Investing Wisely in NSE or BSE: Best Stocks for Beginners Below Rs. 100
As a beginner in the world of stock trading, it's essential to make informed decisions when choosing stocks to buy from the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE). One of the key strategies is to look for stocks priced below Rs. 100, which can be more accessible and potentially rewarding in the long term. This article explores why investing in such stocks can be beneficial and which stocks to consider for a three-month horizon.
Why Invest in Stocks Below Rs. 100?
Investing in low-priced stocks, also known as 'H-P' (High-Priced) stocks, can offer several advantages, especially for beginners. Holding stocks priced below Rs. 100 allows you to accumulate more shares with your available funds, increasing your exposure to potential gains. This approach can be particularly advantageous when compared to investing in high-priced stocks, as low-priced stocks can offer higher percentage gains over the long term.
Advantages of Low-Priced Stocks
Accumulate More Shares: Given a fixed amount of investment, you can buy more shares of low-priced stocks compared to high-priced stocks. This increases the potential for gains through percentage hikes.
Flexibility in Investing: If you lack sufficient funds to invest in high-priced stocks, low-priced stocks offer a flexible way to participate in the market.
Higher Percentage Gains: Historically, low-priced stocks can offer higher percentage gains compared to high-priced stocks, making them more attractive for long-term investment.
It's important to note, however, that low-priced stocks do not guarantee higher returns. They can pose risks, especially if the fundamentals of the company do not support a sustained increase in stock prices. Therefore, careful analysis and long-term thinking are crucial.
Stocks Below Rs. 100 for Three-Month Horizon
With the three-month horizon in mind, a few stocks stand out as worth considering. These stocks are currently at a relatively high altitude from their low price levels and are anticipated to experience significant hikes in the near future. Here are three stocks below Rs. 100 that you might want to explore:
1. NBCC
NBCC (National Building Construction Corporation Limited) is a leading construction company in India. With its solid financials and robust project pipeline, NBCC has the potential to see significant growth in the next few months. Currently trading at Rs. 96.75, NBCC is a compelling buy for those seeking promising returns in a short-term timeframe.
2. BHEL
BHEL (Bharat Heavy Electricals Limited) is a major player in the power sector. Known for its innovative and high-quality products, BHEL is expected to benefit from the ongoing infrastructure development in India. Its low price of Rs. 80 makes it an attractive option for short-term investors looking to capitalize on potential gains.
3. RELIANCE HOME FINANCE
Reliance Home Finance is a subsidiary of Reliance Industries, one of India's largest companies. With a current price of around Rs. 90, it presents a compelling opportunity for short-term investors. The company's strong brand and financial health make it a notable player in the housing finance sector.
Conclusion
In summary, investing in stocks below Rs. 100 can offer significant advantages, including greater flexibility in investment and the potential for higher percentage gains. However, it's crucial to conduct thorough research and consider holding periods before making any investments. As a beginner, it's recommended to study and understand the fundamentals of the companies you consider investing in.
Based on your research, I recommend exploring the following three stocks: NBCC, BHEL, and RELIANCE HOME FINANCE. These stocks offer a mix of potential for short-term gains and long-term growth. By accumulating shares at the dip, you can position yourself for better returns depending on the market conditions and the company's performance.
Remember to conduct comprehensive research and consider other factors such as market trends, economic conditions, and company-specific news. Happy investing!