The Influence of Stock Specific Factors on the Sentiment of Equity Investors: Evidence from Indian Stock Market

More the financial markets become ‘peopled,’ more behavioural patterns are observed in individual investors. The individual investor’s attitudes and opinion towards investing must have a significant impact on the stock market. The aim of this study is to analyse the individual Investor’s sentiment and to study the influence of Stock Specific Factors on investors’ sentiment. The investors were administered a Structured Schedule to measure the investors’ sentiment. The impact of Psychological Factors, Past Price Performance, Price Earnings and Familiarity with Products, Price Earnings and Familiarity with Products, Recommendation of the financial community, Expected events surrounding the stock and Book Value, Who else is buying, Quality of Management, Financial Characteristics and Price cut off rules were tested in this study by using the Bootstrapping Method. It is found that the overall Stock Specific Factors did not have much influence on the investors’ sentiment in India during the study period.