The Influence of Social Media on Investment Decision-Making of Retail Investors in India

Dr.Sonali Nandu

Shree L R Tiwari Degree College of Arts Science & Commerce

Abstract : The expansion of social media has profoundly altered the way retail investors obtain financial information and make investment decisions, particularly in emerging economies such as India. Digital platforms including YouTube, Twitter (X), Telegram, and Reddit now function as informal financial information channels where market opinions, stock tips, and trading strategies are widely exchanged. This study investigates the extent to which social media impacts the decision-making behavior of Indian retail investors. A descriptive and analytical research approach was adopted, using primary data collected through a structured questionnaire and secondary data sourced from scholarly literature and regulatory publications. The findings reveal that social media significantly shapes investor sentiment, influences buying behavior, and promotes herd mentality, while simultaneously raising concerns about misinformation and speculative trading. The study offers valuable insights for investors, regulators, and researchers by highlighting the need for responsible digital engagement and enhanced financial literacy.

Keywords: Social Media, Retail Investors, Investment Behaviour, Behavioral Finance, Investor Sentiment, India