Investment Strategies: Low-beta stocks back in vogue as momentum bets disappoint
ET Intelligence Group: Stocks that show lower fluctuations relative to the benchmark index, or the low beta stocks, are back on investors’ radar as their focus shifts away from momentum stocks amid rising market volatility. ETIG has identified 258 such stocks, that have a beta ratio of 0.9 or lower among the BSE 500 firms. Moreover, 103, or 40%, of these stocks have been able to beat the Sensex return over a span of one year, and 60% have outpaced the index return over the past month.
The uncertainty surrounding the global trade tariffs after the US slapped reciprocal tariffs on exporting countries earlier this month, the volatility index (VIX), which captures the expectations of market participants about near term volatility, across…
