ABB India Limited (ABB.BO) Beta & Volatility
As of May 22, 2026
TL;DR — ABB.BO beta is 0.47
ABB India Limited carries a current beta of 0.47 versus the S&P 500, which classifies it as defensive. Moves significantly less than the broader market — typical of utilities, consumer staples, and large mature names.
That means on a day the index moves 1%, ABB.BO historically tends to move roughly 0.47% in the same direction — although day-to-day correlation is noisy and only meaningful over rolling windows of several months.
What is beta and how is it calculated?
Beta is the slope of a regression line plotted from a stock's returns against the broader market's returns. We use the S&P 500 as the benchmark and monthly returns over a five-year window — the same methodology that backs the FMP "profile beta" field. A beta of 1.0 means a stock moves perfectly in line with the index. A beta of 2.0 means it has historically moved twice as much in either direction. A beta of 0.5 means it moves half as much. Beta below zero (negative) is rare and means the stock tends to move opposite to the market — gold miners and short-volatility ETFs sometimes show this pattern.
ABB.BO beta — rolling windows
1-Year beta
0.45
3-Year beta
0.46
5-Year beta
0.47
1Y/3Y values illustrated from current 5Y monthly beta. Full rolling windows ship with the upcoming risk-data ingest.
Volatility vs the S&P 500
Holding the S&P 500 has a beta of, by definition, 1.0. ABB.BO's beta of 0.47 implies its monthly returns are roughly 53% less volatile than the index. In a 10% market drawdown, history suggests ABB.BO would draw down by roughly 4.7%, all else equal. In a 10% rally it would tend to gain roughly 4.7%. Past performance is not a guarantee — beta is backwards-looking and can shift sharply after major business changes.
Portfolio implications
A defensive beta like ABB.BO's changes the role this stock can play in a portfolio:
- Position sizing: if you target a portfolio beta close to 1.0, you can hold a larger dollar allocation of ABB.BO and still match the market's overall sensitivity.
- Pairing: pair ABB.BO with higher-beta growth names if you want more upside capture without losing the defensive ballast.
- Discount rate: ABB.BO's beta directly feeds the cost of equity in any DCF model. A higher beta raises required return and lowers fair value, so a high-beta growth story has to grow fast enough to justify the premium.
- Drawdown tolerance: if a 30% market sell-off would force you to trim, factor in that a defensive name like ABB.BO would historically draw down by 14% in that scenario.
Related ABB.BO analyses
Frequently asked about ABB.BO beta
What is ABB.BO's beta?↓
ABB.BO's current beta is 0.47, which puts it in the "Defensive" category. Moves significantly less than the broader market — typical of utilities, consumer staples, and large mature names.
What does beta actually measure?↓
Beta measures how a stock's returns move relative to the broader market (usually the S&P 500). A beta of 1.0 means the stock moves in lock-step with the market. A beta of 1.5 means it tends to move 1.5x as much in either direction. A beta below 1.0 means smaller swings; a beta below 0 means the stock often moves in the opposite direction.
How does ABB.BO's beta compare to its sector?↓
Industrials stocks typically sit around 1.0 (market-like). ABB.BO's reading of 0.47 is on the lower-volatility end.
How should I use beta in portfolio construction?↓
Use beta to balance the overall risk profile of your portfolio. A high-beta concentrated portfolio amplifies returns in bull markets but can drawdown sharply. Mixing in low-beta names (utilities, staples, regulated industries) dampens swings. Beta also feeds the WACC discount rate in any DCF — a higher beta raises the cost of equity and lowers fair value, all else equal.
Is beta a measure of risk?↓
Beta is a measure of market-relative volatility, not of total risk. It does not capture business risk, accounting risk, regulatory risk, or governance risk. Use beta in combination with the Quality Triple Check (Piotroski / Beneish / Altman) on the fundamentals page to get a fuller risk picture.