Sentiment Analysis for Indian Stock Market Prediction Using Sensex and Nifty

TLDR

Internet‑based technologies such as cloud computing, big data analytics, and sentiment analysis have transformed the Indian stock market by removing broker and geographic barriers and enabling investors to predict market movements. The study aims to predict the price movements of the Sensex and Nifty indices using sentiment analysis. The authors evaluate the importance of sentiment analysis for these indices as a forecasting tool. The study concludes with recommendations for future work.

Abstract

From the last twenty years, the application of Internet based technologies had brought a significant impact on the Indian stock market. Use of the Internet has eliminated the barriers of brokers and geographical location because now investors can buy and sell their shares by accessing the stock market status from anywhere at any time. Before investing money, it is very important for investors to predict the stock market. In today's digital world Internet based technologies such as Cloud Computing, Big Data analytics, and Sentiment analysis have changed the way we do business. Sentiment analysis or opinion mining makes use of text mining, natural language processing (NLP), in order to identify and extract the subjective content by analyzing user's opinion, evaluation, sentiments, attitudes and emotions. In this research work importance of sentiment analysis for stock market indicators such as Sensex and Nifty has been done to predict the price of stock. Finally, we draw conclusions and provide suggestions for future work.