A Study on, Trends in Stock Market Awareness and Participation Among Indian College Students: A Secondary Data Analysis

Abstract

The present study examines emerging trends in stock market awareness and participation among Indian college students using exclusively secondary data. Recent years have witnessed a notable expansion in youth commitment with equity markets, supported by increased digital access, widespread adoption of mobile trading platforms, and greater visibility of financial information online (NSE, 2023; BSE, 2022). Monitoring reports suggest that while basic awareness of investment avenues is steadily improving, deeper conceptual understanding of risk, diversification, and regulatory frameworks remains limited among young adults (SEBI, 2020; SEBI, 2023). Findings from previous academic studies further indicate that participation by college students is often influenced by peer groups, social media content, and FinTech interfaces rather than structured financial education (Sharma & Jain, 2021; Verma, 2022). This analysis highlights a growing gap between rising enthusiasm for participation and insufficient financial literacy, a trend also noted in national financial literacy assessments (RBI, 2022). The study concludes that targeted investor learning programmes, curriculum-level interventions, and improved oversight of digital financial communication are necessary to promote informed and sustainable investment behaviour among India’s youth.

Introduction

This study examines stock market awareness and participation among Indian college students in the context of rapid digitalisation and rising youth involvement in financial markets. Over the past decade, India has seen a sharp increase in retail investors aged 18–25, driven by mobile trading apps, low-cost brokerage models, widespread internet access, and the growing influence of social media. College students are increasingly entering the stock market earlier than previous generations, making their financial behaviour crucial for the future stability and depth of India’s capital markets.

Secondary data from regulatory bodies (SEBI, RBI), stock exchanges (NSE, BSE), academic literature, and industry reports reveal that while basic awareness of stock market instruments (shares, mutual funds, SIPs, demat accounts) has improved significantly, deeper financial literacy remains weak. Many students lack understanding of critical concepts such as risk–return trade-offs, diversification, taxation, inflation, and regulatory safeguards. As a result, there is a clear gap between awareness and informed participation.

Youth participation in the stock market has increased markedly, especially after the COVID-19 pandemic, but this participation is often shallow and speculative. Students typically invest small amounts, focus on short-term or trend-driven trading, and rely heavily on peer influence and online information rather than structured analysis or long-term planning. Behavioural finance research highlights the prevalence of biases such as overconfidence, herd behaviour, and impulsive decision-making among this group.

Digital trading platforms have played a pivotal role by reducing entry barriers through user-friendly interfaces, low fees, and gamified features. While these platforms enhance accessibility, they may also encourage frequent trading and emotional decisions among inexperienced investors. Social media further shapes student perceptions by providing simplified and influencer-driven investment content, which increases engagement but also raises risks of misinformation and unregulated advice.

The study identifies a major research gap in student-specific analysis and addresses it through a comprehensive secondary-data-based approach. Overall, findings indicate a dual trend of rising interest and participation alongside inadequate financial preparedness. The study underscores the urgent need for structured financial education in higher education institutions, better regulation of digital financial content, and collaborative efforts between educators and regulators to promote informed, responsible, and sustainable investing among college students.

Conclusion

The analysis of secondary data demonstrates that stock market awareness and participation among Indian college students have grown considerably in recent years, driven largely by digitalisation, increased internet penetration, and greater exposure to financial content across online platforms. Students today display notably higher familiarity with basic investment avenues and exhibit growing enthusiasm toward equity markets, reflecting a shift toward more active financial engagement among young adults (SEBI, 2023; NSE, 2023). This trend represents an important transformation in India’s investment landscape, as younger investors become an increasingly significant segment of the retail investor base. However, the evidence also reveals that this surge in participation is not matched by a proportionate improvement in financial literacy. Despite increased accessibility, many students continue to lack the conceptual and analytical skills necessary for informed investment decision-making. Their reliance on social media, peer influence, and digital trading interfaces—rather than structured financial education—heightens vulnerability to speculative behaviour, misinformation, and behavioural biases such as overconfidence and herd mentality (Sharma & Jain, 2021; Barberis, 2018). As a result, while youth participation is expanding, it is often characterised by short-termism and limited understanding of risk management. Overall, the findings highlight a clear need for integrating comprehensive financial literacy initiatives within higher education and enhancing regulatory oversight of digital financial content. Universities, policymakers, and regulatory bodies such as SEBI and RBI must work collaboratively to develop targeted programmes that equip students with essential financial competencies and promote responsible, long-term investing. Strengthening financial education and providing credible information channels will ensure that the growing interest in stock market participation among college students translates into informed, sustainable, and economically beneficial financial behaviour.

References

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Copyright

Copyright © 2026 Mr. Kunal N. Kevat, Dr. Pratik K. Pastagiya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.