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IMPACT OF SOCIAL MEDIA INFLUENCERS ON THE INDIAN EQUITY MARKET: A NETWORK AND SENTIMENT ANALYSIS APPROACH

Paper Number :WP40/2024
Publication Date :April 15, 2024


The paper traces the interlinkages between influencers and their followers on social media using network analysis. It first identifies the financial community and its hierarchies: influencers, waves and novices. Furthermore, it explores the impact of influencers on followers and vice versa, and impact of the tweet features of each hierarchy on market features. We find that while that social media influence is impacted by quality of their forecasts. Interesting the followers also impact the sentiment of influencers. Bullishness and better-quality forecasts reduce heterogeneity in market movement and traded volumes, while agreement amongst the financial community leads increased volatility. Better forecasts from influencers and waves are associated with positive market returns and reduced volatility.