Best High Volatility Stocks of Nifty 500 (2024)

Last Updated on Jun 5, 2024 by Anjali Chourasiya

The volatility of a stock represents the degree of risk associated with it. Understanding the most volatile stocks can help manage risk and balance your portfolio effectively. This article explores what volatile stocks are, how to identify them on the National Stock Exchange (NSE), and highlights the best high volatility stocks of 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 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 is dated 4th June 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?

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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

• Nifty 500: The NIFTY 500 Index has the top 500 companies based on the full market capitalisation of the NSE. It represents about 96.1% of the free float market capitalisation of the stocks listed on the NSE.  
• 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 widely used by investors and traders to assess price changes and forecast future moves.
• Beta: When it comes to finding the most volatile stocks, 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.

Details of the Top High Volatile Stocks

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 June 2024, ITI Ltd has a market capitalization of Rs. 29,547.27 cr. and a stock price of Rs. 274.70. The company has a negative PE ratio of -51.94, reflecting its recent financial challenges. The stock exhibits high volatility at 68.01% and a beta of 1.14, 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.

MMTC Ltd

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

As of June 2024, MMTC Ltd has a market capitalization of Rs. 11,085.00 cr. and a stock price of Rs. 68.00. The company has a PE ratio of 57.68, reflecting high valuation, and exhibits a high volatility of 64.81% with a beta of 1.56. Learn more about the stock’s performance here.

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 4th June 2024, HUDCO has a market capitalization of Rs. 51,789.15 cr. and a stock price of Rs. 229.70. The company boasts a PE ratio of 24.47. The stock exhibits a high volatility of 64.78% and a beta of 1.76, 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% year-on-year. 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.

Gujarat Mineral Development Corporation Ltd (GMDC)

Founded in 1963, Gujarat Mineral Development Corporation Ltd (GMDC) is a leading mining company in India, specialising in the extraction of minerals like lignite, bauxite, and fluorspar. The company is headquartered in Ahmedabad, Gujarat, and also engages in power generation.

As of June 2024, GMDC has a market capitalization of Rs. 13,022.10 cr. and a stock price of Rs. 348.15. The company has a PE ratio of 21.10, indicating a solid valuation. The stock exhibits high volatility at 62.70% and a beta of 1.40, reflecting its sensitivity to market movements. The stock has seen a notable increase in retail investor holdings, which have risen from 23.34% to 23.44% in the March 2024 quarter. This reflects growing investor confidence in the company’s future. Learn more about its financial performance here.

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 June 2024, Vodafone Idea Ltd has a market capitalization of Rs. 102,497.11 cr. and a stock price of Rs. 13.20. The company has a negative PE ratio of -3.28, reflecting its ongoing financial struggles. The stock exhibits high volatility at 61.68% and a beta of 1.25, indicating a significant degree of market risk.

Vodafone Idea has been actively raising funds to manage its substantial debt and finance its 5G rollout plans. In April 2024, the company secured shareholder approval to raise Rs. 20,000 cr. through a follow-on public offer (FPO). This is part of a larger Rs. 45,000 cr. fundraising initiative announced earlier in the year. The company has already raised Rs. 2,075 cr. from the Aditya Birla Group by allotting shares at Rs. 14.87 apiece, higher than its recent trading prices.

Despite these fundraising efforts, Vodafone Idea continues to face challenges, including a significant debt burden of approximately Rs. 2.1 trillion and a declining subscriber base. As of January 2024, the company lost 1.5 million subscribers, bringing its total to 221.5 million. Additionally, Vodafone Idea’s average revenue per user (ARPU) remains the lowest among the top three telecom operators in India, at Rs. 145 per user per month. Learn more about the performance of the stock in comparison to its peers 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. Insolvency Proceedings: The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against Zee Entertainment, providing the company temporary relief amidst ongoing financial difficulties. The proceedings were initiated due to a loan default by Zee’s multisystem operator arm, Siti Networks, claimed by IndusInd Bank.
2. 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 million in termination fees from Sony.
3. 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.
4. Financial Performance: Zee Entertainment reported a consolidated net profit of Rs. 13.35 cr. for Q4 of the fiscal year 2023-24, reflecting its efforts to stabilise financial performance. The company’s stock price saw a 5% increase following the announcement of these results. Further, as of June 2024, Zee Entertainment Enterprises Ltd has a market capitalization of Rs. 14,566.28 cr. and a stock price of Rs. 156.30. The company has a high PE ratio of 102.99, indicating strong investor expectations. The stock has high volatility at 59.74% and a beta of 1.26, reflecting significant market sensitivity.

Learn more about the stock here.

Mangalore Refinery and Petrochemicals Ltd (MRPL)

Founded on March 7, 1988, Mangalore Refinery and Petrochemicals Ltd (MRPL) is a prominent oil refinery in India. It operates under the ownership of Oil and Natural Gas Corporation (ONGC) and specialises in refining crude oil to produce various petroleum products.

MRPL has recently reported strong financial performance for the fiscal year 2023-24. The company achieved a net income of Rs. 36.0 billion, a 36% increase from the previous year. This was driven by effective cost management, which improved the profit margin to 3.4% from 2.4%. However, the company’s revenue for the year saw a slight decline, standing at Rs. 1.05 trillion, down 3.2% from FY 2023.

The company’s stock has been one of the top gainers in the BSE ‘A’ group, surging by over 17% in recent trading sessions. This rise can be attributed to the positive earnings report and investor confidence in the company’s growth prospects.

As of June 2024, MRPL has a market capitalization of Rs. 38,320.57 cr. and a stock price of Rs. 198.95. The company maintains a PE ratio of 10.65, highlighting its profitability relative to its share price. The stock has a volatility of 58.76% and a beta of 1.18, indicating moderate market risk. Learn more about the performance of the stock in comparison to its peers here.

Indian Overseas Bank (IOB)

Founded in 1937, Indian Overseas Bank (IOB) is a major public sector bank in India providing a wide range of banking services, including retail and corporate banking, agricultural loans, and international banking services. IOB has reported a significant improvement in its financial performance. The bank achieved a record net income of Rs. 808 cr. for the March quarter, up from Rs. 650 cr. in the previous year. This increase was driven by a massive reduction in non-performing assets (NPAs) and strong recoveries from written-off accounts.

Additionally, IOB’s total income for the quarter increased to Rs. 9,112.67 cr. from Rs. 6,630.57 cr. a year earlier. In a strategic move, IOB also acquired Bharat Overseas Bank, consolidating its market position and expanding its customer base.

As of June 2024, Indian Overseas Bank has a market capitalization of Rs. 127,024.21 cr. and a stock price of Rs. 62.10. The bank has a PE ratio of 47.65, reflecting strong earnings relative to its share price. The stock exhibits a volatility of 58.71% and a beta of 1.09, indicating moderate market risk. Check out the stock’s performance in comparison to its peers here.

Jupiter Wagons Ltd

Jupiter Wagons Ltd is a key player in the rail industry, specialising in the manufacturing of freight wagons, passenger coaches, and other railway equipment. The company is recognized for its advanced manufacturing capabilities and strong focus on innovation. Recently, Jupiter Wagons secured a significant order from Indian Railways for the supply of new freight wagons, which will enhance its order book and future revenue prospects. This contract underscores the company’s strong market position and capability to meet large-scale demands efficiently.

As of June 2024, Jupiter Wagons Ltd has a market capitalization of Rs. 21,653.66 cr. and a stock price of Rs. 524.90. The company has a PE ratio of 65.31, reflecting high investor expectations relative to its earnings. The stock shows a volatility of 58.09% and a beta of 1.06, indicating relatively stable performance compared to the broader market. Explore more about the stock 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 June 2024, Rail Vikas Nigam Ltd has a market capitalization of Rs. 77,249.99 cr. and a stock price of Rs. 351.50. The company has a PE ratio of 49.06, reflecting positive earnings expectations. The stock’s volatility is 57.89%, with a beta of 1.51, indicating higher market risk. Learn more about the performance of the stock in comparison to its peers here.

Features of the Most Volatile Stocks to Invest in India

Here are some basic features of the most volatile stocks:

• Frequent and Substantial Price Swings: These stocks often exhibit large price movements within short periods. For instance, Adani Enterprises and Tata Motors 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. Bajaj Finance, with a beta of 1.69, and Adani Power, with a beta of 2.83, are prime examples of high beta stocks.
• Smaller Market Capitalization: Smaller companies tend to be more volatile due to lower trading volumes and market liquidity. Stocks like Brightcom Group and ITI Ltd are examples of smaller cap stocks with high volatility.
• Sensitivity to News and External Events: Volatile stocks are highly responsive to news and external factors, causing rapid price changes. For instance, the recent regulatory scrutiny on Adani Group stocks led to significant price fluctuations.
• Increased Trading Volume: High trading volumes indicate active buying and selling, leading to price volatility. Adani Total Gas and Olectra Greentech have seen increased trading volumes, contributing to their volatility.
• Irregular or Unpredictable Earnings: Companies with erratic earnings reports often see volatile stock prices. Adani Transmission and ITI 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 technology and renewable energy sectors, such as Adani Green Energy and Tata Motors, are prime examples.
• Historical Volatility: Stocks with a history of large price swings are likely to continue being volatile. 

How to Identify Highly Volatile Stocks?

Apart from filtering the highly volatile stocks using the features mentioned above, you can track the Nifty High Beta 50 index, which includes the most volatile stocks in the NSE. When assessing high-volatility 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: Means 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.

1. 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.
2. 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.
3. 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.
4. 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.
5. Diversification: Diversification means spreading your money across different types of investments. When dealing with highly volatile 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.
6. 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.
7. 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!
8. 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 6 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!
9. 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 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. Volatile stocks can experience rapid declines, sometimes more severe than market downturns. 
• Unpredictability: Volatile 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. Volatile stocks 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 High 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.

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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