• Dr. Ajoy Mitra

This study examines the behavioral dynamics that influence investor decision-making in the northeastern region of India, with a special focus on Assam, Meghalaya, and Tripura. Rooted in the principles of behavioral finance, the research explores how cognitive biases, emotional tendencies, and varying levels of financial literacy shape investment preferences among retail investors. Using data collected from 420 respondents across seven states—Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura—this paper evaluates the influence of factors such as overconfidence, herding, loss aversion, and financial literacy on participation in the Indian stock market. The findings reveal that overconfidence and herding behaviors dominate investment choices in relatively literate regions like Assam and Meghalaya, while loss aversion and financial conservatism are stronger in Mizoram and Nagaland. Regression results suggest that financial literacy significantly predicts investment participation (β = 0.53, p < 0.05), whereas emotional biases negatively influence long-term investment holding periods. The paper concludes that targeted financial literacy programs, regional awareness drives, and behavioral interventions can strengthen investor confidence and enhance stock market participation in Northeast India.

Behavioral Finance, Investor Psychology, Financial Literacy, Overconfidence, Herding, Loss Aversion, Northeast India, Stock Market Behavior

"Investor Behavior and Financial Decision-Making in Northeast India: Evidence from the Indian Stock Market", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 10, page no.i540-i547, july-2024, Available :http://www.jetir.org/papers/JETIR2407856.pdf

"Investor Behavior and Financial Decision-Making in Northeast India: Evidence from the Indian Stock Market", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 10, page no. ppi540-i547, july-2024, Available at : http://www.jetir.org/papers/JETIR2407856.pdf