THE ROLE OF ECONOMIC INDICATORS IN SHAPING INDIAN STOCK MARKET INVESTMENT
The Indian stock market is influenced by a multitude of factors, with economic indicators and market sentiment playing pivotal roles in shaping investment decisions. This study explores the significance of these two forces and their interplay in driving market behaviour. Economic indicators, such as GDP growth, inflation, and unemployment rates, provide investors with objective data that reflects the overall health of the economy, guiding long-term investment strategies. However, challenges such as data lag, revisions, and limited scope can hinder their effectiveness in real-time decision-making. Conversely, market sentiment, often driven by emotional and psychological factors, can lead to short-term volatility and irrational market movements. Despite its inherent unpredictability, sentiment plays a crucial role in shaping investor behaviour and stock prices. The study highlights the limitations and challenges of both economic indicators and market sentiment, emphasizing the importance of integrating both perspectives to navigate the complexities of the Indian stock market. Investors who adopt a balanced approach, considering both economic data and sentiment-driven insights, are better equipped to make informed decisions and mitigate risks in an ever-changing market environment.
Institutions
- Calorx Teachers' University (IN)
- Ahmedabad University (IN)
Publication Details
- Journal
- Zenodo (CERN European Organization for Nuclear Research)
- Published
- 2025-03-01
- DOI
- https://doi.org/10.5281/zenodo.15631155
- Primary Topic
- Financial Markets and Investment Strategies
- Type
- article
- Field-Weighted Citation Impact
- 0.00