How to invest in stock markets now: 'Ask Motabhai' to investors' rescue

The BSE (Bombay Stock Exchange) recently launched a software that would help investors, across the board, to get information quickly and seamlessly. The exchange, has launched a chatbot ‘Ask Motabhai’ which is based on AI or artificial intelligence.

“With the chatbot in place we would be able to serve our audience better and help them with quick information without having to go through any other channel,” said Ashishkumar Chauhan, MD & CEO, BSE.

The chatbot, that can be accessed on the BSE webpage, provides information on stock price, corporate results and announcements, in real-time, of over 5,000 companies listed on the exchange. The exchange took this initiative to make it convenient and faster for investors, especially small, retail investors, to get information about the over 5,000 companies listed on the exchange.

Apart from stock prices and corporate news, visitors to the BSE webpage look for information about financial issues like mutual funds, derivatives, and Initial Public Offerings.

The BSE chatbot is programmed to address market related queries, like “What are the new IPOs?” and “Which stocks are trading at their 52-week high?” in addition to the capability to address queries related to corporate actions and a stock’s price.

Will this help small investors?

“The dissemination of information through various new online mechanism on exchanges is good step as it gives all financial data, on the website,” said Kishor P Ostwal, CMD, CNI Research said.

However, the consensus among experts is that similar dissemination of data is already provided in a smaller manner by some brokerages as part of the package that they offer to subscribers of their services. Small investor can make his/her own decisions using information and own analysis.

“Expensive software is for traders, not investors. Small investors do not need expensive software and can rely on the financial information available on exchanges,” added Ostwal.

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At the end of the day, investment decisions are based on future cash flow, free cash flow, sectoral trend, management quality and company’s growth prospects. One limit of the technology is that the data, from whichever source, is the analysis of the past data of the company, which generally works as a post-mortem.

“It is expertise and analysis, rather than software and reports that would give the small investor his edge. Data is in the public domain. So rather than data it is the analysis of the data and research that can give any investor the edge,” said Clifton DeSilva Director Altina Securities.

Source: DNA Money