Herd Behaviour in Indian Gold Futures Market among Retail Traders

Abstract

This study aims to investigate the extent and Type of herding among Retail traders in Gold Futures Market of India. It also focuses on factors influencing the extent of herding among Retail Traders in Gold Futures Market of India. The literature review highlights the existing research on Herding in India and identifies a research gap concerning the extent of herding and type of herding in the Indian Gold Futures Market. The objectives of the research include studying the extent of herding among Retail Traders in a different class of asset Gold Futures in commodity market of India, exploring the extent of herding based on SocioDemographic factors of the Retail Traders and with the Treatment of Information by the Retail traders, the type of herding observed among the traders. It also explores factors influencing herding among Retail Traders in Gold Futures Market. The study utilizes an exploratory research methodology, including random sampling techniques and both primary and secondary data sources. The findings of this study will provide insights into the Retail Traders behavior and contribute to the existing literature on herding. The results can be utilized by policymakers, financial institutions, and investment professionals to develop strategies that prevent herding among Retail Traders in Gold Futures Market. Ultimately, the study aims to support the economic growth and development of Gold Futures Market by understanding the role of different factors that influence herding among Retail traders. Findings of the study also reveals both Internal and External factors have a effect on herd behaviour among Retail Traders.