The stock market is a big place and picking the right stocks to invest in can be pretty tough, especially if you’re new and don’t have a lot of money to invest. Whether you’re a beginner in the stock market, or looking for chances to make quick profits or rapid growth for a long time, making your way through the Indian stock market needs a careful plan.
In this detailed guide, we’ll look at the best stocks for beginners who are left with a bit of money, people who want to invest for a short time, and those who want one-night rapid growth in the Indian market.
Is Investing in Penny Stocks Risky?
Penny Stocks are risky because they’re from new companies that don’t have a lot of money or easy-to-sell assets. Their prices can drop suddenly or be manipulated, leading to losses. But, these stocks can sometimes make you money because they’re from growing companies, and some of these companies have good chances for success.
What are the Advantages & Disadvantages of Investing in Penny Stocks?
Advantages of Penny Stocks:
1. The biggest plus of penny stocks is that they don’t cost much to invest in. You can start investing with a very small amount of money and still get a lot of shares in the company.
2. Buying low-cost shares from certain small companies can be a good move. If you invest early, you could make a nice profit. This could help you build up a lot of money for the future.
3. It spreads out your investments which can help reduce risk and increase profits if you keep your money invested for a long time.
4. When prices change a lot, it can be a good thing. This is because traders can make money from these short-term price changes. Investors who buy and sell strategically use these price changes to their advantage to make a profit.
5. Penny stocks are great for learning, especially if you’re new to trading stocks. They can help you understand how the market works, what’s happening in different industries, and how to read financial reports.
6. They can also make you money quickly because their prices change a lot and very fast. Traders who can predict these changes can make money from short-term trading opportunities.
Disadvantages of Penny Stocks:
1. Penny stocks are very risky. Because they’re not bought and sold a lot and their total value is small, their prices can be easily messed with. This can make them very unpredictable and they can also lose value very quickly.
2. There’s not as much information about these companies as there is about bigger, well-known companies. This can make it hard for investors to find information and figure out what the stock is worth.
3. When dealing with low-cost shares, it can be tough to buy or sell them at the prices you want due to their limited availability.
4. This refers to stocks that don’t have a lot of value or availability, which makes it difficult to buy or sell them.
What are the factors to consider in Investing?
1. Find out the Financial Goals: What you want to achieve with your money affects where you should put it. If you’re looking to make fast cash by trading, don’t put your money in stocks that don’t change much over time.
If you’re looking to invest for a long time and want your investment to grow and earn dividends, then you should consider buying these cheap stocks.
2. Consider Volatility: Volatility is when stock prices change a lot because of different events. Stocks that change a lot are risky. But stocks that don’t change much can be good for long-term investments. Choose based on how much risk you’re comfortable with.
3. Long-term Plan: Keep your eyes on the future. Over time, you won’t have to worry about ups and downs in the market and you’ll also get to see your money grow on its own.
Top Penny Stocks to Invest in for Beginners
(Data as of 13 June 2024)
1. Best Stocks for Beginners with Little Money:
There are many great stocks for beginners who don’t have much money. Small companies often sell their stocks at very low prices, sometimes as low as 30-60 INR per share. These companies can grow a lot in a short time. If you’re a beginner with not much money, these small investments could be a good way to start in the stock market.
Let’s look at some of the best penny stocks in 2024.
1. Indus Towers
Indus Towers is the top company in India for things related to telecom infrastructure. It’s the biggest provider of tower infrastructure in India and has built about 204,212 telecom towers across 22 areas in India. The company also tries to be environmentally friendly in how it operates.
- Sector: Telecommunication
- Open: ₹342.45
- Market Cap: ₹92.01KCr
- 52-wk high: 366.55
- 52-wk low: 141.60
2. Indian Oil Corporation (IOC)
The Indian Oil Corporation (IOC) is a company that works with different types of energy like oil, petrochemicals, gas, and even alternative energy. They have over 60,000 locations in India where people can get fuel for their vehicles. Besides this, they also do a lot of work to help the community, like supporting women, promoting education, taking care of families, and protecting the environment.
- Sector: Gas Company
- Open: ₹160.60
- Market Cap: ₹2.29LCr
- 52-wk high: 196.80
- 52-wk low: 83.55
3. Suzlon Energy
Suzlon Energy is a leading company that provides solutions for renewable energy. They work with things like generators for turbines and solar energy. The company started in 1995 and now they’re in 14 different countries.
- Sector: Wind turbine manufacturer
- Open: ₹40.40
- Market Cap: ₹57.44KCr
- 52-wk high: 50.60
- 52-wk low: 8.20
4. Gail India (GAIL)
Gail India is a company owned by the government that was started on August 16, 1984. It’s one of the largest companies in India that moves gas around. Its main office is in New Delhi. The company does a lot of different things like making oil and gas and creating energy from wind and sun.
- Sector: Energy corporation
- Open: ₹201.10
- Market Cap: ₹1.32LCr
- 52-wk high: 213.65
- 52-wk low: 102.95
5. Punjab National Bank
Punjab National Bank, also known as PNB, is a bank that a lot of people in India like to use. It was the first bank that was completely managed by Indians. This bank has played a big part in helping the banking sector in India grow.
- Sector: Banking/Financial services
- Open: ₹126.75
- Market Cap: ₹1.37LCr
- 52-wk high: 142.90
- 52-wk low: 48.25
6. First Source Solutions
First Solutions Ltd is a company that helps other businesses manage their work. They have over 18,500 workers in 36 locations around the world. They work in areas like banking and finance, healthcare, media, and telecommunications.
- Sector: Digital solution
- Open: ₹191.95
- Market Cap: ₹13.43KCr
- 52-wk high: 228.90
- 52-wk low: 122.15
7. Mishtann Foods
Mishtann Foods is a company that specializes in farming products. They primarily make, process, and sell grains like rice and wheat, with a special emphasis on basmati rice. The company was founded on February 27, 1981, and is located in Ahmedabad, Gujarat. All of their sales are within India.
- Sector: Farming
- Open: ₹18.19
- Market Cap: ₹1.93KCr
- 52-wk high: 25.36
- 52-wk low: 7.05
8. Housing and Urban Development Corporation (HUDCO)
HUDCO is a company that provides financial support for housing and development projects. It was established on April 25, 1970. The company has funded various projects in India, including Special Economic Zones (SEZs), Smart City initiatives, and transportation and road projects.
- Sector: Housing
- Open: ₹231.55
- Market Cap: ₹45.95KCr
- 52-wk high: 242.70
- 52-wk low: 53.10
9. Hindustan Petroleum (HPCL)
Hindustan Petroleum Corp Ltd, or HPCL, is a company that turns crude oil into other products. They make things like oil for lubrication, gas that’s been turned into a liquid, fuel for airplanes, brake fluid, and greases. Their main office is in Mumbai and they’re part of a bigger company called ONGC.
- Sector: Oil and Natural Gas
- Open: ₹497.00
- Market Cap: ₹71.87KCr
- 52-wk high: 594.80
- 52-wk low: 239.20
10. Bharat Electronics
Bharat Electronic Ltd, or BEL, makes electronic items for the Indian military and government. They make things like radars that are used on land, systems for weapons, communication tools for defence, and systems used by the navy. They also sell some of their products to places like the Middle East, Europe, Africa, and Asia.
- Sector: Aerospace and defence electronics
- Open: ₹231.80
- Market Cap: ₹1.70LCr
- 52-wk high: 241.65
- 52-wk low: 105.70
Top Stocks to Invest in for Long-term
(Data as of 13 June 2024)
Want to take advantage of growth that builds on itself over time? It’s easy. You just need to invest in shares for the long term, especially shares that can give you good returns over a long period.
1. Reliance Industries
Reliance Industries, started by Dhirubhai Ambani, is the biggest company in India that isn’t run by the government. It’s involved in a lot of different areas like oil refining, selling stuff in stores, making clothes, and financial services. Its stock is considered one of the top 10 to invest in for the long haul. Plus, the company has been around for almost 50 years, showing its stability.
| Name | Value |
| Open | 2,801.95 |
| High | 2,854.15 |
| Low | 2,800.05 |
| 52 Week High | 3,024.90 |
| 52 Week Low | 2,220.30 |
| Mkt Cap (Rs. Cr.) | 1,921,615 |
2. Tata Consultancy Services (TCS)
TCS is a big deal in India’s tech industry, known for its creative and useful solutions. Right now, TCS makes a profit of 25.3% on what it sells, making it one of the quickest-expanding companies in India.
In the financial year of 2022, TCS made a whopping 1.91 trillion INR in sales. It works with companies both in India and abroad, which means it offers a wide range of tech services.
| Name | Value |
| Open | 3,936.00 |
| High | 3,945.80 |
| Low | 3,892.90 |
| 52 Week High | 4,254.75 |
| 52 Week Low | 3,156.00 |
| Mkt Cap (Rs. Cr.) | 13,97,939 |
3. Infosys
Infosys has been handling systems for more than 40 years, and they’re good at coming up with new ideas and taking care of their tech clients.
They work in more than 50 countries and have made about 16.97 billion dollars in the past year.
| Name | Value |
| Open | 1,426.40 |
| High | 1,433.75 |
| Low | 1,418.05 |
| 52 Week High | 1,733.00 |
| 52 Week Low | 1,242.45 |
| Mkt Cap (Rs. Cr.) | 5.90LCr |
4. HDFC Bank
HDFC Bank is a top bank in India that provides a bunch of services focused on helping its customers.
With more than 6000 branches spread all over India, HDFC Bank offers a variety of financial services like investment banking, personal banking, and institutional banking, among others.
| Name | Value |
| Open | 1,452.25 |
| High | 1,465.50 |
| Low | 1,450.30 |
| 52 Week High | 1,757.50 |
| 52 Week Low | 1,363.55 |
| Mkt Cap (Rs. Cr.) | 11.11LCr |
5. Hindustan Unilever
Hindustan Unilever owns a bunch of famous brands like Dove, Lux, Horlicks, Bru, and so on. Each of these brands is used by thousands and even lakhs of people all over India. In 2018, Forbes ranked it as the 8th most innovative company in the world.
| Name | Value |
| Open | 2,360.60 |
| High | 2,372.30 |
| Low | 2,346.75 |
| 52 Week High | 2,769.65 |
| 52 Week Low | 2,172.05 |
| Mkt Cap (Rs. Cr.) | 5.52LCr |
6. JSW Steel Limited
The steel business is booming fast. So, it’s a good idea to watch this area and the big companies in it. JSW Steel Limited is one of these big companies. They’ve been leading the way in steel for about 40 years and they’re doing well.
The company’s stock lets people make money through dividends that give about a 3.18% return. This makes it one of the top 10 stocks to buy for long-term investments.
| Name | Value |
| Open | 864.15 |
| High | 884.95 |
| Low | 861.20 |
| 52 Week High | 914.00 |
| 52 Week Low | 681.05 |
| Mkt Cap (Rs. Cr.) | 2.15LCr |
7. Asian Paints
Asian Paints, a company that’s been creating innovative products in the paint industry for 75 years, has also made significant strides in the home decor market.
In 2022, more than half of their revenue (51% to be exact) came from their business in various Asian countries. Plus, the company is in a strong financial position.
| Name | Value |
| Open | 2,879.00 |
| High | 2,888.00 |
| Low | 2,842.00 |
| 52 Week High | 3,568.00 |
| 52 Week Low | 2,670.10 |
| Mkt Cap (Rs. Cr.) | 2.75LCr |
8. Bharti Airtel
Bharti Airtel is a global telecom company that offers a wide range of services. These include everything from submarine cables that are strategically placed, to payment systems and music streaming services.
They’re also embracing new technology, providing services in India and Africa. Given their strong financial health, Bharti Airtel could be a great choice for long-term investment.
| Name | Value |
| Open | 1,290.55 |
| High | 1,299.90 |
| Low | 1,280.70 |
| 52 Week High | 1,354.00 |
| 52 Week Low | 783.90 |
| Mkt Cap (Rs. Cr.) | 7.64LCr |
9. ITC
ITC is a company that’s doing well in various sectors, including consumer goods, hotels, packaging, paperboards and specialty papers, and agri-business. This suggests that it has a promising future in the stock market.
Moreover, 94% of stock analysts highly recommend buying ITC stocks. This could be a great opportunity for you!
| Name | Value |
| Open | 430.50 |
| High | 433.30 |
| Low | 428.55 |
| 52 Week High | 499.70 |
| 52 Week Low | 399.35 |
| Mkt Cap (Rs. Cr.) | 5.36LCr |
10. Mahindra & Mahindra
Mahindra & Mahindra is a company that’s expanded across many countries since it started. Its growth over the years shows how well it’s been doing. Right now, its stock price has fluctuated between 1,338.00 INR and 671.15 INR over the past 52 weeks.
Almost 88% of stock market analysts recommend buying stocks from this company. So, it might be a good idea to invest in them if you’re looking for profitable returns in the future!
| Name | Value |
| Open | 2,175.00 |
| High | 2,280.35 |
| Low | 2,175.00 |
| 52 Week High | 2,280.35 |
| 52 Week Low | 1,237.45 |
| Mkt Cap (Rs. Cr.) | 2.72LCr |
Conclusion
Remember, there’s no such thing as a sure thing in the stock market. Even the best-performing stocks come with some risk. So, it’s important to understand your risk level and what you want to achieve with your investments. This can guide you when you’re deciding which stocks to buy as a beginner and invest for the long term.
Disclaimer: The above-shared information is just as investment advice or to understand a little bit better about the shares and the respective company. However, it is especially recommended to consult with a financial professional before investing because investing in stocks is subject to market risk.
