MUMBAI, India, Aug. 17 -- Intellectual Property India has published a patent application (202641096685 A) filed by St. Joseph'S Institute Of Technology; Nandida G; Sharon Sifana; and Priya Sethuraman on August 11, 2026, for Impact Of News Sentiment Analytics On Stock Returns: Evidence From Selected Indian Companies.
Inventors include St. Joseph'S Institute Of Technology; Nandida G; Sharon Sifana; and Priya Sethuraman.
The application for the patent was published on August 14, 2026, under issue no. 33/2026.
Abstract: This study examines the impact of news-based sentiment on the stock returns of major Indian companies across multiple sectors during the period from 1 January 2025 to 31 December 2025. News headlines were collected from aggregated financial media sources using Google News RSS, ensuring multi-source coverage and minimizing single-source bias. Firm-level sentiment was extracted from company-specific headlines, while market-level sentiment was derived from broader business and economic news. Sentiment scores were computed using the VADER (Valence Aware Dictionary and Sentiment Reasoner) approach and aggregated into daily sentiment indices. These sentiment measures were merged with daily stock return data for selected large-cap Indian firms representing the IT, banking, automobile, energy, and electronics sectors. Using Ordinary Least Squares (OLS) regression and distributed lag models, the study investigates both contemporaneous and lagged effects of sentiment on stock returns. The empirical findings indicate that firm-specific sentiment significantly influences daily returns, with evidence of immediate market reaction followed by partial short-term reversal. In contrast, market-wide sentiment exhibits comparatively weaker effects. The results support behavioral finance theories suggesting short-term overreaction to news and highlight the importance of firm-level information in price formation within the Indian equity market.
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