Factors Influencing Investment Decisions In Indian Stock Market

Abstract

This research paper is an attempt to understand the relationship between factors that influences the investors decisions in the stock market. For this purpose, the data is gathered from young and active stock market investors using convenient sampling technique. Hypotheses are tested using t-test, Factor Analysis is used for analysis of results. It is evident that company related factors referred to as Microeconomic variables is one of the latent variables that includes many sub-variables. Country related factors referred to Macroeconomic variablesis another latent variable that includes many sub-variables are considered by the investors before making the investments in the stock market. Finding suggest that, these sub-variables are highly correlated with each other. Investors also considers valuation ratios of the company and government stability as important factors for making investment decision.