penny stocks
Whenever there is talk of low budget investment in the stock market, penny stocks come in the eyes of investors. Especially the shares trading below Rs 10 attract retail investors because more shares can be purchased with less capital. In the recent month, some such penny stocks have created a buzz in the market by showing strong growth.
According to the data available on BSE, despite the market volatility, many cheap stocks performed well. Not only did the prices of these shares rise, but the trading volume also increased, which clearly showed the participation of investors.
Mangalam Industrial Finance
In the last one month, Mangalam Industrial Finance shares proved to be the most profitable deal for investors. This stock rose by about 70%. With the increase in price, purchasing also increased, due to which the market cap of the company also increased. Shares of Pulsar International also gave good returns to investors in the short term. At the same time, Avance Technologies once again proved that this stock can give profits in long term as well as short term. There were positive signals in the market regarding the business plans related to the company, due to which the demand for shares increased.
Shares like Satvik Sukun Lifecare, Starlineps Enterprises, Bluegod Entertainment, MSR India, Shah Metacorp, Teamo Production and PMC Fincorp also attracted the attention of investors by giving returns ranging from 20% to 35%. Deals related to these companies, future plans and improvement in volumes supported the shares.
Necessary precautions before investing
However, the greater the profit potential in penny stocks, the greater the risk. The fluctuations in these shares are sharp and sometimes the prices increase due to rumors or speculation. Therefore, before investing, it is very important to check the company’s financial position, promoter holding, trading volume and recent news. Investing only on the basis of momentum can lead to loss.
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