Volume 18, No. 2, 2021
Impact of herding on the ESG sector of Indian Stock market
Gauri R Papade , Dr. SomNath Paul , Ravish Kukreti
Abstract
Purpose- Testimonial of herd behaviour has been conducted on the basis of NSE primary respondents of Indian markets. Design/methodology/ approach- The paper exemplifies the observation by applying the crosssectional standard deviation method and promulgating on herding among participants who are involved in trading in the Indian stock market (NSE). Further, the study seeks to examine the market-wide herding in the Indian stock market with help of observations of Nifty 50 stock and Nifty 100, of 853 Daily returns for a time- period of three years and six months from January1, 2019 to June 3, 2022, duration of the normal market condition, extreme (Panic) market conditions across five sectors of market. Findings – In a time-period of a observed different market cycles, the results which came out are exhibited that herd behaviour is unsubstantiated in observation of both market condition of examined sectors of Indian stock market. Originality/ Value- The analysis reveals that there is no evidence of herding in the observed sectors of Indian stock market. For both duration extreme (panic) market condition and normal market condition both. It highlights that the investor of the respective sectors are rational during, extreme and normal market condition. The study contributes by usage of different statistical tests to determine the herding and stock returns.
Pages: 2137-2147
Keywords: Herd Behaviour, Indian Stock Market, ESG Sector, COVID-19.