High beta stocks from frontline indices have outperformed sharply for over two months—a trend reversal from earlier when only quality stocks were flying. High beta stocks are those in which prices fluctuate more than the market. A stock that swings more than the market over time has a beta above 1, while stocks that deviate lesser than the market have a beta less than 1. High beta stocks oscillate more as the businesses are typically cyclical in nature. Interestingly, high beta stocks within Nifty50 have outperformed low beta stocks since September 2019, points out a ICICI Securities report.

Source: Economic Times January 27, 2020 00:56 UTC