High Volatile Stocks In India 2024

  • 10 May 2024
  • Read 19 mins read

High-volatile stocks are stocks that exhibit significant fluctuations in their price over a short period of time. High volatile stocks continue to be in demand among investors willing to take high risks in the hope of fast growth. In the stock market, some stocks show more fluctuations than the overall market. In India stockbrokers and investors keep an eye out for these highly volatile stocks as they can lead to significant returns, with their notable price changes. Let's read further about the best high volatile stocks in India.

What is the Meaning of Volatility in the Stock Market?

Volatility is the rate at which a security's price increases or decreases for a set of returns, indicating the risk associated with the price change. It is measured by calculating the standard deviation of annualised returns over a given period. It gauges the speed of securities or market indexes' value. High standard deviation values indicate a wide spectrum of prices, while low values indicate a narrow range. In the stock market, rapid price fluctuation is considered volatility, with a high standard deviation value indicating a dynamic price rise or fall. A surge or dive of 1% in market indexes typically classifies it as a "volatile" market.

 

List of Most Volatile Stocks on NSE in 2024

Below is the list of most volatile stocks on NSE in 2024.

Company NameSector      Market Cap       Share Price
Adani EnterprisesTrading Companies and Distributors      3.48 trillion 3,049
Adani Green Energy LtdIndependent Power and Renewable Electricity Producers2.84 trillion1,794
Adani Transmission LtdElectric Utilities1.17 trillion1045
Adani Total Gas LtdGas Utilities1.01 trillion 915
ITI LtdDiversified Telecommunication Services281.83 billion 
Olectra Greentech LtdElectrical Equipment147.34 billion1,796
MMTC LtdTrading Companies & Distributors112.72 billion75
Brightcom Group Ltd          Media      30.18 billion14

Disclaimer: This list of volatile stocks contains data updated as of April 26th, 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Overview of the Most Volatile Stocks in India for 2024

An overview of the most volatile stocks mentioned in the list is as follows:

  • Adani Enterprises Limited

    With an incredible 96% annual growth, Adani Enterprises (NSE) produced an incredible ₹ 105,914.06 Cr. in operating revenue during the last 12 months. But the pre-tax margin, currently at 2%, and the ROE, which is reasonable but could be raised to 7%, both have scope for improvement. Among the Indian stocks on our list of highly volatile stocks, it is one of the most volatile.
  • Adani Green Energy Limited

    Owned by the Adani Group and having its headquarters in Ahmedabad, Adani Green Energy Limited (AGEL) is a major player in the renewable energy industry. One of the biggest solar photovoltaic facilities in the world, the Kamuthi Solar Power Project, is run by AGEL. Originally collaborating with Inox Wind on a 20 MW wind power project in Lahori, Madhya Pradesh, AGEL was incorporated on January 23, 2016. Subsequently, AGEL bought Inox Wind's 50 MW wind power project in Kutch. On our list, it is also among the most volatile stocks in nifty 50
  • Adani Transmission Ltd

    The business activities of Adani Transmission Limited include engineering, construction management/operation, and maintenance. The company operates in two business segments: utilities and engineering, procurement, and construction (EPC). On our list, it is also among the most volatile Indian stocks on the NSE for intraday trading.
  • Adani Total Gas Ltd

    Adani Total Gas Limited (ATGL) is a city gas distribution company that specialises in building gas networks to distribute compressed natural gas for transportation as well as piped natural gas to a range of customers, including commercial, industrial and residential ones. Distribution networks have been set up in Ahmedabad, Vadodara, Faridabad, and Khurja. It is also among our list of stocks with the highest intraday volatility.
  • ITI Ltd

    One of the major companies in the telecom industry, ITI Limited, is a public sector enterprise. It is notable for being one of the nation's leading suppliers of defence electronics systems. ITI Limited was founded in 1948 and opened its first departmental factory. Its production facilities are located in Kerala (Palakkad), Karnataka (Bengaluru), and Uttar Pradesh (Naini, Mankapur, Rae Bareli). On our list, it is also among the most volatile stocks on NSE right now.
  • Olectra Greentech Ltd

    Based in Hyderabad, Olectra Greentech Limited (OGL), a MEIL Group company, is the leading producer of pure electric buses in India. Olectra, which was founded in 1992, has led the way in the development and implementation of numerous electric bus models across the country. Olectra Greentech Limited has a market valuation of more than ₹13,700 crores as of January 16, 2024. Its share price has astonishingly increased during the last three years by more than 1,120%. On our list, it is also among the stocks with the highest volatility.
  • MMTC Ltd

    The leading public sector international trading corporation in India is MMTC Limited, which was established in 1963 and has its headquarters in Delhi. It is run by the Indian government's Ministry of Commerce and Industry. MMTC, widely recognised as the biggest non-oil importer in the country, engages in a range of commercial endeavours, utilising modern tools such as link deals in international commerce, third country trade, and joint ventures. On our list, it is also among the stocks with the most volatility currently.
  • Brightcom Group Ltd

    With a remarkable 47% annual growth, Brightcom Group's trailing 12-month operating revenue is ₹7,606.48 Cr. The return on equity (ROE) is remarkable at 19%, and the pre-tax margin reaches an outstanding 26%. On our list of highly volatile stocks, it is also among the Nifty 50's most volatile stocks right now.

How to Identify Best Volatile Stocks?

Identifying highly volatile stocks on the NSE requires a systematic approach incorporating measures like Beta to gauge volatility. The Nifty High Beta 50 index tracks the most volatile Indian stocks and compares them with the benchmark index. High-volatility stocks have higher chances of intraday returns due to fast price fluctuations. Beta can be measured by comparing it to the benchmark index. A Beta greater than 1 indicates high volatility, while a Beta equal to 1 indicates equal performance. A beta of less than 1 indicates less fluctuation than the benchmark index.

Why do People Invest in High Volatile Stocks? 

There are several main reasons why investors become attracted to volatile stocks. The potential returns on these stocks are far higher than those of steady, blue-chip companies. Investors can try to "buy low and sell high" during market fluctuations if they are creative with their timing and have an in-depth understanding of the company's prospects.

Some investors view highly volatile stocks as a way to add diversity to their portfolios by adding a level of risk that could eventually lead to higher returns.. 

How to Invest in Most Volatile Stocks in India? 

Analysing India's most volatile stocks today requires a calculated approach to balance possible rewards and risks properly. Consider these important steps:

  • Do Extensive Research

    Before making any decisions, do an in-depth analysis of the particular stocks. Analyse past market trends, financial statements, and the factors affecting volatility.
  • Track the Market

    You should stay updated on the latest stock market and economic developments. These developments have a significant impact on volatile stocks, and understanding the overall market conditions will help you make appropriate decisions.
  • Diversify Your Holdings

    To reduce the influence of a single stock's performance on your portfolio, spread your investments among many high-volatility stocks for intraday. Diversification can be used as a risk management strategy.
  • Make Use of Stop Loss Orders

    Stop-loss orders are a useful tool for reducing possible losses. If a stock has a substantial decline, you can use a stop-loss order to sell at certain exit points automatically.

Who Should Invest in High Volatile Stocks?

High volatile penny stocks can offer substantial gains, but they also come with significant risks that require careful research and risk management strategies. Investing for the long term reduces the effect of volatility on portfolio performance. Risk-averse investors may be unsettled by volatile markets, but such swings have less impact on long-term investments. So, Long-Term investors can consider investing in high-volatility stocks. 

Factors to Consider Before Investing in High Volatile Stocks in India?

High profits may be possible from investing in extremely volatile stocks, but there is a higher risk involved. It is, therefore, important to carefully evaluate a few criteria before investing in 

highly volatile stocks. Factors to consider before investing in highly volatile stocks are given as follows:

  • Risk Tolerance

    Many investors are uncomfortable with the highly volatile stocks in the Nifty 50 due to their volatility. However, these stocks are suitable for intraday traders who are willing to take high risks.
  • Investment Timeframe

    Nifty 50 high volatile stocks are also well-suited for short-term traders who seek to profit from short-term price fluctuations.
  • Fundamental Analysis

    Analyse the company’s financials, earnings and balance sheet, cash flow and debt. High volatile stock may imply even greater uncertainty, but it is even more critical to determine where it comes from.
  • Market Conditions

    Additionally, assess the overall market’s volatility and any other unusual factors that might influence a stock’s outlook.

Features of the Most Volatile Stocks to Invest in India 

Before investing in highly volatile stocks in India in 2024, investors should understand the following distinctive features.

  • Market Sensitivity

    Firstly, market sensitivity stands for high sensitivity of the most volatile stocks. Market trends respond quickly and actively to any economic changes, geopolitical events, and industry indicators.
  • Beta Values

    Beta values reveal how the value of high beta stocks is more uncertain, and a high volatile share has a greater chance of increasing or decreasing the effect of general market movements. Investors may explore the metric to determine the magnitude of price movements.
  • Earning Volatility

    Earnings volatility occurs when a stock’s earnings pattern is difficult to predict. A more unpredictable stock is a more volatile one. An insight into the risk and stability of a given stock can be obtained by analysing past revenue data.
  • Industry Dynamics

    Factors related to a particular industry may have an impact on volatility. Industries vulnerable to sudden regulation changes, technical breakthroughs, or market conditions could have highly volatile equities for the NSE's intraday trading.
  • Liquidity Levels

    Price fluctuations may be amplified by low liquidity. Stocks with lower trading volumes can see more abrupt and volatile price changes.

What are the Advantages & Disadvantages of Volatile Stocks?

Here are the advantages and disadvantages of fluctuating stocks:

Advantages of Volatile Stocks

Disadvantages of Volatile Stocks

In the long run, highly volatile stocks can have a large profit potential. This can be attributed to their frequently lower prices than stocks with lower volatility.Furthermore, riskier than less volatile stocks are high volatility stocks. This is because there is a greater potential for significant losses due to their pricing' erratic fluctuations.
Traders can profit from small price fluctuations by quickly buying and selling highly volatile stocks.It might be challenging to predict the short-term performance of volatile stocks. Making profits and managing your trades can be challenging as a result.
High volatility stocks can provide investors with entry into unestablished new industries.Stocks with high volatility may not be as liquid as stocks with lower volatility. As a result, it could be challenging to acquire and sell them rapidly, which could make it difficult to sell a position if the stock price drops.

Tips For Investors While Investing in High Volatile Stocks

Various tips for investors while investing in high volatile stocks are explained as follows.

  • Being invested and tolerating short-term fluctuations is one tactic used by investors when dealing with highly volatile stocks. Implementing this into practice can be more difficult than it seems because, in a bear market, a person's portfolio could decline 50% or more. 
  • Additionally, traders have to eliminate the rumours around the buy-and-hold approach. A long-term investor must understand how corporate fundamentals drive the markets to make profitable investments. 
  • While trading online, it is possible to experience problems accessing your account; therefore, you should consider using other methods, including faxing or calling your broker. 
  • When markets aren't moving as expected or in the way that they usually do, investors should exercise caution when placing their orders. This can minimise losses from inaccurate quotes. 

Things to Consider Before Investing in High Volatile Stocks

Here are the main things to consider before investing in high volatile stocks. 

  1. Before investing in high-volatility companies, investors must know how to take advantage of volatility. Losses result from impulsive reactions to market downturns. 
  2. Avoiding losses usually takes preference over creating profits for investors. Over time, embracing volatility can result in significant gains, necessitating adhering to investing plans during bear markets. 
  3. Volatility can result in large losses for traders just interested in capital gains. Profiting from volatility requires efficient trade execution because abrupt changes in the market can swiftly drain investment funds for inexperienced and seasoned traders.

Conclusion
Before investing in highly volatile stocks, thorough due diligence and technical analysis are essential. Short-term investments in these stocks are often susceptible to market shocks and unexpected developments. Those with a high-risk tolerance may find opportunities to profit quickly. 

However, individuals concerned by sudden decreases in their investment value should avoid these stocks. Alternatively, if the fundamentals are good, one might consider maintaining a long-term investment in volatile stocks. Lastly, use a reliable stock market app to ease out your investment.

FAQs on High Volatile Stocks

The stock's price might be temporarily frozen if it reaches a certain limit to prevent excessively high prices.

Yes, but there might be limitations. When a stock's price jumps significantly, it often means there are more buyers than sellers.

Brokerage platforms, and real-time market trackers can show you stocks with significant price increases.

These stocks are suited for shorter-term investment strategies. Define your exit plan beforehand, based on a specific price target or timeframe.

Short-term capital gains taxes apply if you sell the stock within a year of purchase. Long-term capital gains tax rates are typically lower if you hold for over a year. Consult a tax advisor for specific tax advice.