New Delhi: there was a rise in the stock market last week. During this period, BSE Sensex rose by about 2.3 percent. During this period, seven penny stocks gave returns between 20 to 30 percent. This includes shares whose price is less than Rs 20. The market cap of these companies is less than Rs 1,000 crore and their trading volume is more than 50 lakh shares.According to data from ACE equity, Anil Ambani’s company Reliance Communications is also included in these. Know which other penny stocks are included in this list… Last week, Srestha Finvest remained on top among the penny stocks giving highest returns. During this period, the company’s shares rose by 32 percent. On Friday, the company’s shares closed at Rs 0.79 with a gain of 9.72%. The market cap of the company is Rs 129.56 crore. Its 52 week high is Rs 1.28.Similarly, shares of Comfort Intech rose by 28 percent last week. On Friday it closed at Rs 15.05 with a rise of 16.67%.
Reliance, Airtel, LIC… 6 out of top 10 of the country made profit,4 remained in loss.
Price less than Rs 5
Shares of Cressanda Railway Solutions gained 27% in the last week and closed at Rs 11.74 on Friday. Shares of Monotype India also rose by 27 percent last week and its closing price on Friday was Rs 2.42.Debt-ridden businessman Anil Ambani’s company Reliance Communications gave 26 percent return last week. Its closing price on Friday was Rs 2.32. Shares of Teamo Productions HQ rose 24 percent last week and its previous closing price was Rs 1.63. Genpharmasec returned 20% last week. Its closing price on Friday was Rs 3.58.
How can investors identify promising penny stocks amid market volatility?
Interview between Time.news Editor and Stock Market Expert on Recent Penny Stock Surge
time.news Editor (TNE): Welcome, and thank you for joining us today.The stock market has seen quite a rise recently, with the BSE Sensex surging about 2.3 percent last week. What are your initial thoughts on this upward trend?
Stock Market Expert (SME): Thank you for having me. The recent rise in the stock market, especially the significant gains in penny stocks, is interesting. It reflects investor confidence and may indicate a recovery phase following previous market corrections.
TNE: Absolutely! Speaking of penny stocks, we learned that seven penny stocks returned between 20 to 30 percent during this time, including shares priced below Rs 20. Can you explain what influences such drastic movements in penny stocks?
SME: Penny stocks can be very volatile and susceptible to rapid price changes based on market sentiment,news,and trading volumes. In recent weeks, companies like Srestha Finvest, which saw a 32 percent rise, may have benefitted from positive investor sentiment or specific developments propelling their stock price.
TNE: That’s a valuable insight. Srestha Finvest appears to be at the forefront of this surge,closing at Rs 0.79 with a notable gain. Can you tell us more about the implications of such performances on the overall market landscape?
SME: Performance like that of Srestha Finvest can boost interest in the penny stock sector, attracting traders looking for high potential returns. However, investors should be cautious. While the returns can be enticing,penny stocks frequently enough come with higher risks due to their low liquidity and small market caps—in Srestha’s case,it’s Rs 129.56 crore.
TNE: That’s an essential caution for investors. Other notable performers included Reliance Communications, which, despite its troubled financial background, reported a 26 percent return. How do you view the involvement of such established entities in penny stock movements?
SME: It’s quite fascinating. Reliance Communications’ inclusion in this list underscores that even well-known companies can be part of the penny stock phenomenon if they are struggling financially.This scenario can attract speculators looking to capitalize on volatility, further influencing their stock prices based on short-term sentiment rather than fundamentals.
TNE: That makes sense. Investing in stocks like Cressanda Railway Solutions and Monotype India, which gained 27 percent last week, can be appealing. What practical advice would you offer to retail investors considering investments in penny stocks?
SME: Investors should conduct thorough research before diving into penny stocks. It’s crucial to analyze financial health,market trends,and news related to each company. Additionally,diversifying one’s portfolio and being prepared for high volatility can help manage risks associated with these investments.
TNE: Well said! Lastly, given the current market dynamics and recent trends, what should investors look out for in the upcoming weeks?
SME: Investors should keep an eye on overall market trends, including any economic data releases or policy changes, as these can significantly influence stock prices. Also, it’s wise to track any updates related to specific penny stocks, as changes in management or strategic direction can impact their value rapidly.
TNE: Thank you for sharing these insights with us today! It’s crucial for our readers to understand both the opportunities and risks associated with investing in the stock market, especially with penny stocks.
SME: Thank you for having me. I appreciate the discussion on what can be a complex but rewarding topic for investors.