Stocks Under 500 Rs

Why Consider Investing in Stocks Under 500 Rs?

Equity investing can be achieved among many retail investors through affordable stocks. They enable you to join the market without huge amounts of money immediately. Here are the reasons why these low-price shares usually make sense:

• Affordable Entry Point: You do not require a huge amount of investment to begin. Purchasing a stock under 500 Rs provides future investors with a realistic means of learning the market dynamics.
• Diversification: Since the price is lower, you have a chance to diversify your capital into more than one or two companies or industries, thus not relying on one or two holdings.
• Growth Potential: The good shares under 500 Rs are a large number of mid-cap and small-cap shares that are at the growth stage. As time goes by, these companies can grow and become valuable.
• Retail-Focused Opportunities: Since most large institutions like FIIs and DIIs prefer large-cap stocks, affordable ones often attract individual investors who spot potential early.

The key idea is accessibility. You can build a varied, learning-rich portfolio without feeling overexposed financially.

Top 10 Stocks Under ₹500 by Market Cap 2026

Here are the top 10 stocks under 500 Rs.

ITC Ltd

ITC is no longer a tobacco company, it is a diversified conglomerate in the FMCG, hotel, paperboard, and agri business. The consistent growth, stable cash flows and the increasing non-tobacco portfolio has led to its popularity with retail investors.

NTPC Ltd

NTPC is the largest power generator in India, and therefore, it contributes immensely to the energy requirements of the country. The renewable capacity expansion that the company has concentrated on provides a long term growth angle to its otherwise stable business model.

Oil and Natural Gas Corporation Ltd (ONGC)

ONGC is the major oil and gas explorer in India that plays a significant role in the energy security of the country. Its global operations and strong asset base make it a key player in the energy sector.

Eternal Ltd

Eternal Ltd specialises in new chemical solutions and speciality products that serve a wide range of industries. Its emphasis on sustainability and innovation in its products enhances its business resilience in the long run.

Bharat Electronics Ltd (BEL)

BEL is a major defence electronics firm owned by the Government of India. As the government expenditure on defence and exports increases, it’s providing steady growth and profitability.

Adani Power Ltd

Adani Power manages one of the largest portfolios of Indian private thermal power. In recent years, the firm has recorded good financial performance due to its strategic growth and increased efficiency.

Power Grid Corporation of India Ltd

Power Grid operates the national electricity transmission system in India and has ensured steady power supply in different regions. Its controlled business structure and consistent profits make it an ideal choice to conservative investors.

Wipro Ltd

Wipro is one of the leading IT service providers in India that has a global presence. The company is known to be the provider of digital transformation solutions, but still remains strong in the areas of technology and consulting.

Indian Oil Corporation Ltd (IOCL)

IOCL is the largest oil refining and marketing company in India that has an extensive retail network. Its diversification into green energy and petrochemicals makes it well-prepared to meet the changing energy environment.

Coal India Ltd

Coal India is the biggest coal manufacturer in the world which satisfies most of the coal demand in India. Long-term investors like its strategic position in the country’s energy mix and its consistent dividend payouts.

How to Buy & Invest in Stocks Under 500 Rs via Kotak Securities

It is easy to purchase stocks under 500 Rs with Kotak Securities and is intended for both beginner and experienced investors. It takes a couple of clicks to search, analyse and invest with confidence. Here is a simple 4 step process:

• Login: Log in using your Kotak Securities account on the internet or the mobile application. In case you do not have an account, you can create one immediately on the internet.
• Market Watch: Click on the Market Watch section. In this case, you can explore NSE stocks under 500 Rs, check live prices, and fundamental performance data of each company.
• Add Stock & Place Order: Once you have decided a good stock below 500 Rs, add it to your watchlist. Complete the purchase by stating the number of units, the order type (market or limit), and confirm your purchase.
• Track Returns: Monitor your portfolio growth over the years, track price changes and view charts in the Kotak Securities dashboard.

Major Risks of Buying Stocks Below ₹500

There are some risks associated with every opportunity. While stocks under 500 Rs can offer value, investors should also recognise where caution is needed. Here’s what to keep in mind:

• Liquidity Concerns: A significant number of low-priced stocks trade at low volumes. This may complicate making a quick exit at the price you want.
• Risk of Delisting: Small firms are likely to be delisted due to failure in satisfying the exchange criteria including minimum shareholding by the public or performance.
• Permanent Capital Loss: Certain low priced stocks may not recover after declines. The closure, mergers or insolvency of a business can impact your overall capital.
• ASM/GSM Risk: Exchanges may put shares that are below 500 rupees under Additional Surveillance Measures (ASM) or Graded Surveillance Measures (GSM). These structures minimise speculation and manipulation but may reduce liquidity and increase exit difficulty.
• SME Segment Risks: The SME-listed stocks are less transparent and more volatile. They might fail to furnish adequate financial data to allow investors to consider actual performance, contributing to operational and market risk.

Being aware of these risks does not imply that one should not invest in low-priced stocks at all, it simply means that one should be more aware of risks and plan accordingly.

How to Identify Quality Stocks Under ₹500

Not all the shares under 500 Rs are worth purchasing. The idea is to find companies with the right fundamentals despite their low prices.

Identify the most promising ones with this brief checklist:

• Promoter Holding: Identify companies where promoters have a majority (50% and above) share of the company. Long-term growth is reflected by great promoter confidence.
• Low Debt Ratio (<1): A debt-to-equity ratio of less than 1 signifies that the company is not over-leveraged. Less debt is likely to imply more financial stability.
• Earnings Per Share (EPS) Growth: Find out whether there has been a consistent growth in EPS. It is an indicator of profits and business viability.
• Consistent Delivery Percentage: Stocks with high delivery percentages are a sign of actual investor participation and not a result of a speculative transaction.
• P/E Ratio Range: Compare Price-to-Earnings ratio of stock with that of its peers. A reasonable or slightly underpriced P/E may be the correct quality stock under 500 Rs.

Once you use this checklist on a regular basis, you begin to identify fundamentally strong stocks under 500 Rs which might be currently underestimated, yet have the potential to continue growing steadily.

Should You Invest in Stocks Under ₹500 Now?

Investing in stocks under 500 Rs is about balance. You get affordability and growth potential, but you also have to be patient and make smart choices.

Good stocks below 500 Rs can be significant in your portfolio in case you are willing to research and monitor performance on a regular basis. They are particularly useful in helping new investors gain confidence in the market.