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Abstract

News and information play a pivotal role in how decisions are made. Financial information arising from various platforms influence human behavior and directly influences their investment patterns. Twitter is one such news platform that grabs investor attention and impacts their future decisions. This study aims to find a relation between tweets corresponding to a particular stock and its impact on investor patterns. In addition, we aim to find a possibility of using Google Trends data to predict stock prices and trade volume. This study is carried out in terms of an Indian perspective considering Indian companies and the activity on twitter amongst Indian users. We aim to determine the factors and conditions responsible for causing changes in stock price and trading activity. We also address the limitations to this process considering the possibility of noise trading and the limited users on the twitter platform. An overall conclusion is arrived by finding a correlation between the two and the impact one variable has on the other.