Low price denomination stocks dominate investor interest, shows data

Stocks quoting a low price denomination have caught investors’ fancy, defying economic indicators. Of the 854 stocks that quoted less than Rs 20 on March 23, 2020 — when the Sensex hit more than a three-year low — 482 have doubled.

Thirty-nine, including Subex, McLeod Russel, Jet Airways, Jain Irrigation Systems, and Sintex Plastics Technology, have surged more than 5x during this period.

Coming at a time when economic activity was disrupted due to the Covid-19 pandemic, the rally in these stocks has left market players baffled. According to analysts, a new crop of retail investors entering the market could be drawn