Best Shares Below 10 Rupees (INVESTORS CHOICE 2021)

Posted by sonu nayak on February 25th, 2021

What are penny stocks?

Shares that trade at extremely low prices in the shares market fall in the category of ultra-penny stocks.

In the article on the Indian stock market, you will get the list of stocks that trade at prices less than 10 rupees.

These low price stocks are lesser-known to the larger investing group as investors remain away from penny stocks because the information regarding penny-shares fundamentals and businesses is either not genuine or not available in the market.

However, shares below 10 rupees are also known as multi-bagger stocks.

As these shares are illiquid sometimes only a few can lead to getting success in hitting the circuit limit on the market. These penny-stocks mostly give higher profit returns when hitting circuits for several days.

Low-price stocks trade at such low rates for a reason because the larger investing public doesn't show interest in them because of lack of information about them and they look to exit sooner or later once penny-stocks have given a decent amount of returns.

Maximum low price shares are often found non-compliant with BSE/NSE exchange regulations and also are not transparent. They only increase or decrease when there is some news or turnaround event. The news leads to an increase in their trading volumes and prices increased. In the share market, very few of them(Low price shares) turn out to be true or genuinely fundamentally stronger.

Things to keep in mind before buying below 10 rupees shares.
Investors who generally trade in penny stocks are the beginners or lower class of retail industry investors who do not keep a stock portfolio approach and they invest in low price shares based on news or tip from a so-called expert, thinking the price is already going down too much and they will not lose much money but if that turns out to be true and market soar then it will double or triple their investing money.

However, before investing in these types of shares beginners' investors should always keep in mind that they should start with low investment and might be investing in small amounts in these shares but still, they can lose 100 percent of their capital money.