Decision Making Pattern in Equity Market -An Economic Analysis

Abstract

In this paper, an attempt was made to study the decision making patterns in Indian equitymarkets through economic analysis.This paper tried to examine socio-economic factors like, age,income, employment status, annual savings, tradingfrequency and investment experience of the respondents.The study is confined to equity market and Chennai city of Tamil Nadu only. Multistage random sampling method was adopted to collect the data. The primary data was collected from 406 respondents. Statistical tools such as frequency distribution, factor analysis, cluster analysis and chi-square test were used for analyzing data by using SPSS package. Out of 406 respondents 163 (40.1%) respondents are highly influenced, 131 (32.3%) respondents are moderately influenced and112 (27.6%) respondents are less influenced with regard to economic factor towards equityinvestment.Out of eight statements, “I will refer to market price movement or current price” has secured high score (0.910) pertaining to economic factor towards investors’ investment decision making pattern. Only two socio-economic variables namely age and type of family have significant association with economic analysis which influence the decision making style of equity investors.