Penny Stocks

Open FREE Demat Account

By proceeding, you agree T&C*

List of Penny Stocks

Download List


Penny stocks in India are the stocks that are traded at a low price and volume. The minimum price of penny stocks in India is Rs. 0.01. Penny stocks in India are traded on the NSE and the BSE. Invest Now

The price of penny stock can be more volatile than other shares. There is no assurance that they will give good returns on investment. The value of penny stocks may go down without any warning. If you want to invest in penny stocks, then follow the rule of "Don't put all eggs in one basket".

Penny stocks are characterised by high volatility in prices and do not have any formal listing on the exchange. Penny stocks usually carry high risks when it comes to investment, especially when trading them online.

Penny stocks are considered shares of low value traded on over-the-counter bulletin boards. Unlike regular trading, investors do not buy these securities from the company itself but brokers or dealers. These dealers make a profit by marking up the price of the stock they are selling to you. Thus, they are also known as 'marketers'.

Penny stocks are generally quoted with two different prices – bid price and ask price. The bid price is the price at which a dealer is willing to buy the security from you, while the asking price is when a dealer will sell you that security. The difference between these prices is called the spread, and it varies with different penny stocks.

The spread indicates how expensive or cheap a penny stock is being traded. The wider the spread, the more expensive it is for investors to buy them, which might translate into higher risks for investors who hope to gain from price appreciation of these securities.

Because of the risk involved with penny stocks, some investors don't think it's worth buying shares in them. Others argue they're fine if you know what you're doing and have the time to monitor your investments carefully.

Yes Bank, Suzlon Energy, South India Bank, Reliance Power, Vodafone idea, and Bank of Maharashtra are among the top penny stocks.

You require a Demat account in order to trade penny stocks. Using an online trading platform, an investor can easily start trading penny stocks. Click here to open a demat account with 5paisa.

Penny stocks are traded on BSE and NSE.

When compared to other investments like mutual funds or equity shares, penny stocks which offer investors above-average returns on their money tend to give the highest returns.

Penny stocks that have a low pledge, high sales, and profit growth, and P/E less than industry P/E are considered to be the safest penny stocks to buy

Gains from penny stocks could reach as high as 500% or even more. You can still make a profit of up to Rs. 500 even with a modest investment of Rs.100.

This frequently occurs in penny stocks because they lack liquidity. Similarly to this, there may be many bids but no one is willing to sell these shares when there is strong buying pressure and demand for a particular stock.

Low-priced stocks are highly volatile. This fact worries a lot of investors. Because of this volatility, it is possible to lose every penny you have put into penny stocks. Therefore if you have knowledge of volatility then you can invest in penny stocks.

Buying penny stocks raises a number of issues. First, you could lose money if the company fails and its stockholders lose their investment. Another risk is that the stock depreciates over time while other investments grow in value, making it unprofitable (possibly outperforming them).

You might be tempted to make long-term investments in penny stocks. However, if you manage to generate a 15%–20% return in a brief period, you can adopt a strategy where you sell penny stocks.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.