Such stocks, typically priced less than ₹10 and considered the riskiest across categories, made up about 66% of 50 stocks that fetched the highest returns this year so far, showed a Mint analysis. Rallying 266-1,062%, the 33 stocks turned multi-baggers in just six months, indicating the bulging profit of retail investors as typically institutional investors tend to avoid penny stocks. During the period, except for one, the top 10 performers among all listed stocks were penny stocks. Penny stocks are illiquid shares, which are highly volatile and, hence, considered riskier bets. “Manipulation and speculative trading are among the primary reasons for penny stocks to rise in this market environment.

Source: Mint July 04, 2021 18:33 UTC