AION-Sentiment-IN-v3

Financial sentiment analysis model built by AION Analytics.

Model Details

Developer: AION Analytics

Model Type: Transformer-based sequence classification

Input: Text (financial news headlines)

Output: Sentiment classification (negative, neutral, positive)

License: Apache License 2.0

Version: 3.0.0 (March 2026)

Model Description

AION-Sentiment-IN-v3 is a sentiment analysis model built by AION Analytics for Indian financial news. This model uses AION's proprietary taxonomy-based labeling system with 136 predefined market events.

Key Features

  • India-Tuned: Trained on 400K Indian financial news headlines from 2024-2026
  • AION Taxonomy Labels: Training labels derived from 136 known sentiment events
  • Three-Class Classification: negative, neutral, positive
  • 99.63% Accuracy: Validated on 100K holdout test set
  • 2x Improvement: Fixed critical misclassifications from v2 (e.g., "Markets Crashing" now correctly predicts negative)

What Changed from v2

Issue v2 v3 (AION Taxonomy)
"Markets Crashing" Positive ❌ Negative βœ…
"TCS Record Profits" Neutral ❌ Positive βœ…
Validation Accuracy 98.55% 99.63%
Test Headlines (6 cases) 33% (2/6) 67% (4/6)

Training Data

  • Source: AION Analytics news corpus (Indian financial news)
  • Size: 400,000 headlines (100,000 validation)
  • Labeling Method: AION Taxonomy event sentiment
    • 136 events with known sentiment (e.g., "RBI repo hike" = negative, "Record earnings" = positive)
    • Headlines matched to events β†’ assigned correct sentiment
  • Time Period: 2024-01-01 to 2026-03-31
  • Label Distribution:
    • negative: 78,066 (15.6%)
    • neutral: 246,990 (49.4%)
    • positive: 175,410 (35.0%)

AION Taxonomy Methodology

AION's taxonomy uses 136 predefined market events with known sentiment and sector impacts. Each event has:

  • base_impact: Sentiment strength (mild, normal, severe)
  • sector_impacts: How the event affects different sectors
  • market_weight: Overall market importance

This methodology ensures consistent, accurate labels that understand financial context.

Training Procedure

  • Framework: PyTorch with HuggingFace Transformers
  • Architecture: Transformer encoder
  • Epochs: 3
  • Batch Size: 32
  • Learning Rate: 2e-05
  • Hardware: Apple M4 (MPS acceleration)
  • Training Time: ~10 hours

Evaluation

Validation Set Metrics (100K samples)

Epoch Accuracy F1 Score Loss
1 99.65% 99.56% 0.0100
2 99.63% 99.54% 0.0103
3 (Final) 99.63% 99.54% 0.0098

Per-Class Performance (Epoch 3)

Class Precision Recall F1
negative 0.99 0.99 0.99
neutral 0.99 0.99 0.99
positive 0.99 0.99 0.99

Test Headlines (6 Problematic Cases)

Headline Expected v2 Prediction v3 Prediction
"Markets Crashing" negative positive ❌ negative βœ…
"Stocks to buy...10-30% return" positive neutral ❌ neutral ❌
"Gold slides over 3%" negative negative βœ… negative βœ…
"RBI hikes repo rate" negative neutral ❌ neutral ❌
"TCS record earnings" positive neutral ❌ positive βœ…
"Market crashes on recession" negative negative βœ… negative βœ…

Accuracy: v2 = 33% (2/6) β†’ v3 = 67% (4/6) βœ…

Limitations

  1. Ambiguous Headlines: May misclassify headlines that don't clearly signal sentiment:

    • "Stocks to buy in 2026" β†’ predicts neutral (should be positive)
    • "RBI hikes repo rate by 25 bps" β†’ predicts neutral (should be negative)

    These are being addressed in future taxonomy updates.

  2. Overconfidence: Model often returns 100% confidence scores. Use confidence scores as relative indicators rather than absolute probabilities.

  3. Domain Specificity: Works best on Indian financial news. Performance may degrade on:

    • Non-financial text
    • Non-Indian market context
    • Social media or informal text
  4. Taxonomy Coverage: ~40% of headlines match taxonomy events directly.

Use Cases

Intended Uses

  1. Financial News Analysis: Automated sentiment classification of Indian financial news headlines
  2. Market Research: Sentiment trend analysis across sectors or time periods
  3. Portfolio Monitoring: Track sentiment around specific stocks or sectors
  4. Academic Research: Study sentiment-market relationships in emerging markets

Out-of-Scope Uses

  • Direct trading decisions without human oversight
  • Non-financial sentiment analysis
  • Non-English text
  • Real-time trading systems (use internal production systems)

Usage

Using aion-sentiment Package (Recommended)

from aion_sentiment import SentimentAnalyzer

analyzer = SentimentAnalyzer()  # Uses v3 by default
result = analyzer.predict("RBI hikes repo rate by 25 bps")
print(result)
# {'label': 'neutral', 'confidence': 0.89}

Using Transformers Directly

from transformers import pipeline

classifier = pipeline(
    "text-classification",
    model="aion-analytics/aion-sentiment-in-v3"
)
result = classifier("RBI hikes repo rate by 25 bps")
print(result)
# [{'label': 'LABEL_1', 'score': 0.89}]
# Note: LABEL_0=negative, LABEL_1=neutral, LABEL_2=positive

Batch Processing

from aion_sentiment import SentimentAnalyzer
import pandas as pd

analyzer = SentimentAnalyzer()

# Single prediction
result = analyzer.predict("Stock market reaches all-time high")

# Batch prediction
texts = [
    "RBI hikes repo rate",
    "Stock market crashes",
    "TCS reports record earnings"
]
results = analyzer.predict(texts)

# DataFrame integration
df = pd.DataFrame({'headline': texts})
df = analyzer.analyze(df, text_column='headline')

Label Mapping

Label ID Label Name Description
0 negative Bearish sentiment, negative outlook
1 neutral Balanced reporting, factual statements
2 positive Bullish sentiment, positive outlook

Model Versions

Version Release Date Training Data Accuracy Notes
v3 2026-03-26 AION Taxonomy (400K) 99.63% Current release
v2 2026-03-26 External lexicon (823K) 98.55% Deprecated - labeling issues
v1 2026-03-14 SHAM labels N/A Initial release

Related Models

  • aion-analytics/aion-sentiment-in-v2: Previous release (deprecated due to labeling issues)
  • cardiffnlp/twitter-roberta-base-sentiment: General sentiment model

Citation

@software{aion_sentiment_v3_2026,
  author = {AION Open Source Contributors},
  title = {AION-Sentiment-IN-v3: Indian Financial News Sentiment Analysis (Taxonomy-Corrected)},
  version = {3.0.0},
  year = {2026},
  url = {https://github.com/AION-Analytics/market-sentiments}
}

Acknowledgements

  • AION Taxonomy: 136 events with known sentiment used for label creation
  • NRC Emotion Lexicon: Mohammad & Turney (2013) - Used for emotion analysis
  • HuggingFace Transformers: Wolf et al. (2020) - Model framework
  • AION Analytics: News corpus and infrastructure

Contact

Changelog

v3.0.0 (2026-03-26)

  • Built on AION Taxonomy labeling methodology
  • Trained on 400K headlines with AION taxonomy labels
  • Validation accuracy: 99.63%
  • Test headlines: 67% accuracy (4/6)
  • Fixed: "Markets Crashing" now predicts negative (was positive in v2)
  • Fixed: "TCS Record Earnings" now predicts positive (was neutral in v2)

Known Issues

  • Ambiguous headlines like "Stocks to buy" or "RBI hikes repo" may predict neutral
  • Working on improving these edge cases in future releases
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