High beta stocks rise more (outperform) than the index in a rising market but fall greater (underperform) the index in a falling market. Theoretically, beta is a measure of volatility of a stock in comparison to the market as a whole
Beta is key parameter in the capital asset pricing model. The model calculates the expected return of a stock based on its beta and expected returns from the market.
A beta of 1 indicates that the stock price will move in line with the market or index. A beta of less than 1 indicates that the stock price will be less volatile than the index. A beta of greater than 1 indicates that the stock price will be more volatile than the market.
IVRCL Infra has a beta of 1.7 which means if the Sensex moved up 100%, this stock moved up 170%. Only 112 companies out of BSE 500 have beta greater than 1. The analysis further suggests there are as many as 18 real estate and infrastructure companies in the list.
Recently it is reported that stocks with high beta have given more returns comapared to others.
These are the stocks with high beta
No Company Beta
1 IVRCL Infra. 1.7235
2 JP Associates 1.706
3 Indbull.RealEst. 1.6859
4 H D I L 1.6207
5 Unitech 1.5856
6 Reliance Infra. 1.5781
7 India Infoline 1.5709
8 Suzlon Energy 1.5513
9 ICICI Bank 1.5432
10 Lanco Infratech 1.4926
11 Reliance Capital 1.4888
12 DLF 1.4756
13 Rel. Comm. 1.4564
14 IFCI 1.4371
15 Orbit Corpn. 1.4327
16 Tata Steel 1.4313
17 Sterlite Inds. 1.4269
18 Nag. Constructn. 1.3699
19 Welsp.Guj.Stahl 1.3616
20 I D F C 1.3523
21 Punj Lloyd 1.3208
22 JSW Steel 1.31
23 Adlabs Films 1.3082
24 Aban Offshore 1.3018
25 Century Textiles 1.2954
26 Hind.Construct. 1.2931
27 Mercator Lines 1.2827
28 Essar Oil 1.2771
29 S Kumars Nation 1.277
30 Ansal Properties 1.2765
31 Aptech 1.2748
32 Bombay Dyeing 1.2693
33 Praj Inds. 1.2687
34 Kotak Mah. Bank 1.2446
35 Sterlite Tech. 1.243
36 Rel. Indl. Infra 1.2427
37 Rel.Nat.Resour. 1.2409
38 Axis Bank 1.237
39 KF Airlines 1.2255
40 GVK Power Infra. 1.2245
41 S A I L 1.2233
42 NIIT 1.2043
43 Educomp Sol. 1.2036
44 Yes Bank 1.2025
45 Reliance Inds. 1.1994
46 Hindalco Inds. 1.1837
47 Parsvnath Devl. 1.1808
48 Triven.Engg.Ind. 1.173
49 Dev.Credit Bank 1.172
50 Larsen & Toubro 1.168
51 Tata Motors 1.1661
52 TV 18 India 1.1599
53 H D F C 1.1582
54 Puravankar.Proj. 1.1496
55 Nag. Fert & Chem 1.1461
56 Hind.Oil Explor. 1.1437
57 Everonn Systems 1.1407
58 Firstsour.Solu. 1.1257
59 Bajaj Hindusthan 1.1256
60 IVR-Prime Urban 1.1232
61 Ispat Inds. 1.1219
62 Voltas 1.1203
63 Moser Baer (I) 1.119
64 JSW Holdings 1.1111
65 Idea Cellular 1.1085
66 SREI Infra. Fin. 1.0993
67 Arvind Ltd 1.0965
68 Polaris Soft. 1.0916
69 Kolte Patil Dev. 1.0905
70 3i Infotech 1.0882
71 Cairn India 1.0843
72 Mahindra Holiday 1.083
73 Rolta India 1.0829
74 Jet Airways 1.0827
75 JP Hydro Power 1.0788
76 Chambal Fert 1.0777
77 Genus Power 1.0776
78 Jindal Steel 1.0763
79 Wire & Wireless 1.0751
80 Core Projects 1.0719
81 Hind.Copper 1.0704
82 Kirl. Ferrous 1.0613
83 KLG Systel 1.0598
84 Sh.Renuka Sugar 1.0594
85 Videocon Inds. 1.0564
86 REI Agro 1.0527
87 D C Holdings 1.0514
88 LIC Housing Fin 1.0514
89 GMR Infra. 1.0425
90 NESCO 1.037
91 R C F 1.0369
92 Brigade Enterpr 1.0351
93 HCL Technologies 1.035
94 Peninsula Land 1.0328
95 Golden Tobacco 1.0327
96 MIC Electronics 1.0324
97 IDBI Bank 1.0323
98 Dish TV 1.0309
99 McNally Bharat 1.0304
100 St Bk of India 1.0285
101 Sintex Inds. 1.0282
102 Neyveli Lignite 1.0267
103 Escorts 1.0232
104 Alok Inds. 1.0226
105 Reliance Petro 1.018
106 Ruchi Soya Inds. 1.0178
107 Walchan. Inds. 1.0165
108 M & M 1.0161
109 S T C 1.0125
110 Patel Engg. 1.0065
111 Prime Focus 1.0028
112 ICSA (India) 1.0014
Beta is key parameter in the capital asset pricing model. The model calculates the expected return of a stock based on its beta and expected returns from the market.
A beta of 1 indicates that the stock price will move in line with the market or index. A beta of less than 1 indicates that the stock price will be less volatile than the index. A beta of greater than 1 indicates that the stock price will be more volatile than the market.
IVRCL Infra has a beta of 1.7 which means if the Sensex moved up 100%, this stock moved up 170%. Only 112 companies out of BSE 500 have beta greater than 1. The analysis further suggests there are as many as 18 real estate and infrastructure companies in the list.
Recently it is reported that stocks with high beta have given more returns comapared to others.
These are the stocks with high beta
No Company Beta
1 IVRCL Infra. 1.7235
2 JP Associates 1.706
3 Indbull.RealEst. 1.6859
4 H D I L 1.6207
5 Unitech 1.5856
6 Reliance Infra. 1.5781
7 India Infoline 1.5709
8 Suzlon Energy 1.5513
9 ICICI Bank 1.5432
10 Lanco Infratech 1.4926
11 Reliance Capital 1.4888
12 DLF 1.4756
13 Rel. Comm. 1.4564
14 IFCI 1.4371
15 Orbit Corpn. 1.4327
16 Tata Steel 1.4313
17 Sterlite Inds. 1.4269
18 Nag. Constructn. 1.3699
19 Welsp.Guj.Stahl 1.3616
20 I D F C 1.3523
21 Punj Lloyd 1.3208
22 JSW Steel 1.31
23 Adlabs Films 1.3082
24 Aban Offshore 1.3018
25 Century Textiles 1.2954
26 Hind.Construct. 1.2931
27 Mercator Lines 1.2827
28 Essar Oil 1.2771
29 S Kumars Nation 1.277
30 Ansal Properties 1.2765
31 Aptech 1.2748
32 Bombay Dyeing 1.2693
33 Praj Inds. 1.2687
34 Kotak Mah. Bank 1.2446
35 Sterlite Tech. 1.243
36 Rel. Indl. Infra 1.2427
37 Rel.Nat.Resour. 1.2409
38 Axis Bank 1.237
39 KF Airlines 1.2255
40 GVK Power Infra. 1.2245
41 S A I L 1.2233
42 NIIT 1.2043
43 Educomp Sol. 1.2036
44 Yes Bank 1.2025
45 Reliance Inds. 1.1994
46 Hindalco Inds. 1.1837
47 Parsvnath Devl. 1.1808
48 Triven.Engg.Ind. 1.173
49 Dev.Credit Bank 1.172
50 Larsen & Toubro 1.168
51 Tata Motors 1.1661
52 TV 18 India 1.1599
53 H D F C 1.1582
54 Puravankar.Proj. 1.1496
55 Nag. Fert & Chem 1.1461
56 Hind.Oil Explor. 1.1437
57 Everonn Systems 1.1407
58 Firstsour.Solu. 1.1257
59 Bajaj Hindusthan 1.1256
60 IVR-Prime Urban 1.1232
61 Ispat Inds. 1.1219
62 Voltas 1.1203
63 Moser Baer (I) 1.119
64 JSW Holdings 1.1111
65 Idea Cellular 1.1085
66 SREI Infra. Fin. 1.0993
67 Arvind Ltd 1.0965
68 Polaris Soft. 1.0916
69 Kolte Patil Dev. 1.0905
70 3i Infotech 1.0882
71 Cairn India 1.0843
72 Mahindra Holiday 1.083
73 Rolta India 1.0829
74 Jet Airways 1.0827
75 JP Hydro Power 1.0788
76 Chambal Fert 1.0777
77 Genus Power 1.0776
78 Jindal Steel 1.0763
79 Wire & Wireless 1.0751
80 Core Projects 1.0719
81 Hind.Copper 1.0704
82 Kirl. Ferrous 1.0613
83 KLG Systel 1.0598
84 Sh.Renuka Sugar 1.0594
85 Videocon Inds. 1.0564
86 REI Agro 1.0527
87 D C Holdings 1.0514
88 LIC Housing Fin 1.0514
89 GMR Infra. 1.0425
90 NESCO 1.037
91 R C F 1.0369
92 Brigade Enterpr 1.0351
93 HCL Technologies 1.035
94 Peninsula Land 1.0328
95 Golden Tobacco 1.0327
96 MIC Electronics 1.0324
97 IDBI Bank 1.0323
98 Dish TV 1.0309
99 McNally Bharat 1.0304
100 St Bk of India 1.0285
101 Sintex Inds. 1.0282
102 Neyveli Lignite 1.0267
103 Escorts 1.0232
104 Alok Inds. 1.0226
105 Reliance Petro 1.018
106 Ruchi Soya Inds. 1.0178
107 Walchan. Inds. 1.0165
108 M & M 1.0161
109 S T C 1.0125
110 Patel Engg. 1.0065
111 Prime Focus 1.0028
112 ICSA (India) 1.0014
