Mumbai: At least seven penny stocks have turned major wealth destroyers in 2026 so far, tumbling 40% to 70% as volatility spikes and weak fundamentals weigh on performance. Experts warn investors chasing quick gains to remain cautious in the high-risk segment.
The sharp decline in these stocks comes despite their popularity among retail investors looking for high-return opportunities with minimal initial investment.
The underperformers were identified through a screening strategy that focused on companies with a market capitalisation below Rs 1,000 crore, share prices under Rs 20, and a minimum recent trading volume of 5 lakh shares.
Among the worst hit is A-1, which has seen its value erode by 72 per cent so far this year, with its previous close at Rs 14.
SRU Steels has also taken a significant hit, falling 63 per cent in CY2026, while Leading Leasing Finance And Investment Co has declined by 60 per cent during the same period.
Other notable laggards include Evexia Lifecare, down 57 per cent, and Deep Health AI India, which has dropped 56 per cent so far this year.
Padam Cotton Yarns has slipped 53 per cent, while Space Incubatrics Technologies has declined 50 per cent.
Market experts caution that while penny stocks may appear attractive due to their low prices, they often come with elevated risks.
Limited liquidity, sharp price swings, and lack of transparency make them vulnerable to manipulation and sudden downturns.
In the absence of disciplined investment strategies and strong risk management, such stocks can lead to significant losses for investors.
Commenting on Nifty technical outlook for next week, the index is consolidating in the 24,100–24,400 range with immediate resistance near 24,400 and support around 24,000.
“A sustained breakout above this level could extend the rally towards the 24,800–25,000 range,” an analyst said.
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Infographics: Pinaki Paul
–IANS
