Most Volatile Stocks in India: Risk and Reward (2024)

Even while the overall share market is defined by a constantly varying positive and negative trend, certain equities are seen to be extremely volatile. The most Volatile Stocks in India on the NSE or BSE are prone to frequent swings, but their extreme volatility allows them to make significant gains when their values rise dramatically.

Understanding Volatility 

Volatility is measured statistically using deviations, sometimes known as standard deviations. In the context of the stock market, volatility is the amount that a stock’s price deviates from its intrinsic value or its movement as compared to its index. Every minute could bring volatility, and different traders could encounter different volatile stocks. 

The difference between a day’s lowest and highest price is referred to as “high volatile stocks” for intraday trading purposes. Some traders interpret it as the highest volume ever traded, but others may interpret it as intricate mathematical models that place a strong emphasis on calculations made using previous data.

Identifying the Most Volatile Stocks in India –  Methodology

When it comes to the Most Volatile Stocks in India, there are many factors to consider. Beta is one of the most significant of these. It is used to measure the volatility of stocks, depending on the index. The most crucial feature of a high volatility share is its high risk-return ratio. Generally speaking, an undiversified stock’s systematic risk or volatility is determined by beta. However, there’s also a chance that you could make a sizable profit when you take this risk. 

The most favorable returns on the extremely volatile equities for intraday trading can be obtained due to the fast varying prices. It signifies that it performs similarly to the benchmark index when Beta equals 1. A beta of more than one indicates that a stock is likely to fluctuate more than the benchmark index. 

Similarly, if a stock’s beta value is smaller than 1, it is expected that it will move less than its benchmark index. Even a small change in the index could have a significant effect on these stocks. Higher stock volatility typically corresponds to above-average returns. This steadily increases the supply and demand for these shares, as well as the daily volume exchanged.  

The Top 10 Most Volatile Stocks in India

Following your reading of the Most Volatile Stocks in India, here is a short rundown of the top ten.

KM Sugar Mills

KM Sugar Mills is a producer of distillery goods and sugar. Moreover, it produces electricity. The business has a sizable production capacity. The stock price of KM Sugar Mills has recently fluctuated by 15% of the current market price. Furthermore, there were three daily surges in the stock, with the largest percentage shift in upside-down movement being almost 60%. 

Magma Financing Corporation, Ltd 

There are 22 Indian states where this asset finance company operates. It offers a range of financing choices for items like vehicles, household necessities, and agricultural products. Magma‘s stock has a price volatility of over 11% of the base market price. 

Sun Pharmaceutical 

This multinational pharmaceutical firm sells a range of medicine formulations and active ingredients, and it is headquartered in India. The company’s 200-day moving crossover suggests that it has recently seen significant volatility. The stock usually moves by +/- 3-4% each week. Supporters assert that Sun Pharma‘s stock has changed less than 75% of other Indian equities during the past three months. 

3i Infotech Ltd 

This international brand operates on four continents and 50 countries. The 3i Infotech Ltd provides a variety of IT services in addition to IP-based software solutions. 14% of the base market price represents the company’s price volatility. 

Suzlon Energy Limited 

Rakesh Jhunjunwala’s go-to source for wind turbines is located in Pune. He did, however, eventually sell the stock because of the company’s ongoing losses. But while Suzlon is recuperating, there have been notable fluctuations in price over this period, amounting to about 25% of the basic market price. 

Jubilant Industries Ltd 

Jubilant Industries sells agricultural supplies as well as performance polymers. The company’s price volatility during the last few months has been 13% of the base market, with gains of 37% and 50% losses. 

Take Solutions Ltd 

Take Solutions Ltd., a management consulting firm, benefits from high-volume trading in its shares due to its market acceptability. Nonetheless, the stock’s price volatility is typically 19%. It recently made a little turn in the direction of a bearish comeback. 

Punjab National Bank

This financial institution Punjab National Bank has had extraordinary highs and lows since FY2020. Investor’s reaction to the news that it was withdrawing from the Canara HSBC Bank divestment process was positive, and on March 1st, 2023, the company’s share price increased. Furthermore, since its 52-week low, the price of its shares has risen by 77.90%. 

Tata Steel

This Indian steel company has had inconsistent share activity lately. Tata Steel has shown that it has a 30% upside profit potential, depending on the share price at this time. This is corroborated by the brokerage Jefferies’ continuous “Buy” rating. Nonetheless, the company’s share price experienced significant drops in February 2023.

GVK Power and Infrastructure Ltd. 

A division of the GVK Group, GVK Power and Infrastructure Ltd. oversees a range of infrastructure and power projects in India. There is a notion that the performance of the power industry this year is the reason behind the company’s stock volatility. Due to its well-established skills, the organization can demonstrate a significant volume of completed trade. The price volatility of the stock as a percentage of the base market price is 13. 

Conclusion

investments in Most Volatile Stocks in India can yield substantial returns. The stocks that were previously examined are excellent examples of the most unpredictable stocks. Thus, they are perfect for trading intraday. Putting money into these stocks could be a smart approach to get rich quickly. You have to keep a close eye on what they do, though, to make sure you don’t lose anything. 

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