Significance of Market and Economic Factors in Stock Investors Decision Making – A Study on Indian Stock Market

Abstract

Market and economic factors play a crucial role in the decision-making process for investments. Smart investors carefully analyze many indicators and trends in order to identify the most lucrative opportunities. This article analyses the impact of economic conditions on investment decisions and provides valuable insights for investors aiming to make educated choices. The present study employs a single method of quantitative analysis. A sample size of 100 respondents was determined using the Kregcie-Morgan table, with a margin of error of 7.5%. In order to compensate for those who did not respond, 200 questionnaires were handed out, and 155 of them were considered appropriate for the study. The sampling was conducted utilizing convenience sampling. The decision to use convenience sampling was based on its ability to efficiently and easily collect data from stock investors in Bengaluru city. A meticulously designed questionnaire was created by using insights from prior research on market aspects, economic considerations, and investment decisions. The data was analyzed using factor analysis in SPSS and confirmatory factor analysis in AMOS software. The results demonstrated that Market and Economic factors exert a substantial impact on the process of making investment decisions. Investors carefully analyze data such as GDP growth rates, interest rates, inflation, and political stability to identify profitable opportunities. Investors can enhance their investment decision-making and mitigate potential risks by understanding the impact of Market and economic conditions. Irrespective of one's level of experience in investing, it is essential to consider Market and economic factors when building a lucrative investment portfolio.