Penny stocks on the rise: What global investors are buying in 2025

Foreign Institutional Investors (FIIs) have invested in select penny stocks. Let's take a closer look at what they are.

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Penny Stocks 2025

FIIs have a strong influence on the Indian stock market. In the March 2025 quarter, FIIs turned their attention to select penny stocks, typically considered high-risk, low-priced shares. Their recent buying activity in these specific stocks indicates growing interest and potential long-term growth potential. Let's look at five penny stocks that have caught the attention of foreign investors.

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Gensol Engineering Ltd

Another interesting addition is Gensol Engineering Ltd, where FIIs bought a 4.88% stake last quarter. In the recent trading session, the stock closed at Rs 56.79, reflecting a 5% intraday decline. However, with a total market cap of Rs 218 crore, the company remains a significant player in the penny stock sector.

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Navigant Corporate Advisors Ltd

In the March quarter of FY2024-25, FIIs acquired a 1.1% stake in Navigant Corporate Advisors Ltd. This microcap stock has recently shown impressive returns - up 46% year-over-year. During the last market session, the share price stood at Rs 55.67, marking a 0.5% gain. The company currently boasts a market capitalization of Rs 18 crore, making it one of the most affordable yet promising stocks among FII choices.

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Shivam Autotech Ltd

While foreign institutional firms bought only a 0.04% stake in Shivam Autotech, DIIs already hold a larger share of 7.06%. The stock declined by 3.4% in its last trade to Rs 26.54. With a market cap of Rs 323 crore, it stands as a notable penny stock backed by both domestic and foreign institutions.

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Service Care Ltd

Foreign institutional investors also invested in Service Care Limited, acquiring 1.05% of the company's shares in the fourth quarter. Domestic institutional investors (DIIs) also held a 0.39% stake. The stock closed at Rs 58 with a slight 0.01% decline. Its current market capitalization is Rs 77 crore, and the dual investor interest may indicate stable future prospects.

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Nectar Lifesciences Ltd

Finally, Nectar Lifesciences attracted a 0.73% foreign institutional stake in March 2025, up from the previous 0.15%. Trading at Rs 20.85, the stock recently saw a 1% decline. However, with a market capitalization of Rs 460 crore, the increasing foreign stake suggests renewed growth interest.