Behavioral Finance Proposes That Cognitive Traits of Investors Impact Their Investment Decisions
Which Are Not Always Rational, In Contradiction to Traditional Finance. These Cognitive Traits of Stock
Investors Are Influenced By Their Demographical Profile and the Financial Information That They Receive From
Various Sources Which In Turn Influences Their Stock Investment Decisions. Investors With Similar
Demographic Profile Tend to Follow a Similar Pattern With Regard to Their Investment Behavior Biases. The
Main Objective Is to Study the Factors Influencing the Herding Behavior of Indian Stock Market. Using The
State Space Model, Calculate the Herding Measure Using the Log Cross-Sectional Standard Deviation of Beta
Of the Market Component (Using the Kalman Filter Approach).