Understanding the Impact of News Articles on the Movement of Market Index: A Case on Nifty 50
This addresses a gap in financial analysis for investors by showing that diverse news topics influence market indices, though it is incremental as it builds on prior sentiment analysis work.
The study tackled the problem of predicting stock market index movements by analyzing how news sentiment across various topics (e.g., sports, politics) affects the Nifty 50 index, finding that sentiment scores from non-market topics significantly impact index movements.
In the recent past, there were several works on the prediction of stock price using different methods. Sentiment analysis of news and tweets and relating them to the movement of stock prices have already been explored. But, when we talk about the news, there can be several topics such as politics, markets, sports etc. It was observed that most of the prior analyses dealt with news or comments associated with particular stock prices only or the researchers dealt with overall sentiment scores only. However, it is quite possible that different topics having different levels of impact on the movement of the stock price or an index. The current study focused on bridging this gap by analysing the movement of Nifty 50 index with respect to the sentiments associated with news items related to various different topic such as sports, politics, markets etc. The study established that sentiment scores of news items of different other topics also have a significant impact on the movement of the index.