Birla Tyres to RCom, low-denomination stocks hit top gear on Dalal Street

Dream run may come to a screeching halt anytime, warn analysts as fundamentals do not back them

Stocks quoting a low price denomination have caught investors’ fancy on Dalal Street, defying economic and fundamental indicators.

The 890 stocks that quoted below Rs 20 on March 23 — when the Sensex hit a more than three-year low of 25,981 — have rallied an average 60 per cent. In comparison, the benchmark indices have gained 45 per cent.

Over 86 per cent of them, or 767 stocks, delivered positive returns between March 23 and July 30. A whopping 157 of the 890 stocks have more than doubled. Close to a dozen, including Birla Tyres, McLeod Russel, Reliance Communications, Ballarpur