Mumbai, Oct 2 Several low-priced penny stocks have witnessed a sharp fall over the past month, with 13 counters losing between 20 per cent and 55 per cent of their value.
These stocks, mostly trading below Rs 20, belong to companies with a market capitalisation of under Rs 1,000 crore and have seen a minimum trading volume of 5 lakh shares recently.
The screening highlighted some of the worst performers in the segment, showing how volatile and risky this space can be.
Starlineps Enterprises topped the list with a steep 56 per cent drop, closing at Rs 2.19.
It was followed by Murae Organisor, which slumped 49 per cent to Rs 0.27, and Alstone Textiles (India), which declined 47 per cent to Rs 0.37.
Mehai Technology also fell 47 per cent to Rs 4.83, according to its stock exchange filing.
Other laggards included Spright Agro, which slipped 30 per cent to Rs 0.76, Retro Green Revolution, which was down 28 per cent at Rs 2.63, and Avance Technologies, which dropped 28 per cent to Rs 2.05.
Vantage Knowledge Academy lost 27 per cent, closing at Rs 2.12, while Sunshine Capital and Dharan Infra-EPC fell 24 per cent and 23 per cent, respectively.
Market experts often caution investors about penny stocks due to their low liquidity, high volatility, and limited transparency.
These factors make them vulnerable to price manipulation and sudden crashes. Although such stocks attract small investors with their low entry prices and potential for quick returns, they can easily lead to heavy losses if not approached with caution.
Meanwhile, last week, after a strong rally in October, the Nifty index moved into a narrow range.
In October, the index had surged nearly 1,500 points from its low of 24,588. However, towards the end of the week, it slipped after approaching its record high.
“Global uncertainties and profit-booking at higher levels slowed the market’s momentum,” experts said.
“By the end of the week, Nifty closed with a marginal decline of 0.28 per cent and formed a Shooting Star candle on the weekly chart, indicating a pause after a strong uptrend,” market watchers said.
(Auto generated news from IANS Feed. This has not been edited by enewstime desk)
