Panoramic photos can be amazingly beautiful, covering a wide area that gives nice perspective. Adobe Photoshop is one of the best professional photo editor that has free hand panoramic photo stitcher. However, there are good free tools that let you create similar, nice panoramic photos. Please do try them and check their capabilities.
Hugin
Hugin lets you assemble a mosaic of photographs into a complete immersive panorama, stitch any series of overlapping pictures and much more. See more here

Windows Live Photo Gallery
Using Windows Live Photo Gallery, you can stitch several photos together to create a panorama. This is a great way to capture photos of landscapes and other subjects that are too large for a single photo.
See more here
PhotoSynth
PhotoSynth is an app for Windows Phone and iOS. It makes it easy and fun to capture and share interactive panoramas of the places, people, and events.
See more here
Dermandar
Simple but effective Panorama tool.
See more here
Image Composite Editor
Microsoft Image Composite Editor is an advanced panoramic image stitcher. Given a set of overlapping photographs of a scene shot from a single camera location, the application creates a high-resolution panorama that seamlessly combines the original images.
See more here
PanoramaPlus
Stitch your photos together quickly and easily with PanoramaPlus Starter Edition.

See more here
POS Panorama Pro
Pos Panorama Pro allows you to create panoramic images from series of overlapping photos with just a few mouse clicks
See more here
Clevr
Clevr is a seriously easy way of creating and sharing panoramic photos for free.
See more here
