Penny Shares: While Nifty and Sensex have reached their lifetime highs, other stocks are also on the upswing. Presently some penny stocks have captured the market and are moving at a rocket pace. In the last one week, 636 penny stocks have outperformed the Sensex. In a week, the Sensex rose just 0.4 per cent while penny stocks rose 40 to 67 per cent.
Around 60 penny stocks have given 20 to 67 per cent returns in the last one week. These are all such stocks whose market capitalization is less than Rs 500 crore. Last week, Jonjua Overseas was the best performing stock, earning 67 per cent returns to investors. After that Ward Ventures and Deepna Pharmachem have got 55-55 percent returns. In just one week, investors have earned 40 percent in the shares of Madhav Infra Projects, which are available at a price of just Rs.6.
Last week, the general sentiment in the market was positive due to which midcap, smallcap, microcap stocks performed well as compared to largecaps. In the last one week, around 30 penny stocks have given 20 to 30 per cent returns in the market. In FY23, 66 penny stocks outperformed multibagger stocks, while the benchmark Sensex ended negative by two per cent. Stocks like Jeonjua Overseas have made good comebacks after a sharp fall this month.
What should investors do now?
The market movement is likely to remain positive in the coming weeks as most of the managers are of the view that the index will register its new high. However, the market will be keeping an eye on two important policy announcements by RBI and US Fed Reserve. Apart from this, it remains to be seen how the monsoon progresses. Pravesh Gaur, senior technical analyst at Swastik Investmart, said that this time the monsoon has been delayed by 10 to 13 days, which has increased the concern.
Some other stocks which have given more than 25 per cent returns in the last week are also included in this list. For example, the shares of Kisan Molding have increased by 40 per cent. Tijaria Polypipes stock has gained 35 per cent in a week. Flora Corporation’s stake has increased by 27 percent, Navkar Urban Structure’s stake has increased by 27 percent. Similarly, shares of Promect Impex and Srivastava Finance & Leasing have also gained 27 per cent each.