A total of 636 penny stocks gave index-beating returns in the week gone by. The S&P BSE Sensex was down 0.4% week-on-week.
As many as 60 penny stocks have given returns of over 20-66% last week. These stocks have a market capitalisation of less than Rs 500 crore.
Jonjua Overseas was the best performing stock, giving 66% returns last week, followed by Vaarad Ventures and Dipna Pharmachem, which gave 55% returns each.
A Rs 6 stock Madhav Infra Projects, gave handsome returns of 40% to investors in the week gone by.
The general sentiment in the broader market has remained positive in the recent weeks, helping midcap, smallcap, microcap stocks do much better than the large caps.
As many as 30 penny stocks have given returns in the range of 20-30% last week.
In FY23, 66 penny stocks managed to turn multibaggers, when benchmark Sensex gave negative returns of 2%.
Stocks such as Jonjua Overseas rebounded smartly after falling sharply earlier this month following the exchanges’ decision to put micro-small cap companies under enhanced surveillance framework.
What should investors do?
The overall set up for the market remains positive for the week ahead, with most money managers seeing indices scaling fresh record highs.
However, with two major events of RBI and US Federal Reserve policy actions behind, market participants will closely track the monsoon trends and other macroeconomic trends for cues
“The Indian market will be closely monitoring the progress of the monsoon season. The country’s weather office has maintained its forecast for a normal monsoon this year; however, it has already been delayed by around 10–13 days this year,” says Pravesh Gour, senior technical analyst, Swastika Investmart.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
