Beta value stocks to pick and save money

There are many factors influence the price movement for the stocks. Broadly we can categorize those movements into technical or fundamental reasons. Short term investors can more focus on the technical data and long term investors can more focus on the fundamentals of the company. This article explains how the beta value shows risk factor for particular stock.

What is Beta value of the stock?

Most popular risk indicator for a stock is beta. Beta measures the volatility of price in the market. Fro example, it gives you the fair idea on how the stock will react for market movements. If the beta is 1, the stock has no volatility and moves with market. If it is greater than 1, it has more volatility and over react for the market movements. For example, if the market saw a down of 2%, this stock will fell down more than 2% because of its higher beta. (Note that price fluctuations are determined by many other factors. High beta stock may react opposite if the particular stock has any breaking news on that day). A beta less than 1 means it tends to be less volatile than the market.

Why you should know Beta?

It is important to know the risk before investing into a specific stock. For small investors, judging the risk is essential before investing any huge amount. I would advice you to check the beta, if you are interested in investing on the less volatile stock. Any mistake on the stock selection would erode all your money.

Beta value of some stocks in January 2011

NSE Code	Security Name	Beta
IBREALEST	Indiabulls Real Estate Ltd.	2.28
PUNJLLOYD	Punj Lloyd Ltd.	2.22
IFCI	IFCI Ltd.	2.13
IOB	Indian Overseas Bank	2
SYNDIBANK	Syndicate Bank	1.9
JSWSTEEL	JSW Steel Ltd.	1.89
LICHSGFIN	LIC Housing Finance Ltd.	1.87
YESBANK	Yes Bank Ltd.	1.86
IDBI	IDBI Bank Ltd.	1.8
HDIL	Housing Development and Infrastructure Ltd.	1.73
GMRINFRA	GMR Infrastructure Ltd.	1.7
UNIONBANK	Union Bank of India	1.62
RECLTD	Rural Electrification Corporation Ltd.	1.53
ANDHRABANK	Andhra Bank	1.49
BANKINDIA	Bank of India	1.44
GLENMARK	Glenmark Pharmaceuticals Ltd.	1.38
BHARATFORG	Bharat Forge Ltd.	1.33
FEDERALBNK	Federal Bank Ltd.	1.31
ASHOKLEY	Ashok Leyland Ltd.	1.27
MRPL	Mangalore Refinery & Petrochemicals Ltd.	1.26
MUNDRAPORT	Mundra Port and Special Economic Zone Ltd.	1.17
TECHM	Tech Mahindra Ltd.	1.16
LUPIN	Lupin Ltd.	1.12
PFC	Power Finance Corporation Ltd.	1.09
CORPBANK	Corporation Bank	1.04
BIOCON	Biocon Ltd.	1.03
TATACHEM	Tata Chemicals Ltd.	1.01
INDHOTEL	Indian Hotels Co. Ltd.	1
SRTRANSFIN	Shriram Transport Finance Co. Ltd.	1
ABIRLANUVO	Aditya Birla Nuvo Ltd.	0.97
CANBK	Canara Bank	0.95
UNIPHOS	United Phosphorus Ltd.	0.79
EXIDEIND	Exide Industries Ltd.	0.75
BANKBARODA	Bank of Baroda	0.74
ADANIENT	Adani Enterprises Ltd.	0.71
MCDOWELL-N	United Spirits Ltd.	0.71
HINDPETRO	Hindustan Petroleum Corporation Ltd.	0.58
ASIANPAINT	Asian Paints Ltd.	0.56
OFSS	Oracle Financial Services Software Ltd.	0.54
CUMMINSIND	Cummins India Ltd.	0.53
PATNI	Patni Computer Systems Ltd.	0.52
COLPAL	Colgate Palmolive (India) Ltd.	0.49
GRASIM	Grasim Industries Ltd.	0.48
GLAXO	Glaxosmithkline Pharmaceuticals Ltd.	0.42
TORNTPOWER	Torrent Power Ltd.	0.4
BEL	Bharat Electronics Ltd.	0.26
CROMPGREAV	Crompton Greaves Ltd.	0.26
ULTRACEMCO	UltraTech Cement Ltd.	0.2
CONCOR	Container Corporation of India Ltd.	0.15
MPHASIS	MphasiS Ltd.	0.15

Best wishes shreenivas

10 POWER STOCK PICKS TO ACCUMULATE IN MARKET FALL

10 POWER STOCK PICS TO ACCUMULATE IN THE MARKET FALL

1. Apollo Tyres:

recommended buying Apollo Tyres with a price target of Rs 97, providing potential upside of 51%.

2. Godawari Power:

recommended buying Godawari Power with a price target of Rs 576, providing potential upside of 44%.

3. HCL Tech:

Its recommended buying HCL Tech with a price target of Rs 488, providing potential upside of 10%.

4. IRB Infrastructure Developers:

It recommends buying IRB Infrastructure Developers with a price target of Rs 301, providing potential upside of 34%.

5. Jagran Prakashan (JPL):

Its recommended buying Jagran Prakashan with a price target of Rs 165, providing potential upside of 22%.

6. M&M:

Its recommended buying M&M with a price target of Rs 872, providing potential upside of 15%.

7. NIIT Tech:

Its recommended buying NIIT Tech with a price target of Rs 278, providing potential upside of 46%.

8. Shree Cement:

Its recommended buying Shree Cement with a price target of Rs 2,580, providing potential upside of 24%.

9. Tata Steel:

Its recommended buying Tata Steel with a price target of Rs 759, providing potential upside of 18%.

10. Usha Martin:

Its recommended buying Usha Martin with a price target of Rs 120, providing potential upside of 72%.

ACCUMULATE THESE STOCKS IN REGULAR INTERVALS FOR SHORT TERM WHEN EVER MARKET FALLS ON BAD NEWS FROM TODAY...

BEST WISHES

Markets may slip N Nifty may down 5400 in 15-30 days

Although the Nifty has shown a smart pullback in the last few days, Prakash Diwan, Networth Stock Broking says it will probably see a retracement from the current levels, "It may go back to 5,400 in sometime, not immediately, but maybe in the next 15-30 days."

Realty, telecom and metals, he says, will probably weaken the Sensex and the Nifty more than any other sectors.

However, he is positive on the IT sector. “IT will become a defensive safer play as compared to others.”

Q: We have seen the market come back to where they were last Wednesday or Tuesday back to the straddling 6,000 mark. Do you think that there is enough steam left to cross this 6,040 to target 6,300 or do you think this should be profit taking time and valuations are already looking little dear?

A: I think the market is pretty laboured, the way it is crossing the 6,000 mark. So, it’s not going to be very easy task for it to go all the way to 6,300 definitely. But possibly if there is some sort of momentum on the back of positive flows, news flows, it could go all the way to 6,070. But there is a topping out which is very eminent there as well. So, while I believe you will probably see a retracement from these levels, maybe back to 5,400 in sometime, not immediately, but maybe in the next 15-30 days.

Q: If we do go back to 5,400, whatever the probabilities are for that, which stocks in the Nifty are looking exceedingly weak perhaps at the 6,000 level which might crack?

A: It’s typically a huge list of stocks which don’t look very strong. So, they could be susceptible to any kind of shorting or some sort of serious profit taking, particularly realty would given in very easily because the comeback has been fairly specious, it’s not very tenable at these levels.

You would also see telecom go through a bit of volatility and hence unfavourable move downward. Metals maybe, but not as severe as other two. So, I believe these three would probably weaken the Sensex and the Nifty more than any other sectors.

Q: What about banks, they spearheaded the rally in September and early October? They have taken a badgering which one never expect probably some of it was unexpected news, but is there a fundamental wobbliness and you would rather take profit when the market gives you a chance?

A: Yes certainly. We believe State Bank of India for e.g. could again react downwards if some profit taking happens. There should be logically some profit booking at these levels, even Axis Bank is looking pretty weak at this juncture. These are the banks which had sharp run-up and they also are finding it weak to continue growing in terms of credit because that’s not looking very great, especially with realty and a lot of other sectors under the scanner at this point in time. So, where is it that the banks are going to finally grow from? That’s where the midcap and the small banks might score much better from here as compared to the larger ones.

Q: What about ITC? It’s been an outperformer, it’s showing strength. Today it’s dipped on account of that news that we have got. Should one use this opportunity to buy perhaps it will get resolved soon because the government is also involved now?

A: I think it’s a bit of an overreaction, more out of sentimental reason than fundamental because for that Rs 18,000 crore tobacco business a four-day closure and that too a planned closure is not bad a news.

ITC is of course facing a bit of competition from new brand launches which are eating away into its market share, especially for its flagship brands like Gold Flake and all. But I am sure they will overcome that and it’s a well integrated diversified business where other revenue streams also could start chipping in. So, I think it’s a great story. FMCG in any case is a great sector to be in these times and ITC would be one of the best picks there.

Q: Where do you hide, if you are thinking that there is macro level, some kind of weakness in the stock market, stockwise is there relative outperformance?

A: You distinctly have IT which is looking up, especially the frontline largecap players. If you look at the job data, which has just come through last couple of days from the US, there is growing optimism that things possibly are not as bad and the recovery is possibly on its way. Given that the stand of the US government towards Indian IT companies in terms of taking on some of these projects and contracts would probably soften in coming January that could mean, and of course you also have the advantage of the rupee dollar favourable situation continuing for almost entire quarter this time. So, the frontline companies are pitching in for contracts, the pitch is very strong. They have given an indication that they should be getting some decent size contracts in January. So, IT will become a defensive safer play as compared to others

Courtesy :Moneycontrol