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Stock slide silences buzzing SMS biz
Subscription of services offering stock tips on SMS dips by 25-30%
Maulik Buch. Vadodara
Bear-bitten traders may continue to show up on Dalal Street in large numbers, but the number of stock tips bleeping on retail investors mobile phones has plunged. The volatility in the stock market is having a knock-on effect on mobile services that give tips on buying or selling shares to subscribers on SMS.The paid subscription of some such services has gone down by 25% to 30% over the past few months. The slippage is despite new offerings by companies to existing and new subscribers. Keywords like BTST (buy today, sell tomorrow), intra-day targets and future calls, among others, were driving share market-specific SMS services when the Sensex was touching new highs.However, the recent stock market tumble has compelled a large number of investors, retail investors in particular, to stop subscribing to such services.“The number of people subscribing these SMS services has gone down because of bearish market conditions,” CEO of Vadodara-based StocksBhavishya.com, Rajesh Danger, said. “Around 30% of subscribers have stopped using SMS services. Those who have discontinued are mostly retail investors. We have started new offers to maintain our customer base, and attract new ones.”He said that before January he used to get more than 1,600 messages in a day, but now he was getting less than 1,000 messages. Retail investors were fervent subscribers of these services as they didnt have time to study market fundamentals or keep a track on movement of share prices. The subscription fee of such services is dependant on the type of package and the frequency of stock tips. Some packages cost Rs1,500 a month and some are priced up to Rs15,000.“Most of the subscribers are retail investors, and they are increasingly discontinuing the services,” MD & CEO of Ahmedabad-based Dhanvarsha Fin-cap, Nilesh Kotak, said. “A volatile market has resulted in 25% decrease in number of subscribers.”
Subscription of services offering stock tips on SMS dips by 25-30%
Maulik Buch. Vadodara
Bear-bitten traders may continue to show up on Dalal Street in large numbers, but the number of stock tips bleeping on retail investors mobile phones has plunged. The volatility in the stock market is having a knock-on effect on mobile services that give tips on buying or selling shares to subscribers on SMS.The paid subscription of some such services has gone down by 25% to 30% over the past few months. The slippage is despite new offerings by companies to existing and new subscribers. Keywords like BTST (buy today, sell tomorrow), intra-day targets and future calls, among others, were driving share market-specific SMS services when the Sensex was touching new highs.However, the recent stock market tumble has compelled a large number of investors, retail investors in particular, to stop subscribing to such services.“The number of people subscribing these SMS services has gone down because of bearish market conditions,” CEO of Vadodara-based StocksBhavishya.com, Rajesh Danger, said. “Around 30% of subscribers have stopped using SMS services. Those who have discontinued are mostly retail investors. We have started new offers to maintain our customer base, and attract new ones.”He said that before January he used to get more than 1,600 messages in a day, but now he was getting less than 1,000 messages. Retail investors were fervent subscribers of these services as they didnt have time to study market fundamentals or keep a track on movement of share prices. The subscription fee of such services is dependant on the type of package and the frequency of stock tips. Some packages cost Rs1,500 a month and some are priced up to Rs15,000.“Most of the subscribers are retail investors, and they are increasingly discontinuing the services,” MD & CEO of Ahmedabad-based Dhanvarsha Fin-cap, Nilesh Kotak, said. “A volatile market has resulted in 25% decrease in number of subscribers.”
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