The Mind's Influence on Market Moves: A Study of Investor Sentiment Proxies

Investor sentiment, a crucial factor in financial market dynamics, influences stock price movements and market behavior. This study delves into the diverse proxies used to measure investor sentiment, exploring their relevance and application in context of Indian stock market. Commonly employed sentiment indicators, including market trading volumes, dividend Yield, volatility index, turnover ratio etc. are explained for their effectiveness in capturing the mood and outlook of market participants. By synthesizing existing literature and empirical findings, this study provides valuable insights into relationship between sentiment proxies and stock market trends, guiding investors, policymakers and researchers in leveraging sentiment-driven strategies. This comprehensive analysis aims to enrich the understanding of investor behavior & its implications for the Indian stock market’s performance.