Volatile Stocks Meaning?
Before knowing the most volatile stocks in India, you must know about the meaning of Volatile. Volatile stock refers to the stocks which fluctuate the most. In simple terms, the stocks have a decent amount of swing in the intraday movement. These stocks fluctuate every now and then and are generally more fluctuating than the benchmark index and other exchange stocks.
Why Should We Look For Volatility?
If we trade a stagnant stock, there is a chance of little or no profit. If the stock moves 0.25% per day, how much money can you make from it? But on the other hand, if the stock moves 3% to 5% per day, there is a high chance that a trader can pull out 2% from it. So make a list of volatile stocks and trade them so that you can make serious money from intraday trading.
If you want to be a champion trader, you should not do the same things other traders do. We all know that champions don’t do different things; instead, they do the same thing differently. So if the other traders are wasting their time and money trading in stagnant stocks, you switch to our highly volatile stocks NSE list, and you will have a volatility edge over other traders.
How to Find Most Volatile Stocks in India (NSE)?
NSE or National Stock Exchange is one of the leading exchanges in India. Here, we will find out some of the high Beta or most volatile stocks. Based on the Beta values, Weights of securities in the index are assigned.
What is Beta in the Stock Market?
Beta can be calculated using regression analysis. This content will surely give you an analytical view of the most volatile stocks in India. By using it, investors can get a profitable return from 2019. However, in simple words, by calculating Beta, one can judge the volatility of a stock and its systematic risk. After multiplying the beta value of a stock with the movement of an index, one can determine the desired stock’s amount.
How to find High Beta Stocks using a Stock Screener?
Let us use a stock screener to find high beta stocks. As of 27th June 2021, the image also reflects its current price, Market Capitalization, etc. Volatility can benefit investors from every point of view. In the Stock Market, it performs well. Often Market volatility is seen through the VIX or the volatility index. We know that Beta is a stock volatility measure of the market. If a stock swings many times, it has a beta above 1.0. For example, a 1.20 beta indicates the stock is 20% more volatile than the market.
Other Ways to Find the High Beta Stocks in NSE?
There is an index called Nifty High Beta 50. This is also made of a basket of diversified but high beta stocks. You can follow this index and its components for some highly liquid and heavily movable stocks exchange. Here are some active components of Nifty High Beta 50.
Should we invest in Volatile Stocks?
- The best part of volatile stocks is that volatility can be measured and acted upon strategically to earn profits.
- The upside benefits are obvious and comparatively higher than a simple long position in stock for a longer duration.
- The actual question is when we are traveling in a bus, whether we want a bumpy ride full of hills and valleys or we want a straight smooth ride.
- By nature, we are loss-averse investors, and even according to the Prospect theory of behavioral finance, we prefer gain over probable gain.
- The derivatives and options market is also one of the ways where we could invest. Most of the derivatives market heavily makes money on volatility.
- Talking about loss aversion, if we could time the market as the information available to us plenty and be an active investor, a small corpus of funds can be kept to earn huge profits.
- Generally, these stocks are from mid-cap and small-cap segments as these segment stocks exhibit high price movements.
List of Top 10 most Volatile Stocks in India –
1. Sun Pharma
Sun Pharmaceutical Industries Limited is an India-based multinational pharmaceutical company and the most Volatile Stocks in India. The Company manufactures pharmaceutical formulations and active pharmaceutical ingredients (APIs) and sells these products primarily in India and the United States.
It has recently seen a price swing of ₹680 to ₹400. The fall was due to some US non-approval of drugs and governance issues. This stock had also climbed ₹680 in 3 months.
2. Suzlon Energy Ltd.
Suzlon Energy Ltd. is a wind turbine supplier based in Pune. This stock was once one of the picks by Rakesh Jhunjhunwala, which was later discarded due to continuous losses the Company posted on its books. The Company is recovering and has recently posted a positive operating profit.
This recovering stage has given the stock huge price swings of almost 25% of the base price in the market.
3. Garden Silk Mills
Garden Silk Mills Ltd is one of the leaders in the Indian textile industry, with a specialty in Polyester Filament based textiles and yarns. This stock has seen ups and downs of almost 16% of its current market price at a much more frequent rate. The Company has comparatively a small market capitalization of nearly ₹90 crores.
4. Madhucon Projects Limited
Madhucon Projects Limited is one of India’s leading Engineering, Procurement, and Construction (EPC) and Build, Operate and Transfer (BOT) Contractors; the Company has executed wide-ranging projects in infrastructure projects in India.
The volatility of the stocks is 15% of the current market price.
5. KM Sugar Mills
The Company is in the business of manufacturing sugar, distillery products, and the generation of electricity. The Company has a comparatively large sugar plant capacity and electricity generation capacity.
The fluctuation of the stock price was almost 15% of the current market price. The stock had 3 spikes in a year, and the max percentage change in upside movement was almost around 60%.
6. 3i InfoTech Ltd
The Company operates in more than 50 countries across 4 continents. IP-based software solutions and a wide range of IT services have successfully enabled 3i Infotech to streamline customers’ business operations globally.
The price volatility is 14% of the base market price. This stock had many peaks and valleys in a year.
7. GVK Power & Infrastructures Ltd.
This wing of the GVK group deals with power and infrastructure projects throughout India. The power sector performance in this current year has been a prime reason for the stock volatility.
The Company has a high volume of trade of getting executed due to the strength and capabilities of the Company proven historically. The price volatility of the stock has been 13% of the base market price. The long-term effect on the stock price is a fall from the FY 18 ending price.
8. Jubilant Industries
Jubilant Industries Ltd. has a business in Agricultural and Performance Polymers business. This Company is under the parent Jubilant Bhartia group.
The price volatility of the stock was 13% of the base market price. The stock had a 37% gain in a single rush and then had a 50% drop.
9. Magma Fincorp stock
Magma Fincorp is an Asset Finance Company operating in 22 states across India. It provides various financial solutions for financing vehicles and other agricultural-related products and personal finance requirements.
The price volatility of the stock was almost 11% of the base market price. The 52-week high for this stock was ₹193. At the same time, 52 weeks low was less than 50% of the high, ₹81. The stock showed a bull sign at the start of the financial year and then delivered a mean reversal for the bear case.
10. Take Solutions Limited
This is a management consulting company with expertise in life science and supply chain engineering technology services. Take solution stock trades in good volume indicating acceptability by the market. The price volatility is around 19%.
The stock had a 52-week high of ₹308, and then it followed a bearish trend with small upsides along the way. Also, the stock has now seen a mean reversal toward bear recovery.
All the stocks discussed above exhibit the most volatile stocks in India; hence they are apt for trading in the short term, like intraday trade or trading days of 2-3 days. These stocks are a top pick for futures and options investors. Investing in these stocks can reap a large chunk of money, but they have to be actively monitored. I would recommend a small technical analysis study for these stocks before investing. These stocks act as the catalyst to corpus building, as a catalyst needs to act with care; otherwise, the chemical reaction can show disastrous results. The same is the condition with these stocks.
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