By- Deepti Verma
Penny stocks often capture the imagination of investors because of their low price and the possibility of high returns. The Indian stock market includes penny stocks which represent low-priced shares under ₹10 or ₹20 per share from companies with minimal market capitalization. The investment potential of penny stocks exists but they come with significant danger.
For anyone considering penny stocks, the first question is: where can I find a reliable list of them? Let’s break it down step by step.
What Are Penny Stocks in the Indian Context?
The term “penny stock” in India lacks an official definition from SEBI (Securities and Exchange Board of India) although the US defines it as shares priced below $5. Market participants and investors in India view shares priced at very low levels especially when they cost less than ₹10 or ₹20 as penny stocks.
The companies operating in this sector consist of small businesses with minimal market recognition and restricted trading activity because their shares experience low market activity.
Where to Find a List of Penny Stocks in India
- Stock Exchanges (NSE and BSE) Websites
Both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) provide complete lists of all listed companies.
- You can access the complete equity list through nseindia.com and bseindia.com websites.
- You can use stock price filters on these websites to find shares priced below ₹10 or ₹20 which will help you create your penny stock list.
- Stock Screeners
Stock screening tools on multiple financial platforms enable users to select companies through specific criteria which include price per share and market capitalization and trading volume.
- The stock screening tools of Money control and Screener.in and ET Markets and Investing.com enable users to create instant lists based on their preferred criteria.
- Users can establish a price threshold of less than ₹20 to receive an immediate list of matching stocks.
- Brokerage Platforms
Indian discount brokers along with full-service brokers enable their users to create watchlists and screen stocks through their mobile applications.
- Users of Zerodha Groww Angel One and ICICI Direct can organize stocks by price or market capitalization through their platforms.
- These lists receive real-time updates which makes them beneficial for traders who actively invest.
- Financial News Websites and Magazines
Business news websites regularly release lists of stocks which investors should monitor at the penny stock level. The lists serve as initial research tools but investors need to exercise caution because not all listed stocks match their investment objectives.
- Dedicated Market Data Services
The CMIE Prowess platform and paid stock analysis tools offer detailed information about penny stocks through their subscription services which include financial data and trading records and valuation statistics.
Things to Keep in Mind Before Using Penny Stock Lists
While it may be easy to generate or access a list, it is equally important to understand the risks and responsibilities that come with penny stock investing.
- Low Liquidity
- Penny stocks often trade in very low volumes. This means buying and selling them may not be easy, and sudden price swings are common.
- Lack of Information
- Many small companies may not provide detailed financial disclosures, making it harder to assess their true worth.
- High Volatility
- Prices can double or halve in a short span of time, leading to both potential windfalls and heavy losses.
- Risk of Manipulation
- Due to their low prices and volumes, penny stocks are sometimes subject to price manipulation or pump-and-dump schemes.
- Research Is Key
- Always look beyond the price. Study the company’s business model, past financials, promoter background, and future growth potential before investing.
Steps for Investors Interested in Penny Stocks
- Starting with official exchange data to ensure the stocks are legitimately listed.
- Using stock screeners to refine the list according to your preferences.
- Verifying company fundamentals through quarterly results and annual reports.
- Beginning with a small allocation of your portfolio, as penny stocks carry higher risk than blue-chip or mid-cap stocks.
- Staying updated with company announcements, SEBI filings, and market news.
Conclusion
The process of obtaining Indian penny stocks becomes accessible through exchange websites and financial screeners and broker platforms. The initial step of obtaining this list serves as the beginning of the process. The evaluation process of each company stands as the essential factor for successful investment decisions. Profit potentials do exists in penny stocks but they should not be considered as a fast track to financial success. For long-term success, combine curiosity with caution, and always align your investments with your financial goals.
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