into how psychological biases and sentiment-driven trading behaviors can affect market dynamics, traditional financial theories frequently presume that investors are rational and that markets are efficient. This paper studies how investor sentiment affects the volatility of the Nifty 50 index by exploring quantitative analysis and case studies of research literature. The findings will provide critical information for investors, market players, and policymakers. The research study also provides a comprehensive overview of the necessary research methodologies and instruments for stock analysis.