Over 93% investors rely on market news for trading decisions: Survey

According to a survey by Reliance Securities, market news emerged as an important component when it comes to stock-picking

Market news has emerged as an important component when it comes to stock-picking with more than 93% investors relying on them for investing, a survey by Reliance Securities said today.

Reliance Securities, the broking and distribution arm of Reliance Capital, has unveiled its first retail investor survey which was conducted to outline investor preference and understand options considered by retail investors while making their investment decisions.

"Market news emerged as a very important component when it comes to stock-picking with more than 93% respondents saying they rely on market news for investing. Close to 66% considered it to be highly important factor for decision making," the survey said.

It said 70% retail investors sought information from multiple sources for making their decisions, out of which 68% look for two or more resources for the same.

"The survey clearly states that retail investors would like to look at multiple sources -- including brokerage reports and news -- for information before making any investment decision.

"This creates a space for new intelligent platforms that can aggregate information from multiple sources and provide them to these investors for better investing decisions," said B Gopkumar, CEO - Broking and Distribution business, Reliance Capital.

More than 80% retail investors preferred to check stock recommendations from multiple broking houses before investing and 35% feel it's highly useful to look for multiple opinions.

Given the opportunity, 95% investors are ready to embrace technology that helps them not only monitor news on their current portfolio but also help them decipher past trading patterns to enable better decision making in future with 75% respondents saying it is highly important to track the same for better future profits.

"An interesting trend that came up was that investors would like to see their own trading trends in the past to make investing decisions.

"Usually, the preference is on analyzing market trends and particular stock trends for investing but when given an option for evaluating their own trends of investing, a majority of these respondents felt that this would be also useful to identify gaps and help them invest better," Gopkumar said.

Brokerage has emerged as one of the key component while selecting a trading platform. Over 80% of respondents felt that brokerage price plays a key role in choosing the right broking house.