1B. Chibbymuthu, 2P. Vinayagamurthy
1 Ph.D Research scholar, Department of Sociology and Social Work, Annamalai University.
2Assistant professor, Department of Sociology and Social Work, Annamalai University.
DOI : https://doi.org/10.47191/ijmra/v8-i03-57Google Scholar Download Pdf
ABSTRACT:
The stock market, an integral volatile component of the global economy, significantly influences both economic prosperity and individual psychological well-being. Investor sentiment, underpinned by emotional and collective dynamics, drives market fluctuations, manifesting patterns reminiscent of Émile Durkheim’s sociological theory of mechanical and organic solidarity. This research investigates the sociological and psychological consequences of financial market volatility, specifically exploring how collective investor sentiment leads to financial alienation, normlessness (anomie), and, ultimately, psychological distress among investors. By examining historical and contemporary cases including detailed analyses of suicides linked to severe financial losses in India this paper highlights the profound psychological impact of market downturns. Financial crises, marked by abrupt market corrections, disrupt not only economic stability but also dismantle investors' social identities and self-worth, intensifying alienation and despair. The analysis of individual case studies underscores critical patterns, such as the absence of robust social support systems, financial literacy, and stigma surrounding financial failure, which exacerbate the negative psychological effects of financial distress. Furthermore, the research establishes a clear linkage between economic downturns, heightened psychological distress, and increased suicide rates, reflecting Durkheim’s concept of anomic suicide. It concludes by emphasizing the urgent need for structural interventions—including enhanced financial literacy, mental health counselling services, and destigmatization efforts—to mitigate these severe psychological impacts, promote economic stability, and safeguard investor well-being within increasingly volatile global financial markets.
KEYWORDS:Stock Market, Investor Sentiment, Financial Alienation, Anomie, Psychological Distress, Suicide.
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Volume 08 Issue 03 March 2025
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