HDIL: The Ping Pong Ball or the Yo-Yo

When the markets were falling about three weeks ago and when Parsvnath was around Rs. 37 a share, I also observed HDIL, Housing Development and Infrastructure Limited, which is a real estate player in the Indian markets. It is a mid cap company with around Rs. 10,000 crore [$2 billion] as the market cap. I had a cash crunch, so, I was unable to buy HDIL stock but I tracked it carefully. So, about 3-4 weeks ago, it was at Rs. 75-80 a share. Yesterday, HDIL was going for Rs. 140 a share, which is an increase of Rs. 60 or 75% within a month. I thought that was phenomenal. So, in essence, this means that when the Bombay Stock Exchange index, BSE went up from 8000 to 10,000 levels, which is a 25% rise, the HDIL stock went up by 75%, indicating a minimum beta of 3. This is certainly very volatile but also quite fruitful for short term players. You can track HDIL online at various stock websites. You could try Sharekhan, www.sharekhan.com and enter HDIL to get the quotes.