Published Paper Details:

This research paper examines the transformation in retail investor behaviour due to the unparalleled rise of digital technology and social media in modern India. At over 150 million, the number of demat accounts has surged, with the average age of new investors plummeting as more young people join, mainly those below 35 years of age, who invest through mobile applications and social media platforms. The paper assesses the role of Instagram, YouTube, and Telegram in influencing investment decisions, creating phenomena such as FOMO and herding, which further lead to speculative trading. Although the enthusiasm of young investors has helped make the market more confident during declining trends, the paper also highlights the perils of options trading and the high percentage of retail traders incurring losses. Based on these findings, the study puts forward actionable recommendations to improve financial literacy and encourage responsible trading among the young and new investors. This paper seeks to find an appropriate balance between tapping the potential of the digital natives in the Indian stock market while reducing the risks involved with speculation.