High beta stocks in BSE 500

The Nifty recorded a fresh 52-week high of 4842.2 on Tuesday, 8th September, 2009. Following that, today, the Nifty hit 4800 for the first time since May 30, 2008. In today’s Datawatch we look at the BSE 500 stocks with beta greater than 1.

What is Beta?
Simply put, 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. Here we will compare each stock in BSE 500 to the BSE Benchmark index Sensex.

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.

No	Company	Beta	Market Price	P/E
			Sep 3, 2009 (Rs)	Sep 3, 2009
1	IVRCL Infra.	1.7235	343.1	20.95
2	JP Associates	1.706	215.2	30.06
3	Indbull.RealEst.	1.6859	246.6	-
4	H D I L	1.6207	292.8	16.33
5	Unitech	1.5856	103.25	42.49
6	Reliance Infra.	1.5781	1118.55	21.05
7	India Infoline	1.5709	134.2	34.86
8	Suzlon Energy	1.5513	100.05	-
9	ICICI Bank	1.5432	736	20.97
10	Lanco Infratech	1.4926	401.4	27.88
11	Reliance Capital	1.4888	889.25	29.30
12	DLF	1.4756	412.85	73.99
13	Rel. Comm.	1.4564	290.7	34.28
14	IFCI	1.4371	52.65	6.41
15	Orbit Corpn.	1.4327	178.3	37.86
16	Tata Steel	1.4313	420.6	6.94
17	Sterlite Inds.	1.4269	645.55	48.65
18	Nag. Constructn.	1.3699	137.6	20.33
19	Welsp.Guj.Stahl	1.3616	230.3	14.30
20	I D F C	1.3523	131.7	22.02
21	Punj Lloyd	1.3208	255.25	27.21
22	JSW Steel	1.31	671.25	13.57
23	Adlabs Films	1.3082	339.35	-
24	Aban Offshore	1.3018	1570.4	22.52
25	Century Textiles	1.2954	440.6	11.91
26	Hind.Construct.	1.2931	105.2	28.28
27	Mercator Lines	1.2827	55.1	6.01
28	Essar Oil	1.2771	152.65	23.31
29	S Kumars Nation	1.277	48	22.43
30	Ansal Properties	1.2765	73.8	13.49
31	Aptech	1.2748	264.6	48.46
32	Bombay Dyeing	1.2693	361	-
33	Praj Inds.	1.2687	96.05	13.53
34	Kotak Mah. Bank	1.2446	700.25	77.81
35	Sterlite Tech.	1.243	266.2	12.15
36	Rel. Indl. Infra	1.2427	1063.3	71.17
37	Rel.Nat.Resour.	1.2409	85.2	198.14
38	Axis Bank	1.237	889.65	15.64
39	KF Airlines	1.2255	45.8	-
40	GVK Power Infra.	1.2245	45.4	-
41	S A I L	1.2233	159.95	11.68
42	NIIT	1.2043	67.7	30.50
43	Educomp Sol.	1.2036	4214.1001	54.03
44	Yes Bank	1.2025	165.05	14.02
45	Reliance Inds.	1.1994	1932.1	20.00
46	Hindalco Inds.	1.1837	102.85	8.69
47	Parsvnath Devl.	1.1808	120.3	39.97
48	Triven.Engg.Ind.	1.173	112.65	21.66
49	Dev.Credit Bank	1.172	38	-
50	Larsen & Toubro	1.168	1516	30.98
51	Tata Motors	1.1661	509.8	26.16
52	TV 18 India	1.1599	108.9	-
53	H D F C	1.1582	2383.3501	28.52
54	Puravankar.Proj.	1.1496	115.55	28.89
55	Nag. Fert & Chem	1.1461	33.95	30.04
56	Hind.Oil Explor.	1.1437	354.25	88.12
57	Everonn Systems	1.1407	379.65	22.91
58	Firstsour.Solu.	1.1257	33.95	14.76
59	Bajaj Hindusthan	1.1256	183.75	-
60	IVR-Prime Urban	1.1232	82.2	205.50
61	Ispat Inds.	1.1219	22.3	-
62	Voltas	1.1203	146.05	20.37
63	Moser Baer (I)	1.119	90.65	-
64	JSW Holdings	1.1111	1025.2	104.40
65	Idea Cellular	1.1085	79.7	23.58
66	SREI Infra. Fin.	1.0993	69.75	15.53
67	Arvind Ltd	1.0965	34.25	-
68	Polaris Soft.	1.0916	141.1	10.87
69	Kolte Patil Dev.	1.0905	48.6	5.45
70	3i Infotech	1.0882	85.6	6.68
71	Cairn India	1.0843	255.65	375.96
72	Mahindra Holiday	1.083	332.4	82.89
73	Rolta India	1.0829	177.9	7.69
74	Jet Airways	1.0827	251.2	-
75	JP Hydro Power	1.0788	82.2	26.69
76	Chambal Fert	1.0777	53.7	11.03
77	Genus Power	1.0776	180.6	5.26
78	Jindal Steel	1.0763	3168.8999	34.32
79	Wire & Wireless	1.0751	19.45	-
80	Core Projects	1.0719	183.4	20.15
81	Hind.Copper	1.0704	226.25	-
82	Kirl. Ferrous	1.0613	23.9	103.91
83	KLG Systel	1.0598	206.95	9.94
84	Sh.Renuka Sugar	1.0594	201.95	59.57
85	Videocon Inds.	1.0564	241.75	11.08
86	REI Agro	1.0527	47.1	20.13
87	D C Holdings	1.0514	117.65	18.47
88	LIC Housing Fin	1.0514	633.7	9.78
89	GMR Infra.	1.0425	134.85	421.41
90	NESCO	1.037	845.9	20.73
91	R C F	1.0369	67.2	16.59
92	Brigade Enterpr	1.0351	119.95	62.15
93	HCL Technologies	1.035	302.2	20.31
94	Peninsula Land	1.0328	84.1	13.83
95	Golden Tobacco	1.0327	92.1	-
96	MIC Electronics	1.0324	49.85	7.69
97	IDBI Bank	1.0323	101.7	8.47
98	Dish TV	1.0309	45.3	-
99	McNally Bharat	1.0304	186.2	15.79
100	St Bk of India	1.0285	1747.15	11.31
101	Sintex Inds.	1.0282	234.45	11.80
102	Neyveli Lignite	1.0267	127.25	23.74
103	Escorts	1.0232	76	18.10
104	Alok Inds.	1.0226	22.95	7.02
105	Reliance Petro	1.018	120.05	285.83
106	Ruchi Soya Inds.	1.0178	80.45	18.00
107	Walchan. Inds.	1.0165	221.85	31.47
108	M & M	1.0161	813.4	22.75
109	S T C	1.0125	341.8	23.75
110	Patel Engg.	1.0065	429.55	15.24
111	Prime Focus	1.0028	187.6	36.36
112	ICSA (India)	1.0014	200.65	5.86

Source: Capitaline