Abstract
Indian stock market has seen so many changes during last two decades. The role of behavioural finance has also emerged in the last few years. Thus, keeping in view the importance of behavioral finance the impact of noise trading has been checked. The present study is conducted to examine the impact of noise trading on volatility of Indian stock market specifically in equity market and has considered Nifty 50, Nifty 100 and Nifty 100 Liquid 15 indices of NSE (National Stock Exchange) for a period of approximately a decade, i.e., January 2007 to December 2017. For the alleged purpose, a total of 2501 daily observations of closing value of banking companies of Nifty 50 have been considered for all empirical tests for the study period. GARCH model has been applied to study the impact of noise trading on banking stocks of Nifty 50. The results indicate that the behaviour is not found to be same for all the companies. These results will be helpful for traders in identifying the stocks which are popular among the noise traders. The price movement in these stocks is not efficient due to the involvement of noise traders.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Research Journal of Humanities and Social Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
