An Unprecedented Surge: Understanding the Investor Boom in India
B. Mahalakshmi1, Manasvini Anand2, Aghilan. M3, L. Jalaja4
1B. Mahalakshmi, Student, Department of Commerce, SASTRA Deemedto-be University, Chennai (Tamil Nadu), India.
2Manasvini Anand, Student, Department of Commerce, SASTRA Deemed-to-be University, Chennai (Tamil Nadu), India.
3Aghilan. M, Student, Department of Commerce, SASTRA Deemed-to-be University, Chennai (Tamil Nadu), India.
4Dr. L. Jalaja, Assistant Professor, Department of Commerce, SASTRA Deemed-to-be University, Chennai (Tamil Nadu), India.
Manuscript received on 20 March 2025 | First Revised Manuscript received on 01 April 2025 | Second Revised Manuscript received on 02 May 2025 | Manuscript Accepted on 15 May 2025 | Manuscript published on 30 May 2025 | PP: 102-107 | Volume-5 Issue-1, May 2025 | Retrieval Number: 100.1/ijef.A261705010525 | DOI: 10.54105/ijef.A2617.05010525
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The COVID-19 pandemic has caused remarkable disturbances in the global financial markets, causing a ripple effect in investor behaviour. The Indian stock market has experienced a surge in investor interest amid this crisis. This research paper aims to provide a refined understanding of the reasons behind this phenomenon and its profound implications. By focusing on qualitative research methods, such as interviews, questionnaires, and content analysis, this paper explores the underlying psychological reasons behind the entry of new retail investors into the market during the COVID-19 pandemic. The conclusions highlight the need to understand investor behaviour during times of crisis and underscore the resilience of the Indian stock market in the face of global uncertainty. We’ve also inspected factors influencing investor participation, like socioeconomic background, risk perception, and access to information. Moreover, we also scrutinise the role of technological advancements, such as online training and trading platforms, in facilitating greater market access. The findings of this research paper contribute valuable insights into the underlying psychology behind investor behaviour and the dynamics of the financial market, specifically during times of global crisis. The qualitative perspective in this study complements various quantitative analyses, providing a nuanced understanding of the human dimensions. In conclusion, this study helps students, novice and experienced researchers, and market participants devise strategies to enhance market resilience, investor education, and regulatory frameworks in the face of unknown challenges.
Keywords: Investor Boom, COVID-19, Indian Stock Market, Investor Behaviour, Financial Literacy, Retail Investor.
Scope of the Article: Finance