© 2021. Nithin Jose, Anjana K & Shalina Abdul Hameed. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org /licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. Global Journal of Management and Business Research: B Economics and Commerce Volume 21 Issue 3 Version 1.0 Year 2021 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Herd Bias in Indian Stock Market under Extreme Market Conditions By Nithin Jose, Anjana K & Shalina Abdul Hameed St. Joseph’s Collegea Abstract- Behavioural Finance is an area that needs to be studied within the context of the Indian stock market to assist investors in making rational investment decisions. This study examines the existence of herding behaviour in the Indian stock market considering various determinants of herd formation such as rising and declining market conditions and extreme market situations. The study is based on 46 companies selected from NSE Nifty 50 index based on their trading period. The methodology applied to validate the presence of herd formation is Cross-Sectional Absolute Deviation (CSAD) method. The results revealed that over the study period of extreme up market condition and high trading volume has shown herding behaviour in the Indian stock market. Keywords: herding behaviour, market efficiency, cross-sectional absolute deviation method (CSAD). GJMBR-B Classification: JEL Code: B26 HerdBiasinIndianStockMarketunderExtremeMarketConditions Strictly as per the compliance and regulations of: