Low-priced stocks: A roulette that may well be a losing bet, say experts

Many have weak fundamentals to back share price rise and may not live to see the next bull run: Experts

Stocks trading at a low price denomination have risen sharply, largely due to speculator interest or new investors trading actively during the pandemic.

The S&P BSE Sensex has gained 135 per cent from the lows it hit on March 23, 2020. And 666 of the 833 stocks trading at Rs 20 or below in March 2020 have outperformed the index. Even from a one-year perspective, 657 of these stocks have outperformed the Sensex in 2021. In fact, some of these stocks have seen gains between 50x and 80x in less than two years.

Of the 508 stocks trading at Rs