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Economic Resilience and Rationality: A Study of Indian Stock Investors’ Investment Decisions and Performance

Vol 10 , Issue 1 , January - June 2023 | Pages: 41-56 | Research Paper  

 
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https://doi.org/10.17492/jpi.mudra.v10i1.1012303


Author Details ( * ) denotes Corresponding author

1. Arjun Hans, Research Scholar, The Business School, University of Jammu, Kathua, Jammu & Kashmir, India (arjunhans3@gmail.com)
2. * Farah Choudhary, Sr. Assistant Professor , The Business School, University of Jammu , Jammu, Jammu & Kashmir, India (farah_choudhary@yahoo.co.in)

The objective of this research is to explore the relationship between panic selling during Covid-19 pandemic break and investment performance. Also, this research investigate whether retail investors indulge in heavy trading during the time of pandemic outbreak. The paper uses both primary and secondary data to explore the relationship between falling markets during Covid situation and investors’ behaviour. Primary data is collected from 300 retail Indian investors through questionnaires. Secondary data is taken from Yahoo finance. This study used Factor analysis, Regression analysis and ANOVA in SPSS. The relationship between panic selling and performance is found to be positive and strong which inferred that during the market crashes investors feel fearful and indulge in panic selling which further results is falling prices and poor performance. Future research can take more than one market crash into account. 

Keywords

Covid-19; Market crash; Panic selling; Investor behaviour and performance

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