Title: Divergence between economic growth and stock market performance in India: implications for investor education and financial well-being

Authors: Kamakhya Narain Singh; Gaurav Misra

Addresses: Indian Institute of Corporate Affairs, Plot No. 6, 7, 8, Sector 5, IMT Manesar, Gurugram, 122052, India ' Indian Institute of Corporate Affairs, Plot No. 6, 7, 8, Sector 5, IMT Manesar, Gurugram, 122052, India

Abstract: Amidst declining trends of Indian macroeconomic indicators during COVID-19 period, certain indicators, which can be takes as proxies of investors' behaviour, sentiments and biases, were discerned in Indian securities markets. The study provides significant insight into sentiments and biases of a particular segment of retail investors trading in uncertain times of COVID-19, whose investment behaviour may have serious impact on their financial well-being in the long-term. This exploratory-descriptive study uses data collected by various regulators and government sources in India and abroad to evaluate the behaviour of investors in the backdrop of macroeconomic trends during COVID-19. After analysing the trends of investor participation, trading behaviour and general sentiment in the Indian capital markets and evaluating the implications of these investor-related behaviours on the financial well-being of individual investors, a comprehensive and segmented approach of financial literacy has been recommended to safeguard financial well-being of investors.

Keywords: investor biases; financial literacy; COVID-19; macroeconomic indicators; financial well-being; policy recommendations; financial education; financial inclusion; financial behaviour; financial regulators; India.

DOI: 10.1504/IJICBM.2023.130095

International Journal of Indian Culture and Business Management, 2023 Vol.28 No.4, pp.542 - 568

Received: 03 Oct 2021
Accepted: 24 Dec 2021
Published online: 05 Apr 2023 *

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