#Demonetization and its impact on the indian economy – Insights from social media analytics

Abstract

In recent times, twitter has emerged as a central site where people express their views and opinions on happenings surrounding their lives. This paper tries to study the general public sentiment surrounding a major breakthrough event for the Indian economy i.e. demonetization by capturing 1,44,497 tweets about demonetization. The paper also tries to find the impact of demonetization on various sectors of the economy and whether there exists any correlation between the public sentiments expressed over twitter and the stock market performance of Nifty 50 companies. The industries were classified into cash dependent and independent sectors and the impact on both were separately studied. It was found there exists no significant correlation between the sentiments expressed over twitter about demonetization and the performance of various sectors in the economy and twitter sentiments alone do not necessarily predict the performance of financial market.