• V. LAKSHMI
• CH. VASAVI
• M. RAJASEKHAR

Investor sentiment is a powerful non-fundamental driver of short-run stock price movements and volatility. This study investigates how investor sentiment in India influences stock market volatility and the consequent effects on investor choice of investment strategies. Using a mixed-methods approach - a structured questionnaire (primary data, n = 340) combined with secondary market volatility measures (historical NIFTY returns and VIX proxies) -the paper explores psychological determinants of trading behaviour, the relationship between sentiment and measured volatility, and strategy preferences during high and low sentiment states. Analysis includes percentage distributions, cross-tabulations, and correlation tests. Results show a strong positive relationship between bullish sentiment and short-term volatility, widespread use of momentum and stop-loss strategies during high sentiment periods, and a clear demand for investor education. Policy and practical implications concern investor protection, behavioural finance education, and improved disclosure by intermediaries.

Investor Sentiment and Stock Market Volatility in India: A Psychological and Empirical Analysis of Investment Strategies

"Investor Sentiment and Stock Market Volatility in India: A Psychological and Empirical Analysis of Investment Strategies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 9, page no.d708-d717, September-2025, Available :http://www.jetir.org/papers/JETIR2509392.pdf

"Investor Sentiment and Stock Market Volatility in India: A Psychological and Empirical Analysis of Investment Strategies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 9, page no. ppd708-d717, September-2025, Available at : http://www.jetir.org/papers/JETIR2509392.pdf