John F. Clark 
Who wouldn’t like money doubling in a count number of months compared to years if kept in a savings deposit? There is an announcement that goes, and the rising tide takes everything better. For Indian markets, the gush of liquidity has taken many shares to better across market capitalization.
The rally becomes extra suggested in small and mid-cap areas and penny stocks, which saw many shares doubling in a matter of months. It is an accurate signal for traders preserving the inventory, but no longer an extraordinary signal if it isn’t always sponsored through basics.
There is some other category of shares which analysts advise buyers to live far from – Bhangaar Cap.
This section comprises stocks that often have defective commercial enterprise fashions.
“I prefer handiest mid-cap shares. The percentage of large-cap stocks becoming a multi-bagger is less than compared of mid-caps. Also, mid-caps push upward faster. By the way, there’s one extra category that’s ‘Bhangaar Cap’, which one desires to discover and hold away,” Vijay Kedia, handling director at Kedia Securities, informed Moneycontrol.
There are many single-digit stocks — no longer are they all the Bhangaar cap, by any approach — that have more than doubled since the reason that begins of 2017. For simplicity, we have taken shares quoting below Rs 20 and features now more than doubled.
Nearly forty stocks greater than doubled to return to 500 percentage go back in the year 2017.
Stocks that rose consist of names like Padmalaya Tele, which rose 496 percent, observed by C&C Construction, which won 318 percent, Magnum Ventures rallied 237 percent, and Toyama Industries was up 203 percent, among others.
This is the list of penny stocks that have finished well. Please note: Moneycontrol no longer in any way categorizes them as ‘Bhangaar shares.’ We are simply flagging their sturdy overall performance.
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But, are these shares a smart purchase at contemporary degrees? Not precisely, advise experts. A fine, those stocks will be a trading play and not a funding play. One robust motive which investors must component in before making a funding bet in those organizations is liquidity.
The buying and selling volumes are shallow in the maximum of the penny shares, which sometimes becomes a curse for buyers who want to exit from the stock or e-book profits.
Investors will be better off investing in stocks that have sound fundamentals, penny stocks.
Solid business version, dynamic management, and boom.
“Indeed, such shares are wealth destroyers, and consequently, they’re referred to as Bhangaar stocks because in the end, they have to be bought off for worthless. Getting the enterprise going takes loads of effort, crew paintings, and the proper form of the model to create money,” Jimenez Modi, CEO, SAMCO Securities, told Moneycontrol.
“Most stocks aren’t worthy of investments. There are some exceptions to this rule. However, this is very uncommon. Investors, out of their great long-term hobby, should avoid such Bhangaar stocks. The returns generated are engaging at the first example, but on a deeper look, most of the people are penny stocks which have a market cap of less than Rs 50 to Rs one hundred crores,” he said..H,-,
For instance, Modi quoted that Padmalya Tele recorded yearly sales of just Rs 2 crore, which commands a market cap of Rs 12 Cr. The stock has given 500 percent returns. Similarly, C&C Construction has nearly wiped off its equity and lost reserves. However, it has a large debt of Rs 2400 crore; the enterprise commands a market cap of Rs 163 crore.
Trading stocks online or trading stocks and shares is a common phenomenon in today’s stock trading segment. Although it is a common phenomenon around the world for a few, it is still a mystery. Many still perceive creating an online trading account, buying and selling stocks, and constantly tracking your investment as a herculean task. To get over such perceptions, the first and foremost thing you must know is to read a lot about markets and their movements. Besides reading, getting in touch with online stockbrokers who have ample knowledge of trading and managing stocks would benefit beginners.
After acquiring knowledge on stocks and getting in touch with online brokers, it is always necessary to have ample information on the stocks you are investing in. To get enough information about various companies, their stocks, and their prospectus, you need to know a few tips on trading stocks online. Let us look forward to a few tricks or steps you have to follow if you are a beginner. It would help if you started your online trading with research and analysis. Research and analyze the companies that are flourishing and the companies that are moving downward. Through this research, you will be equipped with enough knowledge on stock fluctuations and can easily identify the prospects of shares of respective companies. This step should be a rule of thumb for both beginners and experienced online traders, as this would lead them to choose the right stock.
Once you are done with the research and analysis of stocks next step must be quite tedious for beginners.
But I cannot go further without this. It would be best to get an idea of fundamental and technical analyses of stocks, as these analyses are the sole driving forces of any stock market. Once you know fundamental and technical analyses of stocks, the next step is to understand the choices of an online stockbroker and an investor like you. The traders choose a stock that is profitable for both the company and the client. But this should not be the case with the investors. The investor must choose a profitable stock that can maximize
Many corporations that are still below 100 crore market are struggling and finding that their returns such an enterprise generates are nothing but a mirage; they’re by no means realized; however, they remain on paper, simple, which in the end becomes worthless.
In the final two to a few weeks, Sensex declined through 5 percentage simultaneously as S&P BSE Mid-cap & Small-cap have been down through 7 percent from the best-ever high to the latest low, thanks to valuations which are trading nicely above long term averages.
The valuations of a number of the small and mid-cap shares have fallen below long-term averages; as a result, any knee-jerk response may want to reason more damage in the broader marketplace, according to experts.
“Mid-cap shares have a propensity to outperform the benchmark in multiple instances. It’s now not unexpected to see the five-hundred percent return. At this movmomentt is not recommended to have this stock in your portfolio because it’s already overbought,” Dyaneshwar Padwal – AVP – Technical Analysis, KIFS Trade Capital, informed Moneycontrol.
“There are three basic things to be taken into consideration with the aid of each investor at the same time as trading in small-cap stocks – management of the company, market cap, and turnover,” he said.
