Can Financial News Sentiment Predict Next-Day Price Movement Direction For NSE-Listed Large-Cap Stocks?
Yellayi (2026) studies news sentiment and text signals in equities using a large language model. The abstract mentions an out-of-sample test but not a benchmark, transaction costs, multiple testing or the size of the universe.
“The machine learning model demonstrated strong predictive power on unseen 2025 data, peaking at a 60.00% directional accuracy for both HINDUNILVR and ULTRACEMCO, and a 55.56% accuracy with a 60.00% Precision Score for INFY.”
AssetEquities
StrategyNews sentiment
TechniqueLarge language modeltransformer
GeographyGlobalIndia
Also stated: Daily, Text and news, out-of-sample test
Missing from abstract: benchmark, costs, multiple testing, universe
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The paper's neighbourhoodNews sentiment and text signals by year
FamilyNews sentiment and text signals148Momentum and trend following289Factor investing240Machine learning return prediction15318 more · 854
AssetEquities97
The family is counted across the whole universe. Asset, method and authors are counted inside the family.
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