The table shows the Best High Beta Stocks based on market capitalization and 1Y return.
| Stock Name | Market Cap (₹ Cr) | Close Price (₹) | 1Y Return (%) |
| Adani Enterprises Ltd | 2,72,709.82 | 2,362.80 | -22.95 |
| Adani Ports and Special Economic Zone Ltd | 2,56,797.32 | 1,188.80 | -5.83 |
| Indian Railway Finance Corp Ltd | 1,69,446.25 | 129.66 | -4.13 |
| Power Finance Corporation Ltd | 1,34,578.15 | 407.8 | 5.44 |
| REC Limited | 1,12,952.14 | 428.95 | -4.73 |
| Steel Authority of India Ltd | 47,624.96 | 115.3 | -10.62 |
| Housing & Urban Development Corp Ltd | 40,598.53 | 202.8 | 11.34 |
| National Aluminium Co Ltd | 34,073.19 | 185.52 | 27.29 |
| Hindustan Copper Ltd | 22,232.85 | 229.91 | -15.91 |
| NCC Ltd | 12,935.52 | 206.03 | -13.2 |
Table of Contents
Introduction To High Beta Stocks
Adani Enterprises Ltd
Adani Enterprises is a diversified infrastructure company operating across multiple sectors including integrated resource management, mining services, commercial mining, new energy, airports, roads, and digital businesses. Founded by Gautam Adani, the company has extensive operations in procurement, logistics, and infrastructure development.
Market Cap: ₹326,264 Crore
Close Price: ₹2,826
Returns: 1Y (27.02%), 1M (-9.23%), 6M (-7.31%)
5Y CAGR: 69.46%
Dividend Yield: 0.05%
5Y Avg Net Profit Margin: 2.23%
Beta: 1.98
Sub-Sector: Commodities Trading
Adani Ports and Special Economic Zone Ltd
Adani Ports is an integrated ports and logistics company operating multiple ports across India’s west and east coasts. The company develops, maintains, and operates port facilities, special economic zones, and integrated logistics infrastructure, including international operations like the Haifa Port in Israel.
Market Cap: ₹2,72,709.82 Crore
Close Price: ₹2,362.80
Returns: 1Y (-22.95%), 1M (6.89%), 6M (-22.38%)
5Y CAGR: 76.56%
Dividend Yield: 0.05%
5Y Avg Net Profit Margin: 2.23%
Beta: 1.26
Sub-Sector: Ports
Indian Railway Finance Corp Ltd
Indian Railway Finance Corporation is the financing arm of Indian Railways, specializing in borrowing funds to finance railway asset acquisition and leasing. The company provides financial solutions to the Ministry of Railways, lending to rail entities and funding rolling stock and infrastructure projects.
Market Cap: ₹1,69,446.25 Crore
Close Price: ₹129.66
Returns: 1Y (-4.13%), 1M (2.98%), 6M (-18.74%)
5Y CAGR: —
Dividend Yield: 1.16%
5Y Avg Net Profit Margin: 26.36%
Beta: 1.12
Sub-Sector: Specialized Finance
Power Finance Corporation Ltd
Power Finance Corporation is a non-banking financial company focused on providing financial assistance to the power sector. The company offers diverse financial products including project loans, equipment financing, refinancing, and advisory services to power infrastructure projects.
Market Cap: ₹1,34,578.15 Crore
Close Price: ₹407.80
Returns: 1Y (5.44%), 1M (2.05%), 6M (-16.98%)
5Y CAGR: 40.91%
Dividend Yield: 3.31%
5Y Avg Net Profit Margin: 17.64%
Beta: 1.35
Sub-Sector: Specialized Finance
REC Limited
REC Limited is an infrastructure finance company specializing in power sector lending. It provides financial products to state electricity boards, power utilities, and private sector entities, acting as a nodal agency for government power infrastructure schemes.
Market Cap: ₹1,12,952.14 Crore
Close Price: ₹428.95
Returns: 1Y (-4.73%), 1M (5.26%), 6M (-20.93%)
5Y CAGR: 44.22%
Dividend Yield: 3.73%
5Y Avg Net Profit Margin: 24.72%
Beta: 1.16
Sub-Sector: Specialized Finance
Steel Authority of India Ltd
Steel Authority of India Limited is a major integrated steel manufacturing company with multiple steel plants across India. The company produces a wide range of steel products including blooms, billets, channels, sheets, and specialized steel items for various industrial applications.
Market Cap: ₹47,624.96 Crore
Close Price: ₹115.30
Returns: 1Y (-10.62%), 1M (4.26%), 6M (-11.09%)
5Y CAGR: 33.99%
Dividend Yield: 1.73%
5Y Avg Net Profit Margin: 5.17%
Beta: 2.05
Sub-Sector: Iron & Steel
Housing and Urban Development Corporation Ltd
Housing and Urban Development Corporation is a financial institution focused on urban infrastructure and housing development. Established in 1970, the company provides housing finance, urban development solutions, and financial services across India.
Market Cap: ₹40,598.53 Crore
Close Price: ₹202.80
Returns: 1Y (11.34%), 1M (5.87%), 6M (-16.70%)
5Y CAGR: 56.43%
Dividend Yield: 2.05%
5Y Avg Net Profit Margin: 23.88%
Beta: 1.82
Sub-Sector: Specialized Finance
National Aluminium Co Ltd
National Aluminium Company is a vertically integrated aluminum manufacturer operating refinery and smelter plants in Odisha. The company produces alumina, and aluminum products, and generates power through thermal and renewable energy sources.
Market Cap: ₹34,073.19 Crore
Close Price: ₹185.52
Returns: 1Y (27.29%), 1M (-1.63%), 6M (2.93%)
5Y CAGR: 41.90%
Dividend Yield: 2.70%
5Y Avg Net Profit Margin: 12.10%
Beta: 1.23
Sub-Sector: Metals – Aluminium
Hindustan Copper Ltd
Hindustan Copper is a vertically integrated copper-producing company with mines and processing facilities across multiple states. The company explores, mines, and processes copper ore, producing copper cathodes, wire rods, and related by-products.
Market Cap: ₹22,232.85 Crore
Close Price: ₹229.91
Returns: 1Y (-15.91%), 1M (3.89%), 6M (-30.48%)
5Y CAGR: 58.82%
Dividend Yield: 0.40%
5Y Avg Net Profit Margin: -0.94%
Beta: 2.41
Sub-Sector: Mining – Copper
NCC Ltd
NCC Limited is a construction and infrastructure company specializing in various project activities including industrial buildings, housing, roads, bridges, water supply, power transmission, and irrigation projects across India.
Market Cap: ₹12,935.52 Crore
Close Price: ₹206.03
Returns: 1Y (-13.20%), 1M (4.69%), 6M (-34.65%)
5Y CAGR: 56.28%
Dividend Yield: 1.07%
5Y Avg Net Profit Margin: 3.71%
Beta: 1.77
Sub-Sector: Construction & Engineering
What are High Beta Stocks?
High beta stocks are equities with a beta greater than 1, indicating higher volatility than the broader market. These stocks are more sensitive to market fluctuations, offering higher returns during bullish phases but carrying greater risk during downturns.
High beta stocks are typically associated with sectors like technology, consumer discretionary, or financials, where market sentiment plays a significant role in price movement. Their performance often reflects amplified responses to broader economic or market changes, making them attractive for risk-tolerant investors.
Investors use high-beta stocks to maximize gains in rising markets. However, their volatility requires careful monitoring and risk management, as these stocks can significantly underperform during market corrections or economic downturns. Understanding market trends is crucial when investing in high beta stocks.
Features Of High Beta Stocks India
The main features of high beta stocks in India include high market sensitivity, amplified price movements relative to the benchmark index, and significant potential for higher returns in bullish phases. These stocks are typically found in volatile sectors like technology, financials, and consumer discretionary.
- High Market Sensitivity: High beta stocks exhibit greater sensitivity to market movements, reacting strongly to positive or negative changes, making them ideal for traders seeking high returns during bullish market conditions.
- Amplified Price Movements: These stocks experience more significant price swings compared to the broader market, offering opportunities for substantial profits but also carrying higher risk during market downturns.
- Sector-Specific Volatility: High beta stocks are commonly found in dynamic sectors like technology, financial services, and consumer discretionary, where rapid growth and innovation drive higher market volatility.
- Potential for High Returns: During bullish phases, high beta stocks often outperform the market, providing investors with significant return potential if market trends are favorable.
- Increased Risk Profile: While offering high returns, these stocks carry greater risk, requiring investors to employ careful analysis, robust risk management, and market trend monitoring for successful trading.
List Of High Beta Stocks Based On 6 Month Return
The table shows the Best High Beta Stocks Based On 6 Month Return.
| Name | Close Price (rs) | 6M Return |
| National Aluminium Co Ltd | 185.52 | 2.93 |
| Steel Authority of India Ltd | 115.3 | -11.09 |
| Housing & Urban Development Corp Ltd | 202.8 | -16.7 |
| Power Finance Corporation Ltd | 407.8 | -16.98 |
| Adani Ports and Special Economic Zone Ltd | 1,188.80 | -18.36 |
| Indian Railway Finance Corp Ltd | 129.66 | -18.74 |
| REC Limited | 428.95 | -20.93 |
| Adani Enterprises Ltd | 2,362.80 | -22.38 |
| Hindustan Copper Ltd | 229.91 | -30.48 |
| NCC Ltd | 206.03 | -34.65 |
High Beta Stocks Based On 5 Year Net Profit Margin
The table shows the Best Beta Stocks Based On 5-Year Net Profit Margin.
| Name | Close Price (rs) | 5Y Avg Net Profit Margin % |
| Adani Ports and Special Economic Zone Ltd | 1,188.80 | 27.83 |
| Indian Railway Finance Corp Ltd | 129.66 | 26.36 |
| REC Limited | 428.95 | 24.72 |
| Housing & Urban Development Corp Ltd | 202.8 | 23.88 |
| Power Finance Corporation Ltd | 407.8 | 17.64 |
| National Aluminium Co Ltd | 185.52 | 12.1 |
| Steel Authority of India Ltd | 115.3 | 5.17 |
| NCC Ltd | 206.03 | 3.71 |
| Adani Enterprises Ltd | 2,362.80 | 2.23 |
| Hindustan Copper Ltd | 229.91 | -0.94 |
High Beta Stocks To Buy Based On 1M Return
The table shows the Best High Beta Stocks To Buy Based On a 1M Return.
| Name | Close Price (rs) | 1M Return (%) |
| Adani Enterprises Ltd | 2,362.80 | 6.89 |
| Housing & Urban Development Corp Ltd | 202.8 | 5.87 |
| Adani Ports and Special Economic Zone Ltd | 1,188.80 | 5.67 |
| REC Limited | 428.95 | 5.26 |
| NCC Ltd | 206.03 | 4.69 |
| Steel Authority of India Ltd | 115.3 | 4.26 |
| Hindustan Copper Ltd | 229.91 | 3.89 |
| Indian Railway Finance Corp Ltd | 129.66 | 2.98 |
| Power Finance Corporation Ltd | 407.8 | 2.05 |
| National Aluminium Co Ltd | 185.52 | -1.63 |
High Dividend Yield of High Beta Stocks In India
The table shows the Best High Beta Stocks In India based on high dividend yield.
| Name | Close Price (rs) | Dividend Yield |
| REC Limited | 428.95 | 3.73 |
| Power Finance Corporation Ltd | 407.8 | 3.31 |
| National Aluminium Co Ltd | 185.52 | 2.7 |
| Housing & Urban Development Corp Ltd | 202.8 | 2.05 |
| Steel Authority of India Ltd | 115.3 | 1.73 |
| Indian Railway Finance Corp Ltd | 129.66 | 1.16 |
| NCC Ltd | 206.03 | 1.07 |
| Adani Ports and Special Economic Zone Ltd | 1,188.80 | 0.5 |
| Hindustan Copper Ltd | 229.91 | 0.4 |
| Adani Enterprises Ltd | 2,362.80 | 0.05 |
Historical Performance Of High Beta Stocks India
The table shows the Best High Beta Stocks in India based on 5Y returns.
| Name | Close Price (rs) | 5Y CAGR % |
| Adani Enterprises Ltd | 2,362.80 | 76.56 |
| Hindustan Copper Ltd | 229.91 | 58.82 |
| Housing & Urban Development Corp Ltd | 202.8 | 56.43 |
| NCC Ltd | 206.03 | 56.28 |
| REC Limited | 428.95 | 44.22 |
| National Aluminium Co Ltd | 185.52 | 41.9 |
| Power Finance Corporation Ltd | 407.8 | 40.91 |
| Adani Ports and Special Economic Zone Ltd | 1,188.80 | 35.91 |
| Steel Authority of India Ltd | 115.3 | 33.99 |
Factors To Consider When Investing In High Beta Stocks
The main factors to consider when investing in high beta stocks include market trends, sector performance, risk tolerance, and company fundamentals. Evaluating volatility, economic conditions, and potential returns helps ensure informed decisions and better risk-adjusted investment outcomes.
- Market Trends: Analyze overall market conditions, as high beta stocks perform well in bullish markets but can amplify losses during bearish phases, requiring alignment with the broader market direction.
- Sector Performance: Focus on sectors with strong growth potential, like technology or consumer discretionary, where high beta stocks are prevalent and likely to offer significant returns during favorable market conditions.
- Risk Tolerance: High beta stocks are volatile, making them suitable for risk-tolerant investors who can manage significant price fluctuations and withstand potential short-term losses.
- Company Fundamentals: Evaluate the financial health, revenue growth, and competitive positioning of the company to ensure the stock has strong fundamentals despite its high volatility.
- Economic Conditions: Consider macroeconomic factors such as interest rates, inflation, and GDP growth, which can influence high beta stocks more significantly than lower-beta counterparts.
How To Invest In High Beta Stocks?
Open a trading account with Alice Blue and strategically approach high beta stock investments. Research volatile stocks with strong market movements, analyze their financial performance, understand risk tolerance, and develop a comprehensive trading strategy focusing on market trends and technical indicators.
Implement strict risk management techniques like setting stop-loss orders and maintaining a diversified portfolio. Monitor stock performance closely, track market sentiments, and be prepared to make quick decisions based on real-time market movements and technical analysis.
Continuously educate yourself about market dynamics, study company fundamentals, and stay updated with sector-specific news. Use technical analysis tools, evaluate stock volatility patterns, and develop a disciplined approach to minimize potential losses while maximizing investment returns.
Impact Of Government Policies On High Beta Stocks
Government policies significantly affect high beta stocks due to their sensitivity to market conditions. Expansionary policies like tax cuts or increased spending boost market sentiment, leading to higher returns for these volatile stocks during bullish phases.
Conversely, restrictive policies, such as higher interest rates or reduced spending, can amplify losses in high beta stocks. Investors must monitor policy changes closely to anticipate their impact and adjust portfolios to manage associated risks effectively.
How High Beta Stocks Perform In Economic Downturns?
In economic downturns, high beta stocks are more volatile and often underperform as declining market sentiment exacerbates price drops. Their high sensitivity to market trends makes them riskier during periods of economic instability.
However, for seasoned investors, selective investment in high beta stocks with strong fundamentals during downturns can offer significant upside potential when the economy recovers, making them opportunities for high-risk, high-reward strategies.
Advantages Of Investing In High Beta Stocks List?
The main advantages of investing in high beta stocks include the potential for higher returns during bullish markets, amplified price movements for quick gains, and opportunities to capitalize on market trends, making them suitable for risk-tolerant investors seeking significant growth.
- Higher Return Potential: High beta stocks offer substantial gains during bullish markets as their price movements exceed market averages, making them ideal for maximizing returns in favorable economic conditions.
- Amplified Price Movements: These stocks experience significant price fluctuations, providing opportunities for short-term traders to capitalize on market trends and quick gains.
- Market Trend Leverage: High beta stocks outperform during strong market uptrends, allowing investors to benefit from their increased sensitivity to positive market sentiment and momentum.
- Portfolio Growth: Including high beta stocks in a portfolio can enhance overall growth during bullish periods, contributing to higher long-term returns if managed strategically.
- Sector-Specific Gains: Found in growth-oriented sectors like technology and consumer discretionary, these stocks benefit from innovation and rapid industry expansion, offering lucrative opportunities for investors.
Risks Of Investing In High Beta Stocks?
The main risks of investing in high beta stocks include amplified losses during bearish markets, significant price volatility, and sensitivity to economic fluctuations. These stocks require careful monitoring and risk management, as their potential for higher returns comes with greater investment uncertainty.
- Amplified Losses: High beta stocks experience exaggerated price drops during bearish markets, leading to significant losses, especially for investors without a strong risk management strategy.
- High Volatility: These stocks are highly sensitive to market fluctuations, making them unpredictable and requiring active monitoring to manage sudden price swings.
- Economic Sensitivity: High beta stocks are more affected by economic downturns and adverse macroeconomic changes, making them riskier in uncertain economic conditions.
- Short-Term Risk: Short-term traders face heightened risks with high beta stocks due to rapid and unpredictable price movements, increasing the chance of unexpected losses.
- Sector Dependence: Found in volatile sectors like technology or consumer discretionary, these stocks face sector-specific risks that can amplify overall investment uncertainty.
High Beta Stocks GDP Contribution
High beta stocks contribute to GDP growth by representing high-growth sectors like technology and consumer discretionary. Their performance often reflects the broader economic environment, with these companies playing pivotal roles in innovation and market expansion.
These stocks are critical in driving employment, technological advancements, and industry output. Despite higher volatility, their economic significance underscores their importance in shaping long-term national economic trends.
Who Should Invest In High Beta Stocks?
High beta stocks are ideal for risk-tolerant investors seeking higher returns in bullish markets. They suit those with a deep understanding of market trends and the ability to manage significant volatility effectively.
Conservative or income-focused investors may avoid these stocks due to inherent risks. However, experienced traders can use them for short-term gains or portfolio diversification during favorable market conditions.
Top 10 High Beta Stocks In NSE – FAQs
High Beta stocks are equities that show higher volatility compared to the overall market. When markets move up or down by 1%, these stocks typically move more dramatically, offering the potential for higher returns but also carrying increased risk.
Top High Beta Stocks #1: Adani Enterprises Ltd
Top High Beta Stocks #2: Adani Ports and Special Economic Zone Ltd
Top High Beta Stocks #3: Indian Railway Finance Corp Ltd
Top High Beta Stocks #4: Power Finance Corporation Ltd
Top High Beta Stocks #5: REC limited
Top High Beta Stocks are based on market capitalization.
The best high beta stocks for intraday trading, based on one-year returns, include National Aluminium Co Ltd, Housing & Urban Development Corp Ltd, Power Finance Corporation Ltd, Indian Railway Finance Corp Ltd, and REC Limited, offering significant volatility and potential for quick gains.
These stocks are popular among intraday traders as their high volatility creates numerous trading opportunities. However, you need a robust trading strategy and risk management plan through a reliable broker like Alice Blue.
The main limitations of high beta stocks include extreme price swings, higher risk of capital loss, need for constant monitoring, psychological pressure on traders, and requirement for larger stop-losses. These factors make them challenging for inexperienced investors.
High Beta stocks carry significant risks due to their volatile nature. They require careful analysis, strong risk management, and usually suit experienced traders who understand market dynamics and can handle sudden price movements.
Open a trading account with Alice Blue, conduct thorough technical and fundamental analysis, maintain strict stop-loss orders, and diversify your portfolio. Monitor market conditions closely and be prepared for quick decision-making.
High Beta stocks can be profitable investments during bull markets but may suffer larger losses during downturns. They suit aggressive investors with a high-risk tolerance and the ability to actively manage their portfolios.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
