Select penny stocks, those priced below Rs 10, have managed to shift the fortunes of investors during the recent price surge as the Indian equities market has recovered sharply from the COVID-19 lows.
From its low points of 7,801 on March 24 last year to 17,415 on November 24, 2021, the benchmark NSE Nifty index has risen to 123 percent. Simultaneously, the Nifty 500, Nifty Midcap 100, and Nifty Smallcap 100 indices have gained 136 percent, 176 percent, and 230 percent, respectively.
The agri-biotechnology firm Equipp Social Impact Technologies have turned into the biggest winner on the National Stock Exchange (NSE) in terms of big movers. The company’s stock has risen to Rs 83.90 from Rs 0.20 on March 24 last year, representing a 41,850 percent increase. In just 20 months, an Rs 1 lakh investment in this stock has grown to approximately Rs 4 crore. Processed India was the company’s last name.
The next stock price on the list is IT services and business process outsourcing 3I Infotech. During that time, the company’s stock has increased by 8,104 percent, from Rs 1.20 to Rs 98.45. In addition, the stock prices of Rohit Ferro-Tech, Digjam, Stampede Capital (DVR), Jindal Photo, Brightcom Group, Tata Teleservices (Maharashtra), JITF Infralogistics, Jindal Poly Investment, Lloyds Steels, SEL Manufacturing, Prakash Steelage, Sintex Plastics, and CG Power and Industrial Solutions, have also grown by 2,000 percent to 7,200 percent.
Market observers believe that liquidity measures adopted by the RBI and the government, improved vaccination rates, a decrease in COVID cases, strong inflows from international investment firms and the entrance of new small investors all helped to strengthen the local share market.
“A mixture of institutionally diverse potential components, such as the government’s continued expenditure, simple policy, and dynamic features declared in the production, infrastructural, economic, and cultural sectors, bode well for country’s recurrent economic recovery,” said Janakiraman R, VP, and portfolio manager, emerging markets equity-India, Franklin Templeton. As a result, this upcycle might continue three to four years.”
He also said that, over the last 20 months, market optimism had been bolstered by increasing immunization rates and buoyant aggregate demand. Asset values appear to have minimal opportunity for growth. Profit growth will significantly impact market movement in the coming year. Temporary corrections may provide a more solid foundation for the long-term market rebound in the future.