LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT

Author(s):Simran Agrawal, Dr. Prity Birla

Abstract:This thesis investigates the correlation between investor sentiment and stock market returns on the Nepal Stock Exchange (NEPSE), recognizing the significance of behavioral finance and market psychology in shaping market dynamics. By employing a mixed-methods approach, combining quantitative analysis of historical market data with qualitative inquiries through surveys or interviews, the study aims to evaluate the impact of investor attitude on stock price movements and total market returns in Nepal. Statistical techniques such as regression analysis will be utilized to ascertain the extent to which investor sentiment influences stock market outcomes in NEPSE. The study's findings are expected to illuminate the behavioral factors driving market movements in Nepal, providing valuable insights for investors, policymakers, and market regulators to formulate more informed investment strategies and policies aimed at enhancing market efficiency and stability.

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