IMPACT OF ARTIFICIAL INTELLIGENCE ON THE INDIAN STOCK MARKET
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Artificial Intelligence (AI) has emerged as a transformative force across diverse sectors, with financial markets witnessing some of its most profound applications. This systematic review examines the multifaceted impact of AI on the Indian stock market over the decade spanning 2015 to 2025. Drawing upon peer-reviewed journal articles, conference proceedings, and reputed working papers, this paper synthesizes findings from over forty studies to provide a comprehensive understanding of how machine learning, deep learning, natural language processing (NLP), and algorithmic trading have reshaped market dynamics in India. The review identifies five primary thematic domains: stock price prediction, algorithmic and high-frequency trading, sentiment analysis, risk management, and regulatory challenges. Findings reveal that AI- driven models, particularly Long Short-Term Memory (LSTM) networks, transformer-based architectures, and ensemble methods, consistently outperform traditional statistical approaches in forecasting BSE Sensex and NSE Nifty 50 movements. Simultaneously, the proliferation of algorithmic trading has elevated market efficiency while raising concerns about flash crashes and systemic risk. The paper further highlights the growing role of AI in democratizing investment access through robo-advisors and fintech platforms. Regulatory frameworks by SEBI are found to be evolving but remain nascent relative to the pace of technological adoption. The review concludes with research gaps and future directions, underscoring the need for explainable AI and robust governance in Indian capital markets.
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Bhatia, T. (2026). Impact of Artificial Intelligence on the Indian Stock Market. International Journal of Science, Strategic Management and Technology, 02(05). https://doi.org/10.55041/ijsmt.v2i5.449
Bhatia, Tarun. "Impact of Artificial Intelligence on the Indian Stock Market." International Journal of Science, Strategic Management and Technology, vol. 02, no. 05, 2026, pp. . doi:https://doi.org/10.55041/ijsmt.v2i5.449.
Bhatia, Tarun. "Impact of Artificial Intelligence on the Indian Stock Market." International Journal of Science, Strategic Management and Technology 02, no. 05 (2026). https://doi.org/https://doi.org/10.55041/ijsmt.v2i5.449.
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