The Investment Behaviour with Overconfidence Bias: Impact on Volume and Volatility in Indian Stock Market
South Asian Journal of Social Studies and Economics · pp. 13–24 · Published 3 Oct 2025
10.9734/sajsse/2025/v22i101171Abstract
The study conducts an empirical investigation in a VAR environment from 1st January 2015 to 31st December 2022 to analyze the market wide overconfidence bias in the Indian stock market using daily observations of NSE Nifty50 and BSE SENSEX. The study attempts to investigate the presence of overconfidence bias in pre and post covid-19 periods and its impact on Indian stock market (ISM). The results show that the positive impact of past market returns on current turnover in the market is significant in post COVID-19 period and we do not find any lead-lag relationship in the pre COVID-19 phase. The market volatility used as the measure for market risk impacts market turnover significantly in the sub-samples. The study indicates that Indian investors are ill-informed about any market return movement and market turnover during COVID-19 period indicating overconfident (optimistic) behaviour of the investor. The continuous learning about market trends, investment strategies, and behavioural biases may help investors recognize the bias while making financial decision.
Cited by 0
No indexed citations yet.
Related research
- COVID 19 Disease Caused by Coronavirus 2 (SARS-CoV-2) (Severe Acute Respiratory Syndrome) — shares topic coverage
- Assessment of Anxiety in Healthcare Providers Working in ICU during COVID-19 Pandemics — shares topic coverage
- Azithromycin and Hydroxychloroquine Accelerate Recovery of Outpatients with Mild/Moderate COVID-19 — shares topic coverage
- Elevated Levels of Lactate Dehydrogenase Predicts Poor Outcomes for Patients with COVID-19: A Review — shares topic coverage
- Addressing the Challenges of Containing Covid-19 Spread in a Rural, Poor Area in India: A Case Study — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.