High Volatile Stocks of Nifty 500 (2024) (2024)

Last Updated on Sep 11, 2024 by Harsh*t Singh

The volatility of a stock represents the degree of risk associated with it. Understanding the most volatile stocks can help you manage risk and balance your portfolio effectively. This article explores what volatile stocks are, how to identify the most volatile stocks on the NSE, and highlights the best high volatile stocks of the Nifty 500. Additionally, we’ll explore the filters used on the Tickertape Stock Screener to compile this list.

What are Volatile Stocks?

Volatility in the stock market indicates the movement in a stock’s price relative to its original value or in comparison to the overall market. Volatile stocks frequently experience significant price changes. For intraday traders, high volatility stocks might mean large price swings within a single day, while for others, it could involve substantial changes in trading volumes over time.

Most Volatile Stocks in India (2024)

Note: The data on highly volatile stocks is dated 10th September 2024. The stocks are based on the following filters used on the Tickertape Stock Screener:

• Stock Universe: Nifty 500
• Volatility: High (Sort from highest to lowest)
• Beta: High

🚀 Pro Tip: Use Tickertape’s Portfolio Analysis to assess your investment portfolio’s diversification and performance.

How to Invest in Stocks with smallcase?

Looking to invest in high volatile stocks experiencing strong price momentum?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

Among 500+ smallcases, here’s the top smallcases you can check out:

Omni AI-Tech Global – Artificial Intelligence smallcase by Omniscience Capital

House of Tata smallcase by Windmill Capital

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

• Disclosure for Omni AI-Tech Global – Artificial Intelligence
• Disclosure for House of Tata

Details on the filters used to get the list of most volatile stocks

• Volatility: Volatility refers to the fluctuations in the value of a stock from its original value. It expresses the degree of risk associated with a security’s price fluctuations. This parameter is particularly relevant when evaluating high volatility stocks on the NSE, as it helps investors and traders assess price changes and forecast future moves.
• Beta: When it comes to finding the most volatile stocks on the NSE, Beta is one of the most important indicators to consider. It measures a stock’s volatility in relation to the overall market. A Beta of more than 1 signifies that a stock is more volatile than the market. High-beta stocks are usually considered riskier. Hence, when you are looking at the most volatile stocks, Beta is an important indicator to consider.

Housing and Urban Development Corporation Ltd (HUDCO)

Founded in 1970, Housing and Urban Development Corporation Ltd (HUDCO) is a government-owned entity in India specialising in providing long-term finance for the construction of houses for residential purposes, urban development programs, and infrastructure projects. HUDCO is a premier techno-financing company in the housing and infrastructure sectors.

As of 10th September 2024, HUDCO has a market capitalisation of Rs. 50,427.86 cr. and a stock price of Rs. 251.90. The company boasts a PE ratio of 23.82. The stock exhibits a high volatility of 66.91% and a beta of 1.70, suggesting significant sensitivity to market movements.

HUDCO reported its financial results for the quarter ending March 2024, showing net sales of Rs. 2,065.22 cr., up 11.49% Y-O-Y. The company’s revenue for the quarter grew by 17.81% to Rs. 2,194.04 cr., and net profits increased by 9.55% to Rs. 700.16 cr. These positive results have contributed to a robust performance in the stock market. Additionally, the company has declared dividends amounting to Rs. 4.60 per share over the past year, offering a dividend yield of 1.60%. Learn more about its financial performance here.

MMTC Ltd

Established in 1963, MMTC Ltd (Metals and Minerals Trading Corporation of India) is one of India’s two highest earners of foreign exchange and the country’s largest international trading company. It deals in the export and import of primary and processed minerals, metals, precious metals, coal, fertilisers, and agro products.

As of 10th September 2024, MMTC Ltd has a market capitalisation of Rs. 14,128.50 cr. and a stock price of Rs. 94.19. Being one of the most volatile stocks on the NSE, the company has a PE ratio of 73.52, reflecting a high valuation, and exhibits a high volatility of 65.59% with a beta of 1.60. Learn more about the stock’s performance here.

ITI Ltd

Founded in 1948, ITI Ltd is a government-owned telecommunications equipment manufacturer in India. It operates under the Ministry of Communications and is a key player in the telecom sector with state-of-the-art manufacturing facilities spread across six locations in India. Now, let’s look at some technicals for the stock.

As of 10th September 2024, ITI Ltd has a market capitalisation of Rs. 27,197.90 cr. and a stock price of Rs. 283.05. The company has a negative PE ratio of -47.81, reflecting its recent financial challenges. The stock exhibits high volatility at 65.39% and a beta of 1.05, indicating higher market risk and responsiveness compared to the market.

Recently, ITI Ltd experienced significant stock price growth, jumping 34% in just two days, attributed to the launch of its new product line, branded as ‘SMAASH.’ This line includes laptops and micro PCs developed in partnership with Intel Corporation. The products are designed to meet international standards and have already gained traction in the market, winning tenders against major brands.

Furthermore, ITI has won two significant tenders from Kerala Infrastructure and Technology for Education (KITE), supplying approximately 9,000 laptops to government schools in Kerala. Learn more about the stock events here.

NBCC (India) Ltd

Established in 1960, NBCC (India) Ltd is a government-owned civil engineering and construction company operating under the Ministry of Housing and Urban Affairs. It plays a crucial role in real estate development, project management consultancy, and engineering procurement & construction (EPC) services, executing large-scale projects across India and internationally.

As of 10th September 2024, NBCC (India) Ltd. has a market capitalisation of Rs. 31,260.60 cr. and a stock price of Rs. 173.67. The company has a PE ratio of 77.85, indicating a solid valuation. The stock exhibits high volatility at 62.13% and a beta of 1.63, reflecting its sensitivity to market movements. Learn more about its financial performance here.

Rail Vikas Nigam Ltd (RVNL)

Rail Vikas Nigam Ltd (RVNL) was established in 2003 as a public sector enterprise under the Ministry of Railways. The company focuses on the development and implementation of railway infrastructure projects across India. Recently, RVNL awarded a significant construction contract for the Yavatmal-Nanded new Broad Gauge line, a crucial project aimed at enhancing connectivity in Maharashtra. The contract, valued at approximately Rs. 382 cr., includes construction of roadbeds, bridges, and tunnels.

As of 10th September 2024, Rail Vikas Nigam Ltd has a market capitalisation of Rs. 1,17,365.78 cr. and a stock price of Rs. 562.90. The company has a PE ratio of 74.55, reflecting positive earnings expectations. Due to the stock’s high volatility of 57.89%, and a beta of 1.51, this stock is considered as one of the most fluctuating stocks in India. Learn more about the performance of the stock in comparison to its peers here.

Mazagon Dock Shipbuilders Ltd

Founded in 1934, Mazagon Dock Shipbuilders Ltd is a premier government-owned shipbuilding company operating under the Ministry of Defence in India. The company specialises in constructing warships, submarines, and offshore platforms for the Indian Navy and other clients. Its expertise in complex shipbuilding and maintenance has made it a key player in India’s defence and maritime sectors.

As of 10th September 2024, Mazagon Dock Shipbuilders Ltd has a market capitalisation of Rs. 87,758.34 cr. and a stock price of Rs. 4,351.15. The stock is trading with a PE ratio of 45.31, reflecting stable earnings growth. It also displays significant volatility at 61.53%, with a beta of 1.49, suggesting the stock is considerably sensitive to market fluctuations. Explore more about the stock here.

Recently, the company’s stock surged in a short span due to the successful completion and delivery of a new stealth frigate for the Indian Navy under Project 17A. Additionally, Mazagon Dock secured a major contract to build next-generation submarines, further strengthening its order book and reinforcing its leadership in defence shipbuilding.

Vodafone Idea Ltd

Formed in 2018 by the merger of Vodafone India and Idea Cellular, Vodafone Idea Ltd (Vi) is one of India’s major telecommunications service providers. The company offers a range of services, including mobile voice and data services, enterprise solutions, and a growing suite of digital offerings.

As of 10th September 2024, Vodafone Idea Ltd has a market capitalisation of Rs. 92,003.76 cr. and a stock price of Rs. 13.20. As one of the most volatile stocks on the NSE, the company has a negative PE ratio of -2.95, reflecting its ongoing financial struggles. The stock exhibits high volatility at 61.32% and a beta of 1.07, indicating a significant degree of market risk.

Learn more about the performance of the stock in comparison to its peers here.

BEML Ltd

Established in 1964, BEML Ltd (formerly Bharat Earth Movers Limited) is a government-owned company operating under the Ministry of Defence. It is a leading manufacturer of heavy equipment for sectors such as defence, railways, and mining. BEML’s product range includes military equipment, rail coaches, metro cars, and mining machinery, making it a key player in India’s industrial and defence infrastructure.

As of 10th September 2024, BEML Ltd has a market capitalisation of Rs. 16,333.81 cr. and a stock price of Rs. 3,922.20. The company’s PE ratio stands at 57.96, indicating positive investor sentiment around its growth potential. The stock displays considerable volatility at 59.53% and a beta of 1.59, reflecting its higher responsiveness to market trends.

Recently, BEML’s stock has been on an upward trend, driven by the news of its successful delivery of metro rail coaches for several key urban projects, including those in Mumbai and Bangalore. Moreover, BEML has been awarded a significant contract for supplying military vehicles and equipment, enhancing its position in both the defence and infrastructure sectors. Learn more about the performance of the stock here.

Zee Entertainment Enterprises Ltd

Founded in 1992, Zee Entertainment Enterprises Ltd (ZEEL) is one of India’s largest media and entertainment companies. It is part of the Essel Group and operates a portfolio of entertainment channels across various genres and languages. In recent months, Zee has faced several challenges and significant developments:

1. Merger with Sony: Zee Entertainment withdrew its application for the merger with Sony from the National Company Law Tribunal (NCLT). This decision was influenced by ongoing arbitration proceedings and strategic realignments. The merger, which was initially expected to be one of the largest in the Indian media sector, was called off, leading Zee to seek $90 mn in termination fees from Sony.
2. Management and Restructuring: Zee has undertaken significant restructuring efforts, including a 20% salary cut for Managing Director and CEO Punit Goenka and a 15% reduction in overall headcount. The company aims to improve its EBITDA margins and streamline operations amid challenging market conditions.

As of 10th September 2024, Zee Entertainment Enterprises Ltd has a market capitalisation of Rs. 12,777.79 cr. and a stock price of Rs. 134.42. The company has a high PE ratio of 90.35, indicating strong investor expectations. The stock has high volatility at 59.50% and a beta of 1.34, reflecting significant market sensitivity. Learn more about the stock here.

Inox Wind Ltd

Founded in 2009, Inox Wind Ltd is a leading player in India’s renewable energy sector, specialising in wind energy solutions. The company provides a range of services, including wind turbine manufacturing, project development, and operation & maintenance. Inox Wind has installations across various wind-rich states in India, contributing significantly to the country’s renewable energy capacity.

As of 10th September 2024, Inox Wind Ltd has a market capitalisation of Rs. 30,516.60 cr. and a stock price of Rs. 234.06. The stock trades at a PE ratio of -132.51, reflecting the company’s financial challenges. The company’s stock is highly volatile at 59.30%, with a beta of 1.86, indicating higher sensitivity to market changes and investor sentiment around renewable energy. Check out the stock’s performance in comparison to its peers here.

Features of the Most Volatile Stocks to Invest in India

Here are some features of the most volatile stocks:

• Frequent and Substantial Price Swings: These stocks often exhibit large price movements within short periods. For instance, ITI Ltd and Mazagon Dock Shipbuilders Ltd have shown significant intraday price swings in recent months.
• High Beta Values: Stocks with a beta greater than 1 are more volatile than the broader market. Inox Wind Ltd, with a beta of 1.86, and Housing and Urban Development Corporation Ltd (HUDCO), with a beta of 170, are prime examples of high beta stocks.
• Smaller Market Capitalisation: Smaller companies tend to be more volatile due to lower trading volumes and market liquidity. Stock like ITI Ltd is an example of smaller-cap stock with high volatility.
• Sensitivity to News and External Events: High volatility stocks are extremely responsive to the news and external factors, causing rapid price changes. For instance, the recent regulatory scrutiny of Zee Entertainment Enterprises Ltd led to significant price fluctuations.
• Increased Trading Volume: High trading volumes indicate active buying and selling, leading to price volatility. ITI Ltd, Zee Entertainment Enterprises and Inox Wind Ltd have seen increased trading volumes, which is contributing to their volatility.
• Irregular or Unpredictable Earnings: Companies with erratic earnings reports often see volatile stock prices. Vodafone Idea Ltd and Mazagon Dock Shipbuilders Ltd have reported irregular earnings, leading to higher volatility.
• Industry-Prone Rapid Changes or Technological Advancements: Sectors undergoing significant changes or innovations tend to have more volatile stocks. Companies in the telecom sector, such as Vodafone Idea Ltd, is a prime example.
• Historical Volatility: Stocks with a history of large price swings are likely to continue being volatile.

How to Identify Highly Volatile Stocks?

When assessing the best volatile stocks, consider the risk-return ratio and use the Beta indicator to gauge stability:

• A Beta of 1: Indicates the stock’s volatility is on par with the market.
• A Beta > 1: Indicates the stock is more volatile than the market.
• A Beta < 1: Indicates the stock is less volatile than the market.

Factors to Consider Before Investing in High-Volatile Stocks

Fluctuating stocks may have the potential for higher returns, but they also come with more risk. So, it’s smart to consider the factors mentioned below before investing.

• Risk tolerance: It is one of the most important factors to consider before investing in fluctuating shares. Assessing your risk tolerance levels can help you understand if you are comfortable with the high price swings associated with highly volatile stocks.
• Investment timeframe: High volatile stocks are often considered for the short term. Hence, it may be wise to examine your investment goals and their timeframe and check if they align with the short-term nature of highly volatile stocks.
• Fundamental analysis: When you invest, take a close look at the company’s important numbers like profits, money flow, and debts. Understanding these basics is crucial, especially when a stock is volatile. It may help you make sense of the company’s core strengths and weaknesses.
• Market conditions: Reflect on prevailing market conditions and specific events or factors influencing the performance of highly volatile stocks. Consider the broader volatility landscape in the market.
• Diversification: Diversification means spreading your money across different types of investments. When dealing with high volatility stocks, it’s smart not to put all your money in just one of these volatile stocks. This helps lower the chances of losing a lot if that one stock doesn’t do well. So, spreading your money around different stocks can help protect your overall investment and make it more stable.
• Risk management: It is crucial to know in advance when you want to start and stop investing. Use stop-loss orders to limit how much money you could lose. Also, figure out the balance between how much risk you’re taking and the rewards you want. Make a good plan to manage risks and keep your money safe. It is always worthwhile to consult a financial advisor who can help you manage risks while investing.
• Research and analysis: Tools and resources help you analyse how high volatile stocks performed in the past and their up-and-down patterns. For this purpose, the Tickertape Stock Screener is equipped with over 200 filters, so you can narrow down your search based on your preferred filters. You can also create custom filters. Further, each stock page is overwhelmed with information about the stock performance, insights, a Scorecard, future predictions, and more. List high volatile stocks based on your preferred criteria NOW!
• Market sentiment: Consider the prevailing sentiment in the market, as it can significantly impact the volatility of stocks. Be attuned to market sentiment indicators and news that may influence stock prices. To check the market mood of the day, you can check out the Market Mood Index, which takes into account six important factors to give a complete picture of emotions driving the market and share market mood in terms of fear and greed. Check it out now!
• Earnings outlook: Evaluate the earnings outlook for the companies associated with highly volatile stocks. Positive or negative earnings forecasts can influence investor sentiment and stock prices.

Advantages of Investing in Highly Volatile Stocks

• High Return Potential: Significant price swings can lead to substantial profits.
• Short-term Gains: Frequent price movements provide opportunities for active traders, particularly intraday traders.
• Lower Entry Costs: Many high volatility stocks on the NSE, from mid-cap and small-cap companies, are available at lower prices.

Disadvantages of Investing in Highly Volatile Stocks

• High Risk: The potential for large losses is significant. Even the top volatile stocks on the NSE can experience rapid declines, sometimes more severe than market downturns.
• Unpredictability: High volatility stocks can be challenging to predict, making investment risky. Their price movements can be erratic, influenced by external factors beyond the company’s control.
• Management Issues: Poor management decisions or failing to meet targets can result in significant value drops, even if the broader market is performing well. This unpredictability can cause substantial losses for investors.
• Emotional Stress: The rapid and significant price changes can lead to emotional stress and impulsive decision-making. Investors might find it difficult to stick to their long-term investment strategies amidst frequent volatility.

Why Do People Invest in High Volatile Stocks?

Investors are attracted to high volatile stocks for potential quick profits from rapid price movements. Day traders, in particular, capitalise on these short-term gains. Investing in the most volatile stocks in the Nifty 500 can also add diversity to a portfolio, offering a mix of risk and potential long-term returns. However, this comes with significant market risk, necessitating careful research and risk management.

Tips for Investors While Investing in Highly Volatile Stocks

• Conduct thorough research on the stock, considering past performance, market trends, and company fundamentals.
• Evaluate your comfort with risk before investing.
• Align your investment goals with the short-term nature of highly volatile stocks.
• Diversify your investments to reduce risk.
• Implement stop-loss orders to limit potential losses.
• Stay informed about market news, company updates, and economic indicators.
• Consider prevailing market conditions and specific events influencing the stock before making decisions.
• Approach investments with discipline and be prepared for market fluctuations.

Conclusion

Understanding the volatility factor can help gauge riskier stocks and make informed investment decisions. Always analyse the risk factors and your risk tolerance before investing. Consulting a financial advisor can provide additional guidance. Stay informed about financial terminologies, stocks based on various themes, and effective financial tools by reading the Blog by Tickertape.

FAQs