Herding Behavior in Indian Stock Markets During COVID-19

Authors

DOI:

https://doi.org/10.17010/ijrcm/2026/v13i1/176059

Keywords:

herding, COVID-19, cross-sectional absolute deviation (CSAD), quantile regression (QR).
JEL Classification Codes :C22, C32, G10
Publishing Chronology: Paper Submission Date : April 10, 2026 ; Paper sent back for Revision : May 15, 2026 ; Paper Acceptance Date : May 25, 2026

Abstract

Purpose : The study investigated the effect of one of the behavioral biases – herding – on the Indian Stock Markets during the spread of COVID-19. Herding was a linked behavior in which investors concealed their personal knowledge and opinions while copying and following the decisions of other investors.

Design/Methodology : The study incorporated the impact of market turnover, volume, and volatility on herding in the Indian stock markets by using cross-sectional absolute deviation (CSAD) and quantile regression (QR) at different quantiles for the time period March 1, 2019, to December 31, 2021.

Findings : The findings represented the results of CSAD and QR at different quantiles (0.5, 0.75, and 0.9). The markets reported the presence of herding during the period of the Pandemic with negative coefficients of CSAD. The results of QR also reported the presence of herding in the Indian stock markets at higher quantiles. Volatility reflected a negative and significant relationship with CSAD, indicating the presence of herding with increased levels of volatility in the markets.

Originality/Value : The study tried to capture the presence of herding behavior among investors during the COVID-19 pandemic in the Indian stock market and investigated the impact of volume, turnover, and volatility on herding.

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Published

2026-06-15

How to Cite

Patel, P. P. (2026). Herding Behavior in Indian Stock Markets During COVID-19. Indian Journal of Research in Capital Markets, 13(1), 73–88. https://doi.org/10.17010/ijrcm/2026/v13i1/176059

Issue

Volume 13, Issue 1, January-June 2026

Section

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