Analysts and investors agonise every morning over which could be the stock of the day. But guess which category of stocks has performed the best?
No, it is not the bank, auto component or even refinery stocks, but a mixed assortment that had only one defining factor common to them -- they were all trading at the bottom of the price curve, or below Rs 10.
There were 606 such penny stocks, accounting for 41 per cent of the total number of traded stocks on the Bombay Stock Exchange Sensex, on April 25, 2003, the day the Sensex slumped to a six-month low.
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The rise in prices ranges between 501 per cent and 1,270 per cent in case of 19 stocks, between 101 and 500 per cent in 325 stocks, between 51 and 100 per cent in 154 stocks, and between 1 and 50 per cent in the rest.
The market capitalisation of these stocks increased by 224.64 per cent, or Rs 29,313 crore (Rs 293.13 billion), from Rs 13,049 crore (Rs 130.49 billion) on April 25, 2003, to Rs 42,362 crore (Rs 423.62 billion) on August 20.
Of the 606 stocks, 84 were second-rung information technology stocks, 64 belonged to the textile sector, while 47 were from the non-banking finance companies sector.
There were also 31 from pharmaceuticals, 24 from steel, 22 from chemicals, and 16 from the engineering sector.
Visistha Trading led the gainers list. The scrip spurted by a mind-blowing 1,270 per cent, from Rs 2.35 on April 25, 2003, to Rs 32.20 on August 20.
Western India Shipyard ranked second in the gainers' list. The scrip rose 1,061 per cent from 65 paise to Rs 7.54.
Fairfield Atlas soared 922 per cent from Rs 2.10 to Rs 21.48, while the scrip of MSL Industries jumped 787 per cent from 35 paise to Rs 3.06.
Likewise, Kirloskar Investment's share price went up 769 per cent from 45 paise to Rs 3.95. Bhansali Engineering Polymers' share price also vaulted 732 per cent from Rs 8 to Rs 66.55.
Among the other gainers, Vista Pharma was up 697 per cent, Kalindee Rail Nirman (Engg) gained 651 per cent, Galaxy Multimedia rose 650 per cent, SVC Superchem added 609 per cent, Alka India soared 600 per cent, and MTZ Industries jumped 576 per cent.
Among information technology stocks, Shonkh Technologies reported the highest gain in market value, at 445 per cent. The scrip rose from Rs 3.30 to Rs 18.
The other gainers included, Cybermate Infotek (up 433 per cent), Netvista Information (up 392 per cent), Kaashyap Radiant Systems (up 332 per cent), Comfort Intech (up 320 per cent) and ICSA India (up 294 per cent).
In value terms, Steel Authority of India (SAIL) registered the highest rise in market cap.
SAIL's market cap increased by 335 per cent, or Rs 12,247 crore (Rs 122.47 billion), from Rs 3,655 crore (Rs 36.55 billion) to Rs 15,902 crore (Rs 159.02 billion).
SAIL was followed by MRPL (up Rs 21.51 billion), Jindal Vijaynagar Steel (up Rs 19.40 billion), Tata Teleservices Mah (up Rs 14.66 billion, IFCI (up Rs 8.68 billion), Ispat Industries (up Rs 8.27 crore billion), and Essar Steel (up Rs 6.41 billion).
Forward march
- Of the 606 penny stocks, 344 have posted more than 100 per cent returns between April 25 and August 20.
- The market capitalisation of the 606 stocks increased by 224.64 per cent, or Rs 29,313 crore, from Rs 13,049 crore on April 25, 2003, to Rs 42,362 crore on August 20.
- Visistha Trading led the gainers list. The scrip spurted 1,270 per cent, from Rs 2.35 on April 25, 2003, to Rs 32.20 on August 20.
