Penny Stocks
Penny stocks in which there were no trades for the last two years are suddenly proving to be the highest returns. Many such stocks have given triple returns in the last three months. Not only this, but market traders are also participating in it.
These stocks have seen significant growth
Among the stocks that have seen significant growth, Ruchi Infra shares was trading 5 times at Rs 11.19. JMT Auto’s stock was trading 4.10 times higher at Rs 4.70 in June. The stock of Vodafone Idea was also trading up three times to Rs 10 its high was 12 but now it’s trading at 7 only. The stock of Ayush Foods was up 3.3 times at Rs 63.70. Syntax Plastics shares trading 3.28 times at Rs 2.83. Mankasia Aluminum shares have increased 3.17 times during this period. It is trading at Rs 10.44.
People are investing in the market because of lockdown
Actually penny stocks are those which are absolutely cheap. They also cost 2 rupees, five rupees or 12-15 rupees. Although there is no reason to see a sudden surge in these stocks, they are increasing significantly daily. Actually, people are not going out due to lockdown and some new people are also placing bets in stocks. It is believed that such people are buying by looking at these cheap stocks. This is the reason why these stocks have started showing a sudden boom.
The market capitalization of these companies is also less than Rs 500 crore. These are stocks in which experienced investors never want to invest.
Volume is also increasing significantly
Statistics show that about 300 micro-cap stocks have gained in the three-month period since April 1. For example, the daily volume of Opto Circuit’s stock has reached 23 million. Earlier there was a volume of 46 lakh shares daily. The share price was Rs 1.77 in April. It is currently trading at Rs 12.25. That is, it has given almost 6 times the returns in three months.
20 lakh new accounts opened, including retail investors
Similarly, the share of Andhra Cement with market capitalization of 225 crores was trading at Rs 7.57 in April. Currently, it is trading 3.21 times above Rs 21. Its daily average volume has seen a jump of 470 percent compared to March. Between March 1 and May 31, 2 million new accounts have been opened by retail investors in brokers. In this, small investors are placing bets in such stocks.
Sometimes investors get good profit in penny stocks.
Market experts said that these are some of the stocks in which sometimes investors can make a lot of profit, but these are very risky stocks. This type of penny stock can see a sudden movement. These shares can please investors for a short time, but later they not only make losses to investors but also sink their entire deposit capital.
In fact, many leading online brokerages recently advised against avoiding trading in a penny and illiquid stocks. Recently, BSE had identified 703 such stocks that fall in this category. It is advised not to invest in these stocks.