A Look At 20 High Beta Stocks in India; Should You Buy them?

Updated: Friday, April 17, 2015, 12:09 [IST]

If you have an appetite for risk, the one best place to be is high beta stocks. High beta stocks are nothing but stocks that move faster when the market go up and fall faster, when the markets fall. What this means is that if the markets fall one per cent high beta stocks could fall more then one per cent, leaving you with higher losses.

A Look At 20 High Beta Stocks in India; Should You Buy them?

On the other hand when markets climb, say for example 1 per cent, these stocks would climb more then that often leaving you with more money.

Explaining Beta with 1

Generally the number one is taken into consideration when we talk of beta. So, a beta of one will indicate that the share price would move with the market. A beta of more than one will indicate that the share would be more volatile then the market and would move higher or lower then the market.

A beta of less then one would mean the share is not volatile and you would make less money when the market climbs and lose less money when the market falls.

Here is a look at a list of 20 high beta stocks in India. These are not necessarily in the highest pecking
order in terms of beta value and their current market price.

Hindalco - Rs 140.85

PNB - Rs 164

IDBI - Rs 81

IFCI - Rs 35.70

Adani - Rs 645

Allahabad Bank - Rs 108

JP Associates - Rs 24.80

Jindal Saw - Rs 67

Larsen - Rs 1765

PTC - Rs 79

RCOM - Rs 72

Raymond - Rs 484

UCO Bank Rs 68.70

Voltas - Rs 297
India Cement - Rs 101.65

LIC Housing - Rs 442

Oriental Bank - Rs 230

Punjab National Bank - Rs 164

Union Bank of India - Rs 163

Should You Invest in High Beta Stocks?

High beta stocks are stocks that tend to fall and rise sharper then the markets. The risk is far higher then other stocks. Therefore, if you have a penchant for risk, you can invest in these stocks or else it is best to avoid them since they are highly risky bets.

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