Volatility is one of the major factors to consider while investing in equities. High-volatility stocks can fluctuate positively or negatively during short-term intervals. Investors see volatile stocks with a higher risk due to a large room for potential losses or gains. However, for the benefits of diversification and decent returns, these stocks are accumulated by investors in order to have a well-balanced portfolio. In this article, we’ll delve into the most volatile stocks on NSE and other important aspects.
In the stock market, volatility is understood as the movement in the prices of securities against their original value or against the overall market. In case of higher volatility, the prices of security can quickly and significantly shift in either direction over a short period. The prices of security are primarily impacted by numerous factors, such as interest rate change, uncertainty in geopolitics, and differences in supply and demand. On the other hand, low volatility indicates the stable price of a security with little fluctuation over time against the overall market.
You can check volatility with the help of beta, which is a numeric value measuring the fluctuations of a share price against the overall market. The stock is more volatile when the beta is more than 1. A beta of less than 1 indicates that the stock is less volatile as compared to the overall market, and a beta equal to 1 showcases that the stock offers the same volatility as the market. Investors usually consider high-beta stocks riskier. Thus, beta is considered the most important tool when it comes to checking the volatility of the stock.
| Stock Name | P/E (x) | Beta | Volatility (%) | 1 Yr Return Vs Nifty (%) |
| IndusInd Bank Ltd | 15.28 | 2.42 | 25.65 | 7.51 |
| Adani Total Gas Ltd | 121.08 | 2.25 | 55.46 | -97.15 |
| Adani Transmission Ltd | 69.72 | 2.11 | 58.38 | -90.93 |
| Bajaj Finserv Ltd | 40.82 | 2.02 | 23.40 | -18.18 |
| Bajaj Finance Ltd | 42.34 | 1.97 | 23.58 | -3.50 |
Note: The stocks have been filtered from the Nifty 500 universe and on the basis of beta and volatility %.
IndusInd Bank is involved in banking and para-banking services. It provides various services such as accepting deposits, savings accounts, current accounts and fixed deposits, and other banking solutions. During Q1 FY 2024, the bank recorded ₹3,01,317 crore of loans, reflecting a YoY rise of 22%. In addition, the bank witnessed an improvement of 8 bps YoY in net interest margin (NIM) to 4.29% in Q1 FY 2024. The bank has strengthened its recovery profile and posted an improvement of 9 bps YoY in net NPA to 0.58% in Q1.
Adani Gas is engaged in the business of developing city gas distribution networks to supply piped natural gas to the industrial, commercial, domestic and compressed natural gas to the transportation sector. During Q1 FY 2024, the company increased CNG Stations to 467 by adding seven new CNG Stations. Total PNG homes reached 7.28 lakh, with the addition of 23,928 new homes in PNG during the quarter. The company’s standalone numbers reflected strength, whereby revenue from operations amounted to ₹1,135 crore, and EBITDA rose by 12% to ₹255 crore.
Adani Transmission Ltd is engaged in engineering, construction management/operation and maintenance business. The company’s businesses include engineering, procurement and construction (EPC) and Utilities. During Q1 FY 2024, the consolidated revenue increased by 19% to ₹3,622 crore, and consolidated operational EBITDA was up by 3% to ₹1,254 crore. The company added 550 ckms to the operational network, and the total network now stands at 19,778 ckms. With a beta of 2.11, Adani Transmission is highly volatile.
Bajaj Finserv Ltd is a holding company whose subsidiaries are involved in the business of financial services, insurance and wealth management. The company recorded a growth of ~47% in consolidated revenue to ₹23,280 crore and profit after tax of ₹1,943, indicating a growth of 48% in Q1 FY 2024. Bajaj Finserv remains a debt-free company. Bajaj Finserv’s surplus funds (Excluding Group Investments) stood at ₹ 2,094 crore as of June 30, 2023, vs ₹ 1,432 crore as of June 30, 2022 and ₹ 1,709 crore as of March 31, 2023. The stock has a volatility of 23.40%.
Bajaj Finance Ltd is a registered non-banking finance company (NBFC). It is engaged in lending and allied activities. During Q1 FY 2023, the company delivered the highest-ever AUM growth of ₹22,718 crore, booked 9.94 MM new loans and added 3.84 MM new customers. As of June 30, 2023, the Bajaj Finserv App has 40.2 MM net users. It has a beta of 1.97, making it a volatile stock.
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High-volatile stocks possess the potential to create substantial returns for investors, but they also entail substantial dangers. Investors should conduct thorough research and analysis, adhere to a disciplined risk management plan, and acquire volatile stocks only after doing so. Although purchasing these high-volatility stocks can be challenging, there are opportunities to locate affordable companies in quickly expanding industries.
If these above stocks interest you, check them out on the Angel One App. If you are new to the stock market, open a demat account with Angel One today.
Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
Published on: Oct 30, 2023, 8:05 AM IST
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