Transformer-Based Sentiment, Alpha Decay, and Market Efficiency: Evidence from the NIFTY 50 in the Era of Democratised AI (2024-2025)
News sentiment and text signals in equities over 2024–2025, studied by Maheswari in 2026 with a large language model. The abstract mentions alpha, a benchmark and transaction costs but not an out-of-sample test, multiple testing or the size of the universe.
“This paper tests whether transformer-based natural language processing (NLP) signals generate exploitable alpha in the NIFTY 50-India's benchmark equity index-using a real, two-year corpus of 73,118 financial news headlines from 600+ media outlets spanning January 2024 to December 2025.”
AssetEquitiesindices
StrategyNews sentiment
TechniqueLarge language modeltransformer
GeographyIndia
Also stated: Daily, 2024–2025, Alpha, Text and news, benchmark, costs
Missing from abstract: out-of-sample test, 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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