International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 2 (March-April 2026) Submit your research before last 3 days of April to publish your research paper in the issue of March-April.

Psychological and Economic Determinants of Investment Decision-making in the Indian Stock Market: the Role of Risk Perception

Author(s) Tajindra kaur, Dr. Amitabha Maheshwari
Country India
Abstract There are a lot of economic and psychological factors that impact the choices that investors in the Indian stock market make, with risk perception being one of the most important factors. According to the findings of this study, the emotional affects, cognitive biases, risk tolerance, and cognitive biases of investors interact with market conditions, financial literacy, and interest rates to influence the behavior of investors. The research makes use of the behavioural finance theory in order to demonstrate how certain psychological factors, such as aversion to loss and herd mentality, may cause individuals to make choices that are not rational. In the essay, the subject is explored in further depth, with an investigation of the ways in which investors' perceptions of risk impact their decision-making. Incorporating economic information with survey data from Indian investors, the study investigates the intricate link that exists between investor psychology and the circumstances of the economy. According to the findings, the decisions that are made about investments are significantly influenced by both psychological dispositions and economic circumstances. Risk perception, on the other hand, is an essential moderating factor in this connection. This research aims to improve investment performance by addressing behavioural biases and risk-related attitudes. The findings of this study have significant consequences for the formulation of public policy, the provision of advisory services, and the education of financial professionals.
Keywords Behavioural finance, Indian stock market, economic considerations, psychological influences, risk perception, and investment decision-making
Published In Volume 8, Issue 1, January-February 2026
Published On 2026-02-16

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