Most Volatile Stocks — High-Risk, High-Reward Indian Shares to Watch

Let’s say you bought 100 shares of a company at ₹150 on Monday. On Tuesday, the price goes up to ₹180. Feels great, right? But then on Thursday, it drops all the way to ₹135. That’s a total change of ₹4,500 in just three days.

This is what we call a volatile stock. Its price keeps going up and down very quickly—like a rollercoaster ride.

Some people love this kind of movement because they believe they can make quick profits. Others find it risky and stressful. Volatile stocks don’t move slowly—they jump, fall, rise again, and sometimes surprise you when you least expect it.

These kinds of stocks are exciting but also risky. You need to be alert, do your research, and sometimes be ready to make fast decisions.

Most Volatile Stocks Introduction

Imagine you’re riding a rollercoaster. You go up, then suddenly drop, then up again. That’s how some stocks behave every day. These are called the most volatile stocks.

Volatile stocks are the ones that go up and down in price very quickly in a short time. One day they can rise like a rocket, and the next day, they can fall like a stone. These stocks are full of action. People who like fast-moving stocks often look at these to try and make money quickly.

But remember, fast moves mean fast profits or fast losses. So you need to be careful.

What Are Most Volatile Stocks & Why Invest in Them?

A volatile stock is a stock whose price changes a lot in a short time. Some stocks move slowly and steadily. But volatile stocks move very fast—either up or down.

These stocks are popular with traders who buy and sell quickly (sometimes on the same day). But they may not be the best choice for people who get worried easily or want steady returns.
 

So, while there’s money to be made, there’s also risk. It’s like riding a bike fast—fun but dangerous if you’re not careful.

Reasons to Invest in Most Volatile Stocks

Reasons why some people like to invest in the most volatile stocks:

1. Chances to Earn More in Less Time

Because these stocks move fast, you can buy low and sell high quickly. Some people earn in just a few days or even hours. This is called short-term trading.

Example: If you bought a stock at ₹100 in the morning and sold it at ₹110 in the evening, you just made ₹10 per share in one day.

2. Excitement and Fast Learning

If you enjoy action and want to learn about the stock market quickly, volatile stocks are like a classroom. You see changes every day and learn what affects prices—like news, events, or earnings.

3. Useful for Traders (Not Investors)

People called traders look for quick chances. They don’t hold stocks for years. For them, these stocks give more chances to make trades and earn faster.

4. Prices May Be Temporarily Low

Sometimes a stock becomes volatile because of temporary problems, not permanent ones. If you can find such a stock, you might buy it cheap and sell when it goes up again.

5. Volume is High

These stocks are traded a lot, which means it’s easy to buy and sell them. You don’t get stuck with a stock that no one wants.

Note: Volatile stocks are not for everyone. If you are new, it’s better to start with small amounts or do paper trading (fake money practice) first. You can also use stop-loss (an automatic sell point to limit your loss) to stay safe.

Key Factors Affecting Most Volatile Stocks

Volatile stocks jump up and down in price quickly. But why do they do that? It’s not just luck. Many things cause these fast price changes.

Let’s take a look at the main reasons why some stocks become super jumpy (or volatile). We’ll also share how much they can move, using easy numerical examples.

Best Volatile stocks 

Ravi, who is 29 years old and an intraday trader from Mumbai, began trading in November 2023 with a capital of ₹1,00,000. He began trading low-volatility blue-chip stocks and made an average return of only ₹3,000 per month. In February 2025, he understood that these stocks had limited price movement and less scope for intraday returns.

Having studied charts and price action, he moved on to more volatile stocks such as Adani Ports and BHEL, where intraday price movements used to oscillate between ₹6 to ₹12. Within a month of trading volatile stocks, Ravi earned ₹14,500, nearly 5x his previous monthly profit. 

His average trade length fell from 3 hours to barely under 45 minutes, with better entry and exit signals. In the course of the next three months, his capital increased from ₹1,00,000 to ₹1,48,000 due to well-timed trades in high-momentum, liquid stocks.

If you’re also looking to maximise your intraday returns, here’s a table of the most volatile stocks in India 2025 that show strong price momentum and sharp daily movements:
 

Disclaimer: All the information is taken from Google Finance.

Factors to Consider Before Investing in the Most Volatile Stocks in India

Volatile stocks can move up or down very quickly, which means they can give fast profits — but also fast losses. So, before investing in them, here are some important factors to look at, along with real-life-like examples using numbers to make things super clear.

1. Beta Value – How Volatile is the Stock?

Beta tells you how much a stock moves compared to the market.

• If Beta = 1:  The stock moves just like the market.
   
• If Beta > 1:  The stock is more volatile.
   
• If Beta < 1:  The stock is less volatile.

Example:

Let’s say the Nifty 50 moves up by 1% in a day.

• If Adani Ports (Beta = 2.05) moves +2.05%, it is more volatile than the market.
   
• If HUL (Beta = 0.6) moves only +0.6%, it is more stable.

So, high-beta stocks like Adani Ports or BHEL can give bigger returns, but they also carry more risk.

2. Liquidity – Can You Buy/Sell Easily?

Liquidity means how many people are buying or selling a stock. High liquidity means you can trade without delays.

Numerical Example:

• Stock A trades 50 lakh shares daily = high liquidity
   
• Stock B trades only 5,000 shares daily = low liquidity

If you want to buy 1,000 shares of Stock B, it may take time, or you may have to pay a higher price. With Stock A, the trade happens fast and clean.

Choose stocks with high trading volume like Tata Steel, PNB, or BHEL.

3. Company Fundamentals – Is It a Strong Company?

Don’t just buy a stock because it moves a lot. Make sure the company is solid.

Example:

• Stock X: Goes up 10% in 1 day but has a huge debt and no profits.
   
• Stock Y: Goes up 5% in 1 day, makes a consistent profit, and has good leadership.

It’s safer to go with Stock Y, even if it's slightly less exciting. Volatility with strong fundamentals is a smarter choice.

4. News Impact – Stocks That React to Headlines

Volatile stocks jump or fall heavily when there’s news — like budget announcements, government policies, or company results.

Numerical Example:

• On Budget Day, Rail Vikas Nigam Ltd (RVNL) went from ₹165 to ₹200 in 3 hours — a jump of over 20%.
   
• But the next day, it fell to ₹175 — a 12.5% fall.

So, keep an eye on the news if you invest in volatile stocks.

5. Use of Stop-Loss – Always Set a Safety Limit

A stop-loss is a price where you exit automatically to limit your loss.

Example:

• You buy BHEL at ₹180.
   
• You set the stop-loss at ₹170.
   
• If it falls to ₹170, your trade closes and you limit loss to ₹10 per share.

Without a stop-loss, if the price crashes to ₹150, you lose ₹30 per share — which could be 3x more than planned!

Always use stop-loss while trading volatile stocks.

6. Technical Indicators – Charts Can Help

Volatile stocks often follow patterns like breakouts, pullbacks, and momentum moves. Indicators like RSI, MACD, and Moving Averages help you decide when to buy/sell.

Numerical Example:

• RBL Bank is at ₹220.
   
• RSI shows “Overbought” at 80.
   
• The stock suddenly drops to ₹210 the next day — a loss of ₹10.

If you had used RSI, you would’ve waited for the price to settle before buying.

Use simple technical tools to stay ahead.

7. Market Sentiment – Are Traders Feeling Positive or Negative?

Volatile stocks move with the mood of the market. If the overall market is down, even good stocks can fall.

Example:

• Nifty falls 1.5% in a day.
   
• PNB (a high-beta stock) falls 3.5%, more than double.

Check the market trend before trading volatile stocks. Avoid going long when the market is weak.

8. Economic Triggers – RBI, Oil Prices, Budget, etc.

Macroeconomic events affect volatile stocks the most.

Example:

• RBI raises repo rate by 0.25%.
   
• Bank stocks like SBI and Axis Bank fall by 3–4% in 1 day.
   
• Power stocks like NTPC remain flat.

Some stocks are more rate-sensitive. Know how your stock reacts to such events.

9. Your Time & Experience – Don’t Jump in Blindly

Volatile stocks need time, attention, and practice. If you can’t track charts or watch the market during the day, these may not suit you.

Example:

Ravi trades in Adani Ports. He checks charts every 15 minutes. He exits when the target is hit.

A beginner who holds it all day without checking may miss the right exit and lose money.

If you're busy or new, start with small amounts or use less volatile stocks.

10. Capital Allocation – Don’t Put All in One Basket

Spread your money across 2–4 volatile stocks to reduce risk.

Numerical Example:

You have ₹1,00,000.

• Bad idea: Put a full ₹1,00,000 in Suzlon.
   
• Better idea: ₹25,000 in Suzlon, ₹25,000 in BHEL, ₹25,000 in PNB, and ₹25,000 in Adani Ports.

Challenges & Risks in Most Volatile Stocks
 

Future of Most Volatile Stocks in India 
 

• Rising Retail Participation
  As of March 2025, India boasts over 3.94 crore active demat accounts, indicating a surge in retail investors seeking quick returns through volatile stocks.
   
• Quick Gains in Short Timeframes
  Ramesh invested ₹20,000 in Suzlon Energy in January 2025 at ₹35 per share. Two weeks later, the share moved to ₹45, allowing him to earn a ₹5,714 profit, a 28% return within less than 15 days. ​
   
• Sectoral Growth Driving Volatility

Segments like defence and infrastructure are expanding at a very high pace. For instance, the stock price of Rail Vikas Nigam Limited (RVNL) fluctuated between ₹436.20 and ₹481.05 within a day in January 2025, exhibiting high intraday volatility.
 

• Algorithmic Trading Exacerbating Movements

The arrival of algorithmic trading has the effect of stocks reacting to news or data releases within seconds, resulting in sudden price movement and increased volatility.
 

• Opportunities for Intelligent Traders

Though risky stocks are volatile, they present great opportunities for intelligent traders who use well-disciplined strategies, including placing stop-loss orders and conducting proper research.

Who Should Invest in Most Volatile Stocks?

Volatile stocks are like double-edged swords. They can earn you handsome returns in a short span, but they can also eat into your capital if you're not cautious. So, who are they truly meant for? Let’s break it down in a simple and relatable way.

1. Intraday Traders Looking for Fast Gains
 

• If you are someone who actively monitors the market during trading hours (9:15 AM – 3:30 PM), volatile stocks can be your playground.
   
• These stocks move quickly — sometimes ₹10–₹20 up or down within hours.
   
• Numerical Example:
  Kunal, a 27-year-old trader from Pune, spotted a momentum breakout in Adani Power at ₹490 and sold the same at ₹515 the same day. That’s a ₹2,500 profit on just 100 shares — all before lunch!

2. Swing Traders Who Can Hold for a Few Days
 

• Swing traders typically hold positions for 2 to 10 days and look to ride short-term trends.
   
• Volatile stocks work great for them because of the price swings.
   
• Numerical Example:
  Neha, a marketing executive and part-time trader, bought BHEL at ₹215 after seeing positive earnings news. She sold it 5 days later at ₹238. Her profit on 200 shares? ₹4,600 — in less than a week.

3. High-Risk Investors with Market Knowledge
 

• If you understand charts, company news, earnings reports, and volume trends, you might handle volatility better than most.
   
• These investors don’t panic easily and often use volatility to time entry and exit.
   
• Example:
  Rajeev, a long-term investor, spotted a bullish breakout in RVNL (Rail Vikas Nigam Ltd) and entered at ₹160. He exited within 7 days at ₹192, making a ₹6,400 profit on 200 shares.

4. People Who Use Stop-Loss Discipline
 

• You must have discipline — volatile stocks are not for people who "hope it will bounce back."
   
• A stop-loss helps protect your money if the trade goes wrong.
   
• Example:
  Priya entered HFCL at ₹88 with a stop-loss at ₹83. The price fell, and she was out with only a ₹500 loss — much better than losing ₹2,000 had she held blindly.

5. Investors with a Separate Risk Budget
 

• Don’t use emergency funds or your life savings to invest in volatile stocks.
   
• Ideally, allocate 5–10% of your portfolio to this segment — call it your “high-risk–high-reward” bucket.
   
• If you lose, it won’t affect your main investments.

Who Should Avoid Volatile Stocks?
 

• First-time investors with no market experience
   
• People with a low-risk appetite
   
• Retirees or those needing stable income
   
• Anyone who gets emotionally affected by losses

How to Invest in Most Volatile Stocks?

Let’s meet Rohit, a 30-year-old working professional from Pune. After spending a few years in IT, he decided to try his hand at stock market investing in 2024. While reading articles and watching YouTube videos, he kept hearing terms like "high beta stocks" and "volatile momentum trades." The promise of faster profits grabbed his attention.

Soon, he found himself tracking stocks like Adani Power, RVNL, and BHEL — which often jumped or dropped ₹10 to ₹20 in a single day. His friends warned him about the risks, but Rohit was determined to learn the ropes.

He didn’t want to gamble; he wanted a structured way to invest smartly in volatile stocks. Here’s how someone like Rohit — or anyone new to the market — can go about it wisely.

Step-by-Step: How to Invest in Volatile Stocks in India

1. Open a Demat and Trading Account

Before buying any stock — volatile or not — you must have a Demat and Trading account. These accounts allow you to buy, hold, and sell shares digitally. Many brokers in India now offer zero-brokerage trading and easy account opening.

Examples of popular brokers: Zerodha, Upstox, Groww, Angel One, ICICI Direct, HDFC Securities

Rohit’s example: Rohit chose Groww because of its mobile-friendly app. He submitted his Aadhaar, PAN, and a selfie. Within 30 minutes, his Demat and trading account were active.

2. Shortlist High Beta Stocks with Liquidity

Volatile stocks usually have a high beta value, meaning their price changes more than the overall market. For instance, a beta of 2 means the stock moves twice as fast as the Nifty.

You also want to ensure liquidity — the ease of buying/selling. Look for stocks that trade at least 5 lakh shares per day.

Example: BHEL has a beta of 2.3 and trades over 1 crore shares daily. That makes it volatile and liquid — ideal for short-term movements.

3. Start Small with Your Investment

Rohit didn’t put his entire ₹50,000 savings into one stock. He started with ₹2,000–₹5,000 per trade. This helped him stay in control and avoid emotional decisions.

Tip: With volatile stocks, even ₹5,000 can result in noticeable gains or losses. Begin small to get comfortable with how the stock behaves.

4. Use a Stop-Loss Every Time

Let’s say Rohit buys Adani Power at ₹100, expecting it to rise to ₹110. But he sets a stop-loss at ₹95, meaning if the price drops to ₹95, the system will automatically sell to limit losses.

This is the most important tool in volatile stock trading. No matter how sure you are, never trade without a stop-loss.

5. Follow Market Trends Closely

Volatile stocks move fast, often due to:

• Sectoral news
• Government policy announcements
• Global events

Rohit started checking market updates every morning on Moneycontrol, TradingView, and even his broker’s app. This helped him understand why a stock was moving.

Example: One day, news broke that the government was increasing rail infra spending. Stocks like RVNL and IRFC shot up 10% on the same day.

6. Avoid Holding Overnight (for beginners)

Volatile stocks are unpredictable. A stock that ended up ₹5 today might open ₹10 down tomorrow due to overnight news.

As a beginner, Rohit made it a rule to exit his positions before 3:15 PM — unless he had strong conviction and news backing.

Final Thoughts: Should You Invest in Most Volatile Stocks?

Yes, but only if you're ready to learn, stay disciplined, and manage your risk.

Volatile stocks can help you make money faster than stable ones, but they also carry the risk of losing quickly. The key is to follow a plan, avoid emotional decisions, and keep learning.

Rohit now trades in volatile stocks two to three times a week. He doesn’t win every time, but because he sticks to small trades and uses stop-loss, his wins outweigh his losses.

If you're someone who:

• Likes to stay updated with the market
   
• Enjoys short-term trades
   
• Can manage risk emotionally and financially

Then volatile stocks might just suit your style.

But if you're looking for slow and steady returns with minimal effort, you’re better off with index funds or stable blue-chip stocks.

FAQs 
 

Q1. What is a volatile stock?
A stock whose price changes rapidly within short time periods.

Q2. Do I need a Demat account to invest in volatile stocks?
Yes, a Demat and trading account is essential.

Q3. Are volatile stocks safe for beginners?
Only if traded with caution, stop-loss, and small capital.

Q4. Can I make fast money with volatile stocks?
Yes, but the risk of fast losses is just as high.

Q5. How do I know if a stock is volatile?
Check its beta value, daily price swings, and trading volume.

Q6. Should I use technical analysis?
Yes, it helps in timing your entry and exit.

Q7. Is it better to trade or invest in such stocks?
They’re more suited for trading than long-term investing.

Q8. Can I hold them overnight?
Not recommended for beginners due to overnight risk.

Q9. Which sectors are most volatile in India?
Power, infra, PSU banks, mid-cap metals, and railways.

Q10. What if I lose money in my first trade?
Learn from it, reduce trade size, and never chase losses.

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.