Can Google Trend Search Predict Stock Market? Evidence From Bse

Behavioural Finance find that stock markets across the world can be driven by a person's emotional reactions to business changes. In recent surveys, social media has been measured in terms of its utility in measuring financial market movements. This paper aims to evaluate these results by Google Trends. A quantitative method to investigate the relationship between Google search patterns and the stock indexes has been tried in the analysis to determine the strength of Sensex. This analysis has been based on a secondary sequence, covering the time frame from 01.01.2015 to 31.12.2020. The descriptive statistics findings showed that the data on Google and the stock market index were normally distributed. The correlation analysis showed that there was a positive relationship between the variables, namely, Google search and stock index. The results of the analysis were considered to be useful to the investors and other participants of stock market, by understanding the influence of Google Trends Search on the stock market. Keywords Stock index; Stock Volume; Stock Volatility; Google Trends Search