International Journal of Financial Management

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Investor’s Herding:A Study of the National Stock Exchange of India


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1 University Business School, Punjab University, Punjab, India
     

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The aim of this paper is to study investor behaviour, specifically the herd behaviour, in the National Stock Exchange of India. The presence of herding in the Indian securities market has been tested on the daily closing prices of the companies listed on the Nifty50 during the period of 2001-2016. To analyse the data, the data have been collected from the PROWESS database. The present study has been using the methodology given by Christie & Huang (1995). As previous studies showed the presence of herding in the developing economies, the result of the present study shows no significant sign of herding during the period of market stress as a whole in the National Stock Exchange of India. The results of the study indicate the fact that Indian investors are rational, and they do not mimic the actions of others. They used their private information rather than rely on other’s information.

Keywords

Herding, Nifty50, National Stock Exchange.
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  • Investor’s Herding:A Study of the National Stock Exchange of India

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Authors

Kiran Sharma
University Business School, Punjab University, Punjab, India

Abstract


The aim of this paper is to study investor behaviour, specifically the herd behaviour, in the National Stock Exchange of India. The presence of herding in the Indian securities market has been tested on the daily closing prices of the companies listed on the Nifty50 during the period of 2001-2016. To analyse the data, the data have been collected from the PROWESS database. The present study has been using the methodology given by Christie & Huang (1995). As previous studies showed the presence of herding in the developing economies, the result of the present study shows no significant sign of herding during the period of market stress as a whole in the National Stock Exchange of India. The results of the study indicate the fact that Indian investors are rational, and they do not mimic the actions of others. They used their private information rather than rely on other’s information.

Keywords


Herding, Nifty50, National Stock Exchange.

References