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Significance of Social Networking Media for Influencing the Investor Behaviour in Stock Market

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Digital India

Part of the book series: Advances in Theory and Practice of Emerging Markets ((ATPEM))

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Abstract

The new source of power is not money in the hands of few but information in the hands of many.– John Naisbitt

Digital technology and businesses are becoming inextricably interwoven. Digital literacy is the ability to use the innovative technology to navigate, evaluate and create information. This paper aims to highlight the prominence and significance of social networking media like Twitter, Google Trends, Yahoo Finance, etc., for enhancing the investor knowledge and influencing the investor behaviour in Indian financial market, i.e. the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Previous literature and many research works were analysed which depicted the adoption of these innovative methodologies for market prediction and making future investments by developed nations like the United States, China, etc. The analysis of such past time studies glorified the existence of correlation amongst the posts on Twitter, StockTwits, Google Trends, etc., with price prediction of stocks listed on the Dow Jones, NASDAQ and S&P 500 in US financial market by influencing the sentiments of the investors proposing scope for Indian investors. Thus, in this research work, we elaborated the importance of adoption for these innovative social networking media by current and prospective Indian investors for understanding stock volatility and increased price prediction capabilities.

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Kaur, M., Kalra, T., Malik, S., Kapoor, A. (2018). Significance of Social Networking Media for Influencing the Investor Behaviour in Stock Market. In: Kar, A., Sinha, S., Gupta, M. (eds) Digital India. Advances in Theory and Practice of Emerging Markets. Springer, Cham. https://doi.org/10.1007/978-3-319-78378-9_5

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