Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

2 Stocks to BUY
As Nifty50 Heads Towards 40,000


Get Full Details


**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

IT Sector Penny Stocks

The IT sector has been one of the sectors that has driven the stock market rally in the past decade. Both the BSE IT Index and NIFTY IT Index have given multibagger returns.

As revenue for the IT sector is mainly export oriented, it is largely impacted by the depreciation of the rupee versus the US dollar. A depreciating rupee is beneficial for the sector and vice versa and IT companies have various hedging policies that help them benefit from it.

Alongside the well-known IT giants like TCS and Infosys, there are IT businesses that are classified as IT sector penny stocks.

Penny stocks have low market capitalisation. These stocks typically trade at a share price less than Rs 100 and often less than Rs 50.

Investors should be careful while investing in penny stocks as it is a risky endeavour and may entail higher trading costs.

So, it is important to do your research. Understand the sector and analyse the company before you invest in it.

List of IT Sector Penny Stocks

Company Market-cap as on July 2022 (Rs m)
3I Infotech 7,123
HCL Infosys 5,267
Megasoft 2,612
Rolta India 693
Data Source: Equitymaster

Debt ridden Rolta India is a classic example of a fundamentally weak stock.

As an investor even while investing in penny stocks, you should look out for fundamentally strong penny stocks.

Alternatively, you can browse through the Equitymaster stock screener to access an exhaustive list of IT sector stocks using a variety of filters like low debt to equity, high growth, high ROE, low PE ratio.


How to Find the Best Penny Stocks to Buy Today

Sep 26, 2023

A checklist to narrow down the best penny stocks to buy in the stock market.

Will Junk Stocks Perform Better Than Fundamentally Strong Stocks in This Market?

Sep 12, 2023

My Contrarian View on the Smallcap Rally.

Top Performing Penny Stocks of August 2023

Aug 28, 2023

These penny stocks have rallied over 100% in a month.

This Penny Stock Deserves to be on Your Watchlist

Aug 21, 2023

Keep an eye out for this fundamentally strong penny stock

Top 5 Penny Stocks Held by LIC. Are They Worth a Look?

Aug 7, 2023

LIC has emerged as a silent force over the years. The insurance major's strategic investment decisions have caught the attention of seasoned traders and investors alike.

5 Penny Stocks with High Dividend Yields up to 17%. Are They Worth It?

Jul 24, 2023

These five penny stocks gave up to 17% yields in FY23. Take a look...

Can This Little-Known Small Cap Company be an 'All Or Nothing Stock'?

Jul 21, 2023

Find out what's in store for this small cap financial stock trading at distress valuations.

Top 5 Multibagger Penny Stocks of 2023 So Far. Take a Look...

Jun 27, 2023

Some penny stocks have rallied up to 700% while gains ranging 200-400% has become the norm.

My Contrarian View on the Smallcap Rally

Jun 12, 2023

Capitalise on the smallcap rally by following this all-important rule.

Undervalued Gems: 3 Penny Stocks Hitting 52-Week Lows. Time to Take a Look?

May 18, 2023

Investors must keep a watchful eye on stocks trading at their 52-week lows. If chosen carefully, they could potentially generate faster returns.

Penny Stocks to Avoid in the Stock Market Today

Sep 25, 2023

A 5-point checklist to avoid bad penny stocks.

Vodafone Idea - Can Idea Change Your Life?

Sep 6, 2023

What is the right way to trade Vodafone Idea?

Is Suzlon Energy the Best Wind Energy Stock Right Now?

Aug 28, 2023

Believe it or not, Suzlon Energy is charting a comeback story. Here's what technical indicators suggest.

My Contrarian View on Smallcap Stocks

Aug 11, 2023

Will junk stocks do better than fundamentally good stocks in this market?

Will Junk Stocks Do Better Than Fundamentally Good Stocks in This Market?

Jul 28, 2023

My contrariant view on the smallcap rally.

Top 5 Penny Stocks with Rising Promoter Holding. Here's a Watchlist...

Jul 21, 2023

Keeping track of the rising promoter holding could be a starting point to discover some gems among penny stocks.

Top 5 Multibagger Microcap Stocks of 2023 So Far. Take a Look...

Jul 13, 2023

These companies are part of Nifty Microcap 250 index, which distinguishes smallcaps and microcaps.

Invest in Soup and Salad Stocks in this Market

Jun 27, 2023

My contrariant view on the smallcap rally.

Suzlon Energy Share Price: Technical Breakout Suggests Bullish Trend

Jun 8, 2023

Does the recent technical breakout in Suzlon suggest this could be a new beginning for the wind energy player? Read on...

Top 5 Breakout Penny Stocks to Add to Your Watchlist

Apr 11, 2023

Breakout penny stocks are famous for generating extremely fast returns. This makes them popular among investors who seek high-risk, high-reward investment opportunities.