Published Paper Details:

The perception of an investor pertaining to capital market can be defined as an investors opinion and attitude towards certain factors which cause fluctuation in the stocks. The primary purpose of this study is to investigate which factors creates an impact on the opinion and attitude of an investor by dividing such factors as internal or external factors to the company & understanding how these factors which formulate the investors perception on stock price fluctuations. In this paper the analysis is conducted by collecting primary data from 152 individual investors of the National Stock Exchange-India. The study also aims to find the relationship between the perception of investors on the most significant internal and external factors with their demographic characteristics. Using descriptive statistics, the paper finds that Earnings of a Company & Performance of the industry are the most significant factors that cause fluctuations in the stock price as per the individual investors. The study also uses cross-sectional analysis & multicollinear regression to ascertain a relationship between the demographic of the investors and the various factors. Analysts emphasize that investor behavior and perception play a vital role in determining the market price of a stock, thus the research is step towards understanding financial behavior of investors in the Indian stock market.