Best Stocks Under ₹100 in India

What are Stocks Under Rs 100?

Railway stocks in India represent companies that operate within the railway sector. This includes those involved in building trains, supplying parts, or supporting the network by manufacturing locomotives, coaches, and wagons.

About the Top Stocks Under Rs. 100

1. Suzlon Energy Ltd: Suzlon is a leading Indian wind energy solutions provider, dominating wind turbine installations. 
2. NHPC Ltd: NHPC is India’s largest hydropower development firm, enjoying a near-monopoly in central government-backed hydroelectric projects. 
3. Indian Overseas Bank: Indian Overseas Bank has a stronghold in southern India, especially Tamil Nadu. 
4. Vodafone Idea Ltd: Despite financial challenges, Vodafone Idea remains one of just three major telecom operators in India..
5. Yes Bank Ltd: Yes Bank commands a monopoly-like presence in niche corporate lending sectors and digital banking partnerships.

How to Invest in Stocks Under Rs 100?

Here is how investors may go about investing in the best stocks under 100 in India for the long term:

1. Open a demat/trading/brokerage account. Investors can use smallcase to open a demat account!
2. Conduct research on the top stocks under Rs. 100. Investors can utilise tools like the Tickertape Stocks Screener. It is possible to set the Close Price at a range of Rs. 0 – Rs. 100 on the screener and investors can use the 200+ filters to learn more about the list of stocks under Rs. 100!
3. Place a ‘Buy’ order on the stocks under Rs. 100 of your choosing.

Features of Stocks Under Rs. 100

• Affordability: Stocks priced under Rs. 100 offers an affordable entry point for investors with limited capital.
• Volatility: Stocks priced under 100 rupees tend to exhibit higher volatility. This can present opportunities for short-term traders to capitalise on price fluctuations in the market.
• Risk and Reward: While stocks under Rs 100 may offer the potential for high returns, they also come with higher risk due to their volatile nature and lower liquidity compared to higher-priced stocks.
• Opportunity for Growth: Some stocks priced under Rs 100, including the best stocks in India for short term, may represent companies with strong growth potential or turnaround prospects.

Who Should Explore Stocks Under Rs 100?

1. Individuals seeking affordable investment opportunities may find stocks under Rs 100 appealing. 
2. These stocks can be attractive for novice investors looking to start building a portfolio with a limited budget. 
3. Additionally, seasoned investors who wish to diversify their holdings or explore emerging companies may also consider investing in a share under 100 rupees.

Benefits of Investing in Shares Under 100

• Lower Initial Investment requirement: The best shares under Rs 100 can offer investors the opportunity to enter the market with a smaller initial investment.
• Diversification Potential: Investing in a range of the best shares under 100 can provide diversification benefits to investors, as these stocks may belong to the best sectors for stocks under 100 and industries. 
• Power of Compounding: Value investing leverages the advantages of compounding. When you invest in the best stock under 100 over a long period, the returns and dividends you earn are reinvested.
• Low-Risk Investment Strategy: Value investing is also known for being one of the least risky strategies in the stock market. It follows the principles of buying and holding and is highly regarded by investors and shareholders.

Risks of Investing in the Best Stocks Under 100

• Highly Volatile: Stocks priced under Rs. 100 are often highly volatile. Their prices can fluctuate dramatically over short periods, which can result in substantial losses for investors. The high volatility makes it challenging to predict price movements, increasing the risk of investment.
• Scams and Fraudulent Activity: Penny stocks, which can often fall under this price range, are susceptible to scams and fraudulent activities. Less than 100 Rs shares can be manipulated by unscrupulous individuals looking to profit from unsuspecting investors. 
• Large Buy Order: Placing large buy orders for these shares below Rs 100 can be problematic. Due to their low liquidity, significant buy orders can cause sharp price increases, making it difficult to purchase even the best share under 100 at a reasonable price. 
• Not that Fundamentally Strong: Stocks under Rs. 100 are usually small-cap stocks. They may belong to companies with uncertain financial health, weak business models, or limited growth prospects. 

Factors to Consider Before Investing in the Best Stock Under 100 Rs

• Value Investing: Becoming a value investor may not require a substantial amount of money. This might be due to your current financial situation becoming significant when adopting a long-term perspective on the stock market with patience.
• Advantages of Compounding: The greatest advantage of compounding is its ability to patiently grow even the smallest amount of money into a lump sum. You can keep your investment intact by holding onto the returns from top performing stocks under 100 rupees.
• Low-Risk Investment Strategy: This strategy creates long-term capital by purchasing and holding the best shares below 100. Value investments expand the investor’s portfolio because of their low volatility.