Impact of Investor Sentiment on Portfolio Return - Do Economic and Market Conditions Matter?

In a first of its kind, this paper tries to explore the relationship between investors sentiment and BSE Sensex return over period January 2010 December 2021 under different market economic conditions. Design/Methodology/Approach: The uses 32 macroeconomic variables as proxy investor sentiment. Principal component analysis has been used 11 principal components with eigenvalue more than 1, have selected create sub-indices. Weighted/generalized least squares (GLS) method achieve objectives study. Findings: We find that impact was significantly positive on portfolio Furter, slope fivesentiment sub-indices increased in boom two bull period. Research Implications: Findings study are helpful for retail investors, policy makers other decision Indian stock market. Results guidelines making and; also, they learn about association Originality/Value: contributes existing literature by exploring marketover