Indian penny stock boom sparks 4,300% gain in risky firm

Trading influx: Pedestrians walk past the Bombay Stock Exchange building in Mumbai. Retail money is chasing up penny stocks like crazy in the country. — AFP

MUMBAI: Retail investors’ frenzy over small stocks in India has reached such extremes that shares of some companies that aren’t booking any sales, let alone profits, are going through the roof.

These include Transglobe Foods Ltd, a fruit-jam maker that has skyrocketed more than 4,300% this year, and real-estate services firm Shree Precoated Steels Ltd, which has jumped over 1,300%. Both companies reported losses on no sales in the latest fiscal year.