Noise of Investors’ Attention Mania in the 21st Century Indian Stock Markets

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Paritosh Chandra Sinha


This paper characterises neoclassical investors as behavioral listeners rather than rational activists in their choices of attention searches online. It proposes that investors’ attention search is distributed at three different attention layers - focused, selective, and homogenized attention layers. It employs three sets of attention attributes on economics, politics, and political party and personality, and empirically, examines if attention search keywords at different attention layers have attention impacts on the NSE Nifty and BSE Sensex market returns. At group-wise attention attributes, the paper shows that investors’ attention impacts are scattered over attributes and related to economics, politics, and political parties and personalities. With the ARDL models, at economic attributes, it finds local vis-à-vis global attention impacts and the presence of familiarity bias on both stock markets’ returns, and the noise of “investors’ attention mania” (IAM) at the other sets of attention attributes. Furthermore, these effects vary across different attention layers.


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How to Cite
Paritosh Chandra Sinha. (2021). Noise of Investors’ Attention Mania in the 21st Century Indian Stock Markets. Ramanujan International Journal of Business and Research, 6, 87–121.
Author Biography

Paritosh Chandra Sinha, Rabindra Mahavidyalaya

DR PARITOSH CHANDRA SINHA has research interest in the macro-economic and micro-economic problems like the demonetisation in India and European sovereign debt crisis. Dr Sinha, an earlier UGC Minor Research Project fellow on Behavioral Finance and an Assistant Professor in Commerce presently, is the Assistant Editor in the International Journal of Banking, Insurance and Risk. He has been awarded with doctoral degree from the University of Burdwan in 2013 on Dynamics of Corporate Capital Structure Decisions. His other research interests are Equilibrium Pricing, Noise in Financial Markets, and Risk Management in the financial assets, Harmonization in Accounting Practices, and Sample Size Determination in Auditing. His research publications are in various national and international journals and his international seminar presentations are in the ICBF, 2008 and 2009 at IBS Hyderabad; and the CERE, 2012 and 2013 at IIM, Indore, and IMI Bhubaneswar, 2015. He has received the best paper awards at the CERE, 2012; IMI Bhubaneswar, 2015; and SKBU, West Bengal, 2020.